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
11.44%
0.39
29.06%
S&P 500
14.9%
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)
1.96
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
37
Industry P/E
Price to Book Value
3.80
EV to EBIT
22.70
EV to EBITDA
14.04
EV to Capital Employed
2.00
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
0.75%
ROCE (Latest)
8.79%
ROE (Latest)
10.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 386.34
RAW MATERIAL COST(Y)
Fallen by 1.18% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 45.34 times
DIVIDEND PER SHARE(HY)
Highest at USD 8
OPERATING PROFIT(Q)
Highest at USD 343.5 MM
-2What is not working for the Company
ROCE(HY)
Lowest at 10.08%
Here's what is working for Aramark
Interest Coverage Ratio
Highest at 386.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 343.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Inventory Turnover Ratio
Highest at 45.34 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 8
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by 1.18% (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 125.95 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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