ARMK Stock Analysis — Aramark
Sector: Business Services
AI Verdict
Aramark trades at 18.4x next year’s earnings while the market expects nearly 100% EPS growth—this is cheap for the growth you’re getting if their sticky contract moat holds up, but any earnings miss could erase the discount quickly.
Competitive Moat
Aramark runs large-scale food, facilities, and uniform services for institutions like hospitals, universities, and stadiums, locking in long-term contracts that create high switching costs. Its scale and entrenched client relationships make it difficult for smaller competitors to displace them.
Summary
Analysts expect Aramark’s earnings to nearly double next year, making its forward P/E drop sharply.
Where It Stands
Aramark returned 6.3% revenue growth year-over-year, trades at 18.4x forward earnings (below the business services sector average of ~20x), and its trailing P/E of 36.5x reflects a transition to much faster expected profit growth.
Key Metrics
- Trailing P/E: 36.5x
- Forward P/E: 18.4x
- PEG Ratio: 0.37
- Earnings Growth: +1.0%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $46.88
- 52-Week Low: $33.71
Analyst Consensus
19 Buy · 3 Hold · 0 Sell (22 analysts)
Bull Case
With analysts forecasting 98.5% EPS growth and a forward P/E of 18.4x, the stock is cheap for the growth on offer if those earnings materialize.
Bear Case
If Aramark’s P/E reverts to the sector median of 20x without delivering the expected EPS growth, the upside vanishes and the stock could stagnate despite the narrative.
Catalyst to Watch
Watch for quarterly earnings—actual EPS delivery versus the 98.5% growth consensus will determine if the valuation reset is justified.