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Aramark

ARMK
45
Specialty Business Services · Industrials
Price
$56.74
-0.25 (-0.44%)
Market Cap
$14.92B
Winston Score
45
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+4.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 254.7M (2021) → 267.3M (2025)

Aramark is a company that feeds and supplies people in large institutions. It runs cafeterias, dining halls, and food service operations at schools, hospitals, sports stadiums, prisons, and corporate offices across the country. It also provides uniforms and facility services to businesses, making it one of the largest food and facilities services companies in North America.

Aramark makes money by signing long-term contracts with its clients, then managing the day-to-day operations of their food and support services. It operates mainly in the United States but also has a presence in Europe, Canada, and parts of Asia, generating roughly $18 billion in annual revenue. Its competitive position comes from the scale and complexity of running these contracts, which makes it hard for clients to switch providers easily. However, the company carries significant debt from past acquisitions, and its thin profit margins leave little room for error if food costs or labor expenses rise.

Winston Score History

Politician Trades

3 trades / 12mo

1 Congressional buy and 2 sells on ARMK in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+69.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.6%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$476M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Aramark is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
6.0%
Thin — 6.0% gross margin
Operating Margin
4.5%
Thin — 4.5% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+12.4%
Fast-growing sales (12.4% YoY)
EPS YoY
+1033.3%
Earnings growing fast (1033.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
244%
Turns 244% of profit into real cash
FCF Margin
2.0%
Thin free cash flow (2.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
1.86
Elevated debt (1.86)
Interest Cover
2.41x
Tight — interest eats into profit (2.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
41.7x
Pricey — P/E 41.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+24.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (41.7 → 17.3)

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Dividends

Dividend Yield
0.86%
Small dividend — 0.86% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+13.4%
Dividend growing fast (13.4% YoY)

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