Aramark stock: buy or sell?

ARMK stock price: $42.46 -0.93% At close on February 21st, 2020

Updated on:
February 21st, 2020

4

Shares of Aramark ended on February 21st at $42.46 and declined a disappointing -0.93%.

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 plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Aramark stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ARMK will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Aramark stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for ARMK stock for the last month.

Aramark stock analysis

Daily outlook

Aramark closed on Feb 21st at $42.46 and declined a disappointing -0.93%.

Aramark shares declined -0.93% to $42.46 on Feb 21st. In the last 19 days when ARMK stock price broke down the SMA100d line, it slid $-1.26 per share (-2.88%). On January/22, ARMK hit new all time highs, pushing higher previous ATH of $46.83 recorded on Jan 21st. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

ARMK stock chart (daily)

Weekly outlook

Shares of Aramark closed this week at $42.46 and remained steady a neutral -0.05%. Early February ARMK plunged a frightening -8.26% in just one week.

Not so far away is the last price record Aramark marked late January. Since SMA20d and SMA40w crossed up late July 2019, ARMK price climbed $6.93 per share (19.50%). Since late May 2019 when ARMK stock price broke up the SMA40w line, it gained $11.15 (35.61%).

ARMK stock chart (weekly)

Aramark stock price history

Aramark stock went public on December 12th, 2013 with a price of $18.871. Since then, ARMK stock grew a 125.00%, with an average of 20.80% per year. If you had invested $1,000 in Aramark stock in 2013, it would worth $1,250.00 today.

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

Aramark stock historical price chart

ARMK stock reached all-time highs on Jan/22 with a price of $47.10.

Aramark stock price target

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. For the last month we have not found any price target for Aramark stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Aramark presented its financial report, posting a more than good climb for the Earnings per Share (EPS). Experts expected $0.55 per share, but 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

Compared to 2017, last anual sales report draw a great gain of 8.12% to $15,789.60 M USD. In contrary, its earnings margin (compared to revenues) appreciated to 3.60%, that is $567.89 million.

To have an updated picture 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 M USD. When comparing this TTM figures with the last reported annuality, we can esteem Aramark business evolution since September 2018: Annual turnover up to December, compared to lastest yearly report, inched a slightly good 1.90%. Regarding profit margin, Aramark stayed constant -0.33% to 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 reported $4,265.35 M in revenues for 2018-Q4, a 8.99% improvement compared to previous quarter. Reported quarter earnings marked $250.68 M with a profit margin of 5.88%. Profit margin stepped up a 1.39% compared to previous quarter when profit margin was 4.48%. When comparing sales to same quarter last year, Aramark sales marked a very good growth and rose 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 invest in a stock, it's always worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Aramark, 1.12% of all outstanding shares are owned by its staff.

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

The following table compares ownership indicators for other stocks related to Aramark:

ARMK
Market cap$10.7 B
Total shares252.3 M
Float shares225.4 M
  - Institutional holdings (%)100.3%
  - Insider holdings (%)1.1%
Shares in short selling0.0%

Aramark summary

Friday, February 21st, 2020
Open$42.73
Close$42.46
Day range$42.32 - $42.82
Previous close$42.86
Session gain-0.93%
Average true range$0.93
50d mov avg$43.78
100d mov avg$43.52
200d mov avg$40.08
Daily patternlt03a
Weekly pattern

Aramark performance

To better understand Aramark performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Aramark to :
Stock3m6m12m
ARMK-0.96%7.66%33.10%

Aramark competitors

Unfortunately, we could not find any public company that could be defined as Aramark competitor. This doesn't mean Aramark does not have any competitor in the market, it's just we could not detected it.

    Latest Aramark stock news