ScoreWhy is Aramark ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.00 times
- Poor long term growth as Operating profit has grown by an annual rate 24.13% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.00 times
- The company has been able to generate a Return on Equity (avg) of 9.94% signifying low profitability per unit of shareholders funds
2
Flat results in Jun 25
- NO KEY NEGATIVE TRIGGERS
3
With ROCE of 9.01%, it has a very expensive valuation with a 2.05 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -7.73%, its profits have fallen by -48.7%
4
Below par performance in long term as well as near term
- Along with generating -7.73% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Aramark should be less than 10%
- Overall Portfolio exposure to Leisure Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aramark for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Aramark
32.93%
0.39
29.06%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.66%
EBIT Growth (5y)
114.24%
EBIT to Interest (avg)
1.37
Debt to EBITDA (avg)
7.00
Net Debt to Equity (avg)
1.85
Sales to Capital Employed (avg)
1.92
Tax Ratio
25.26%
Dividend Payout Ratio
34.40%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.23%
ROE (avg)
9.94%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
Price to Book Value
3.74
EV to EBIT
22.47
EV to EBITDA
13.89
EV to Capital Employed
1.98
EV to Sales
0.95
PEG Ratio
NA
Dividend Yield
0.76%
ROCE (Latest)
8.79%
ROE (Latest)
10.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 870.29 MM
INTEREST COVERAGE RATIO(Q)
Highest at 403.13
OPERATING PROFIT(Q)
Highest at USD 351.91 MM
PRE-TAX PROFIT(Q)
Highest at USD 137.51 MM
RAW MATERIAL COST(Y)
Fallen by -7.07% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 8.25
OPERATING PROFIT MARGIN(Q)
Highest at 7.17 %
NET PROFIT(Q)
At USD 101.95 MM has Grown at 64.82%
EPS(Q)
Highest at USD 0.38
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 31.36%
Here's what is working for Aramark
Interest Coverage Ratio
Highest at 403.13 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 870.29 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 351.91 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 137.51 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Operating Profit Margin
Highest at 7.17 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD 137.51 MM has Grown at 62.79%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 101.95 MM has Grown at 64.82%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.38
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend per share
Highest at USD 8.25
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -7.07% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 132.16 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Aramark
Dividend Payout Ratio
Lowest at 31.36% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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