ARAMARK Holdings (ARMK) AI Stock Analysis
ARAMARK Holdings
(BMV:ARMK)
No summary available
ARAMARK Holdings (ARMK) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- MXN 14.23B
- Dividend Yield
- 0.80%
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 37.0
- Beta (1Y)
- -0.03
- Revenue Growth
- 1.10%
- EPS Growth
- -2.94%
- Country
- Mexico
- Employees
- 278,390
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
ARAMARK Holdings Business Overview & Revenue Model
Company Description
Based in Philadelphia, Pennsylvania, Aramark, established in 1959, provides a comprehensive array of services encompassing food management, facility solutions, and uniform provision. The company serves a diverse global clientele, including educationa...
ARAMARK Holdings Earnings Call Summary
The call conveyed strong, broad-based operational and financial momentum: solid top-line organic growth (9% reported; ~11% adjusted for calendar shift), record client retention (~98%), substantial new business wins (+51% YoY YTD), international strength (+11% organic) and notable profitability gains (operating income +18%, AOI up 13%, adjusted EPS +~30%). Aramark Nexus emerged as a material growth and margin opportunity (early mobilizations, scope +40% on a hyperscaler site, $400M–$500M target revenue ramp into FY27–'28) but remains early, lumpy and dependent on client ramp schedules and external permitting/regulatory timing. Management also flagged modest near-term headwinds from calendar timing, mobilization costs, higher capex/working capital and competitive dynamics in Nexus. Overall, positives (revenue, bookings, retention, margin expansion, cash actions) meaningfully outweigh the execution and timing risks called out.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Aramark raised its fiscal ’26 organic revenue outlook to +9%–10%, while reaffirming adjusted operating income (AOI) growth of +12%–17% and adjusted EPS growth of +20%–25%, and said it expects accelerated AOI growth and margin expansion in Q4 (Nexus to contribute roughly 1% of Q4 revenue). Management disclosed Nexus is expected to ramp to roughly $400M–$500M of revenue over fiscal ’27–’28 (first site ~ $150M) and to be accretive to company margins; Q3 results that underlie the guidance included organic revenue +9% to $5.0B (would have been ~2 pts higher absent a calendar shift), FSS U.S. organic +8% to $3.5B (>10% ex-shift), International organic +11% to $1.5B, operating income +18% to $216M, adjusted operating income +13% to $261M with AOI margins expanding ~20 bps (calendar shift reduced AOI by an estimated $20M; AOI would have grown ~21% with ~50 bps margin expansion ex-shift), GAAP EPS $0.36 and adjusted EPS $0.52 (+~30% y/y, ~45% ex-shift), net cash from operations +$41M, free cash flow +$42M, >$1.4B cash availability, $100M of term loans repaid post-quarter and a target to get leverage below 3.0x by year-end.
ARAMARK Holdings Risk Analysis
ARAMARK Holdings disclosed 32 risk factors in its most recent earnings report. ARAMARK Holdings reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksARAMARK Holdings Peers Comparison
Overall Rating
CTAS83Outperform
ABM63Neutral
CVEO56Neutral
TH56Neutral
UNF51Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CTAS | 83Outperform | $87.29B | 42.85 | 42.08% | 0.85% | 9.51% | 12.19% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ABM | 63Neutral | $3.13B | 19.24 | 9.44% | 2.17% | 6.00% | 50.32% |
| CVEO | 56Neutral | $371.82M | -57.09 | -4.76% | ― | 12.61% | 69.81% |
| TH | 56Neutral | $1.36B | -36.16 | -9.80% | ― | 11.92% | -443.76% |
| UNF | 51Neutral | $4.44B | 40.45 | 4.99% | 0.57% | 3.74% | -24.28% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MX:ARMK | ARAMARK Holdings Corp. | 800.00 | 91.09 | 12.85% | |
| ABM | Abm Industries Incorporated | 53.48 | 11.41 | 27.12% | |
| CTAS | Cintas | 219.82 | 39.59 | 21.97% | |
| UNF | UniFirst Corp | 254.84 | 100.03 | 64.61% | |
| CVEO | Civeo Corp. | 35.97 | 12.78 | 55.11% | |
| TH | Target Hospitality | 13.67 | 5.89 | 75.71% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.