ARMKAramark

$54.94+47% 1Y

Is the business good?

Mixed

The checks split: margins widening, but returns that lean on debt.

1 good, 1 to watch, 2 without data
Margin direction, 3 years+2.0 pts

Profits are tracking sales roughly one-for-one, limited operating leverage either way.

Where ROE comes from4.2× leverage

Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 11% = margin × turnover × leverage.

All from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

Leverage (Debt/EBITDA)behind 72% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is ARMK?

Aramark earns 7.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

7.6%

Return on invested capital · cost of capital 9.0% · 1.4 points below what the capital costs: growth destroys value

Operating margin
4.4%

Operating margin · Specialty Business Services median 6.8% · 12 months to Q3 2026

Share count, year on year
+1.2%

Share count, year on year · shareholders own a smaller slice than a year ago

Gross margin
8.5%

Gross margin

Operating margin by fiscal year
YearOperating margin
FY2020−2.1%
FY20211.6%
FY20223.0%
FY20233.9%
FY20244.1%
FY20254.3%
Details›
Gross margin12 months to Q3 2026
8.5%
Operating margin12 months to Q3 2026
4.4%
Net margin12 months to Q3 2026
1.9%
Revenue, trailing twelve months
$19.8B
Net income, trailing twelve months
$383M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
7.6%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.