📊 ARMK Key Takeaways
Is Aramark (ARMK) a Good Investment?
Aramark exhibits severe financial distress with deeply negative free cash flow (-904.4M, -18.7% FCF margin) despite modest revenue growth, indicating the business is consuming rather than generating cash. Critical leverage metrics including 1.94x debt-to-equity ratio and 0.8x interest coverage ratio, combined with negative operating cash flow, create an unsustainable capital structure that threatens financial viability.
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.
Why Buy Aramark Stock? ARMK Key Strengths
- Revenue growing 6.4% YoY shows market demand stability in food services sector
- Diluted EPS increased 23.2% YoY despite flat net income, indicating share buyback activity
- Modest liquidity position with 1.27x current ratio and $439.6M cash reserves provides near-term runway
- 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
- Severely negative free cash flow of -904.4M indicates business cannot fund operations and capital needs from internal sources
- Interest coverage ratio of 0.8x means operating income insufficient to cover interest expense, creating default risk
- High leverage at 1.94x debt-to-equity with $6.2B long-term debt on only 3.2B equity base creates financial instability
- Operating cash flow negative at -782.2M despite positive net income suggests earnings quality issues and working capital deterioration
- Minimal profitability with 2.0% net margin and 0.7% ROA limits financial flexibility
- 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 - critical to return to positive to service debt obligations
- Free cash flow and FCF margin - must achieve positive conversion to ensure sustainability
- Interest coverage ratio - needs to exceed 2.0x minimum to reduce default risk
- Debt-to-equity ratio trajectory - should move below 1.5x to improve financial stability
- Working capital management - investigate causes of negative operating cash flow versus positive net income
- 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $4.1B | $35.7M | $0.16 |
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 |
|---|---|---|---|
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112456.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112443.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772746958.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772746924.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772746886.xml | View → |
❓ Frequently Asked Questions about ARMK
What is the AI rating for ARMK?
Aramark (ARMK) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARMK's key strengths?
Claude: Revenue growing 6.4% YoY shows market demand stability in food services sector. Diluted EPS increased 23.2% YoY despite flat net income, indicating share buyback activity. 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: Severely negative free cash flow of -904.4M indicates business cannot fund operations and capital needs from internal sources. Interest coverage ratio of 0.8x means operating income insufficient to cover interest expense, creating default 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 $4.8B.
Does ARMK pay dividends?
Aramark pays dividends, with $31.5M 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 $0.36.
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 rating reflects both perspectives for balanced insights.
Is ARMK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Aramark has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARMK stock overvalued or undervalued?
Valuation metrics for ARMK: ROE of 3.0% (sector avg: 18%), net margin of 2.0% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy ARMK stock in 2026?
Our dual AI analysis gives Aramark a combined SELL rating 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 $-782.2M, with capital expenditures of $122.2M. FCF margin is -18.7%.
How does ARMK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.0% (avg: 8%), ROE 3.0% (avg: 18%), current ratio 1.27 (avg: 1.5).
Is Aramark carrying too much debt?
ARMK has a debt-to-equity ratio of 1.94x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.27 suggests adequate short-term liquidity.