4 Analysts Assess Aramark: What You Need To Know

Aramark ARMK underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Aramark, presenting an average target of $31.75, a high estimate of $35.00, and a low estimate of $26.00. Observing a downward trend, the current average is 19.96% lower than the prior average price target of $39.67.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Aramark. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Aramark. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Aramark compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Aramark's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Aramark analyst ratings.

Delving into Aramark's Background

Aramark provides food, facilities, and uniform services to a variety of clients and institutions. The majority of company revenue comes from its North American food and support services segment. Smaller but substantial segments include food and support services international, food and support services united states and uniform and career apparel. The food and support services segments provide food for school districts; colleges; healthcare facilities; correctional institutions; and business, sports, and entertainment venues. The uniform segment rents, delivers, cleans, and maintains work clothes and ancillary items like towels and mats to customers in North America and Japan. The company has hundreds of service locations and distribution centers across the United States and Canada.

Understanding the Numbers: Aramark's Finances

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Aramark showcased positive performance, achieving a revenue growth rate of 11.64% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Aramark's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.19%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Aramark's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.66%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Aramark's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.27%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 2.32, Aramark adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.