Aramark stock: buy or sell?

ARMK stock price: $42.22 -0.47% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Shares of Aramark closed today at $42.22 and decreased a disappointing -0.47%. With Friday it's been 4 red days in a row.

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally.

Should I buy Aramark stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Aramark stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Aramark stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 13 ratings published for ARMK stock in the last month.

Is ARMK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-19Barclaysn/aEqual Weight
2019-8-8Nomuran/aHold
2019-8-7Stifel NicolausBuyHold
2019-8-7Robert W. BairdOutperformNeutral
2019-8-19Stifel NicolausHoldBuy
2019-8-19Robert W. Bairdn/aNeutral
2019-8-19NomuraNeutralBuy
2019-5-8Morgan Stanleyn/aHold
2019-3-18NomuraBuyNeutral
2019-2-6Credit Suisse Groupn/aOutperform
2019-2-11Nomuran/aBuy
2019-2-11Goldman Sachs GroupConviction-BuyNeutral
2019-1-17Berenberg BankHoldBuy

Aramark stock analysis

Daily outlook

Aramark decreased a disappointing -0.47% and closed at $42.22.

Shares of Aramark decreased a disappointing -0.47% and closed at $42.22. On August, SMA100d and SMA200d crossed up triggering a rise of 19.47%. Since last May when ARMK stock price broke up the SMA200d line, it gained $9.57 (29.31%). From a daily perspective, ARMK is in a short term uptrend after plotting its last bottom ($41.25, on September/10) higher than the previous bottom, and its last top ($43.64, on Sep 13th) also over the previous top. Now trading in between its last bottom and last top ARMK might consolidate in a plain range, waiting to break out over $43.64 or down under $41.25.

ARMK stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week Aramark decreased a bad -1.10%, closing at $42.22. By mid August ARMK climbed an extraordinary 6.41% in just one week.

Aramark stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since SMA20d and SMA40w crossed up late July, ARMK price climbed $6.50 per share (18.20%). Since price and SMA40w lines crossed up late May, ARMK climbed $10.75 (34.16%).

ARMK stock chart (weekly)

Aramark stock price history

Aramark stock went public on December 12th, 2013 with a price of $18.971. Since then, ARMK stock grew a 122.60%, with a yearly average of 24.50%. If you had invested $1,000 in Aramark stock in 2013, it would worth $1,226.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Aramark stock historical price chart

ARMK stock reached 52-week highs on Sep/13 at $43.64, and all-time highs 2018-01-29 with a price of 45.14.

Aramark stock price target is $38.60

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 8 price targets for ARMK stock posted in the last 30 days:
ARMK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-19BarclaysRaises Target$35.00$45.0028.6%
2019-8-8NomuraReiteratesn/a$28.00-
2019-8-7Robert W. BairdDowngrades$38.00$40.005.3%
2019-8-19Robert W. BairdRaises Target$40.00$44.0010%
2019-5-8Morgan StanleySet Price Targetn/a$34.00-
2019-3-18NomuraReiterates$46.00$28.00-39.1%
2019-2-6Credit Suisse GroupReiterates$53.00$44.00-17%
2019-2-11NomuraReiteratesn/a$46.00-
(in average)$42.40$38.60-9.0%
Moving in a range from $46.00 and $28.00, the price forecast for Aramark stock is $38.60. In average, analysts' outlook on ARMK price forecast is negative, reducing the target by a -9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Aramark reported shining results for 2018-Q4 on February. Aramark rose Earnings per Share (EPS) by 14.50%, beating experts estimates of $0.55. Aramark posted $0.63.
ARMK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.28n/a
2017-Q2-n/a0.26n/a
2017-Q32017-11-140.570.54-5.3%
2017-Q42018-02-060.560.595.4%
2018-Q12018-05-080.410.434.9%
2018-Q22018-08-070.430.39-9.3%
2018-Q32018-11-130.670.64-4.5%
2018-Q42019-02-050.550.6314.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Aramark annual turnover jumped a great 8.12% to $15,789.60 M USD from $14,604.40 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) stepped up a 1.04% to 3.60%.

To have an up to date view of the financial situation of Aramark, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Aramark TTM sales up to December 2018 were $16,089.87 and income was $526.28 million USD. When comparing this TTM figures with the last reported annuality, we can esteem Aramark business evolution since September 2018: Annual sales up to December, compared to lastest yearly report, raised a slightly fine 1.90%. Nevertheless, profit margin (net income/sales) remained constant at 3.60%.

ARMK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$13,950 M-$70 M0.5%-
2014$14,833 M6.33%$149 M1.0%111.62%
2015$14,329 M-3.40%$236 M1.6%58.40%
2016$14,416 M0.61%$288 M2.0%21.98%
2017$14,604 M1.31%$374 M2.6%29.92%
2018$15,790 M8.12%$568 M3.6%51.87%
TTM $16,090 M1.90%$526 M3.3%-7.33%

Quarterly financial results

Aramark posted $4,265.35 million in sales for 2018-Q4, a 8.99% improvement compared to previous quarter. Reported quarter income marked $250.68 million with a profit margin of 5.88%. Profit margin raised a 1.39% compared to previous quarter when profit margin was 4.48%. When comparing sales to same quarter last year, Aramark sales marked an excellent increase and soared a 7.57%.
ARMK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$3,620 M-$70 M1.9%-
2017-Q2$3,590 M-0.83%$65 M1.8%-6.91%
2017-Q3$3,654 M1.79%$113 M3.1%73.26%
2017-Q4$3,965 M8.51%$292 M7.4%158.34%
2018-Q1$3,939 M-0.65%$28 M0.7%-90.57%
2018-Q2$3,972 M0.82%$73 M1.8%163.26%
2018-Q3$3,914 M-1.46%$175 M4.5%141.75%
2018-Q4$4,265 M8.99%$251 M5.9%42.88%

Aramark ownership

When you are planning to buy a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Aramark, 1.07% of all outstanding shares are owned by its staff.

Bearish positions for ARMK stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related stocks:

ARMKCTASGEUNF
Market cap$10.4 B$26.0 B$82.2 B$3.0 B
Total shares246.9 M102.5 M8,730.0 M15.4 M
Float shares244.4 M82.0 M8,710.0 M15.1 M
  - Institutional holdings (%)103.3%68.8%58.6%98.8%
  - Insider holdings (%)1.1%15.5%0.2%1.3%
Shares in short selling0.0%0.0%0.0%0.0%

Aramark summary

Friday, September 20th, 2019
Open$42.32
Close$42.22
Day range$42.19 - $42.65
Previous close$42.42
Session gain-0.47%
Average true range$0.74
50d mov avg$38.86
100d mov avg$36.21
200d mov avg$33.50
Daily patternlt06a
Weekly pattern lt06a

Aramark performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Aramark, the comparison is made against Cintas, General Electric and Unifirst.
Stock3m6m12m
ARMK22.38%46.95%-0.47%
CTASCintas9.21%30.44%21.25%
GEGeneral Electric-9.94%-5.42%-19.14%
UNFUnifirst15.03%41.66%10.25%

Aramark competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Aramark. We picked 3 companies as Aramark competitors as they are in the same industry or have similar market objectives.

Latest Aramark stock news