ARMK

Aramark

Consumer


Presented:04/26/2019
Price:$31.04
Cap:$7.65B
Current Price:$39.01
Cap:$10.28B

Presented

Date04/26/2019
Price$31.04
Market Cap$7.65B
Ent Value$14.40B
P/E Ratio14.92x
Book Value$13.09
Div Yield1.42%
Shares O/S246.30M
Ave Daily Vol2,895,950
Short Int4.51%

Current

Price$39.01
Market Cap$10.28B
Aramark engages in the provision of food, facilities, and uniform services. It operates through the following business segments: Food and Support Services United States (FSS United States); Food and Support Services International (FSS International); and Uniform. The FSS United States segment offers food, hospitality and facility services for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks, and correctional institutions. The FSS International segment covers food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure, and other facilities serving the general public. The Uniform segment comprises of rental, sale, cleaning, maintenance, and delivery of personalized uniforms and other textile items on a contract basis, and direct marketing of personalized uniforms, and accessories to clients. The company was founded in 1959 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Aramark (ARMK)

Highlights

Following a challenging Q4 '18 for Aramark (ARMK), the presenter is long the stock and sees upside based on a combination of reasonable earnings growth and multiple expansion. The historically stable business generates 2% - 4% top line growth and double digit earnings growth, but cash costs associated with recent acquisitions and self-inflicted wounds have clouded the outlook, leading to unwarranted multiple contraction. In the presenter's opinion, ARMK should not be trading at 10.5x normalized 2020 FCF/share (13x 2019 estimates). At 15x - 16x his $2.75 2020 FCF/share forecast, there would be >35% upside potential. And, with optionality around fundamental outperformance, capital deployment, or a push for change, the risk/reward setup appears to be very favorable.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.