📊 ARMK Key Takeaways
Is Aramark (ARMK) a Good Investment?
Aramark exhibits deteriorating operational health masked by modest revenue growth. Most critically, the company generates negative operating cash flow (-$381.9M) and negative free cash flow (-$605.4M) despite positive net income, signaling acute working capital stress and unsustainable cash burn. Combined with elevated leverage (1.85x D/E) and dangerously weak interest coverage (1.5x), the company faces meaningful refinancing risk.
Aramark shows modest top-line growth, but that growth is not converting into stronger underlying profitability or cash generation. Margins remain thin, leverage is high, and negative operating/free cash flow combined with sub-1x interest coverage materially weakens the fundamental profile. The business appears operationally stable enough to avoid the most severe rating, but fundamentals currently skew unfavorable.
Aramark Key Strengths (ARMK)
- Revenue growth of 6.4% YoY indicates market demand in food service sector
- Positive operating income of $437.3M demonstrates core business generates profits
- Cash position of $475.7M provides near-term operational buffer
- Revenue grew 6.4% year over year, indicating continued demand and contract volume expansion
- Operating income remained positive with a 4.5% operating margin, showing the core business is still profitable before financing costs
- Liquidity appears adequate near term with a 1.27x current ratio and over $439M in cash
ARMK Stock Risks: Aramark Investment Risks
- Operating cash flow of -$381.9M and free cash flow of -$605.4M indicate company is burning cash and not converting sales to actual cash despite profitability
- Debt-to-equity ratio of 1.85x combined with interest coverage of only 1.5x creates significant refinancing and solvency risk
- Flat net income growth (-0.1% YoY) despite 6.4% revenue growth indicates deteriorating operational efficiency and margin compression
- Razor-thin operating margin (4.5%) and net margin (2.0%) leave minimal buffer for adverse business conditions
- Negative FCF margin of -6.2% demonstrates structural cash consumption at scale
- Operating cash flow of negative $782.20M and free cash flow of negative $904.36M indicate weak cash conversion and poor growth quality
- High leverage with debt-to-equity of 1.94x and $6.21B of long-term debt limits financial flexibility
- Interest coverage of 0.8x suggests earnings are not comfortably covering interest expense, raising balance-sheet risk
Key Metrics to Watch
- Operating cash flow trend and drivers of working capital deterioration
- Interest coverage ratio sustainability given debt obligations
- Operating margin trend and ability to achieve pricing power
- Free cash flow path to positive territory
- Operating cash flow and free cash flow recovery
- Interest coverage and net debt reduction
Aramark (ARMK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Aramark presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ARMK Profit Margin, ROE & Profitability Analysis
ARMK vs Consumer Sector: How Aramark Compares
How Aramark compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aramark Stock Overvalued? ARMK Valuation Analysis 2026
Based on fundamental analysis, Aramark shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aramark Balance Sheet: ARMK Debt, Cash & Liquidity
ARMK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aramark's revenue has grown significantly by 14% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.57 reflects profitable operations.
ARMK Revenue Growth, EPS Growth & YoY Performance
ARMK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.3B | $61.9M | $0.23 |
| Q1 2026 | $4.6B | $96.2M | $0.36 |
| Q3 2025 | $4.4B | $28.5M | $0.22 |
| Q2 2025 | $4.2B | $28.5M | $0.20 |
| Q1 2025 | $4.4B | $28.5M | $0.11 |
| Q3 2024 | $4.1B | $28.5M | $0.22 |
| Q2 2024 | $3.9B | $28.5M | $0.20 |
| Q1 2024 | $3.9B | $28.5M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aramark Dividends, Buybacks & Capital Allocation
ARMK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aramark (CIK: 0001584509)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780612166.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780612118.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780612072.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780612030.xml | View → |
| Jun 4, 2026 | 4 | xslF345X06/wk-form4_1780611988.xml | View → |
❓ Frequently Asked Questions about ARMK
What is the AI rating for ARMK?
Aramark (ARMK) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARMK's key strengths?
Claude: Revenue growth of 6.4% YoY indicates market demand in food service sector. Positive operating income of $437.3M demonstrates core business generates profits. ChatGPT: Revenue grew 6.4% year over year, indicating continued demand and contract volume expansion. Operating income remained positive with a 4.5% operating margin, showing the core business is still profitable before financing costs.
What are the risks of investing in ARMK?
Claude: Operating cash flow of -$381.9M and free cash flow of -$605.4M indicate company is burning cash and not converting sales to actual cash despite profitability. Debt-to-equity ratio of 1.85x combined with interest coverage of only 1.5x creates significant refinancing and solvency risk. ChatGPT: Operating cash flow of negative $782.20M and free cash flow of negative $904.36M indicate weak cash conversion and poor growth quality. High leverage with debt-to-equity of 1.94x and $6.21B of long-term debt limits financial flexibility.
What is ARMK's revenue and growth?
Aramark reported revenue of $9.7B.
Does ARMK pay dividends?
Aramark pays dividends, with $63.1M distributed to shareholders in the trailing twelve months.
Where can I find ARMK SEC filings?
Official SEC filings for Aramark (CIK: 0001584509) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARMK's EPS?
Aramark has a diluted EPS of $0.74.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARMK's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aramark has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARMK stock overvalued or undervalued?
Valuation metrics for ARMK: ROE of 6.0% (sector avg: 18%), net margin of 2.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ARMK's AI grade for 2026?
Our dual AI analysis gives Aramark a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARMK's free cash flow?
Aramark's operating cash flow is $-381.9M, with capital expenditures of $223.4M. FCF margin is -6.2%.
How does ARMK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.0% (avg: 8%), ROE 6.0% (avg: 18%), current ratio 1.21 (avg: 1.5).
Is Aramark carrying too much debt?
ARMK has a debt-to-equity ratio of 1.85x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.21 suggests adequate short-term liquidity.