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Is this Large Market Cap Stock target price reasonable for Aramark (NYSE:ARMK)?

The company in question is, Aramark (NYSE:ARMK) currently with a stock price of 37.29 (0.49% today). The market cap for Aramark is 9122.75, and is in the sector Services, and Specialty Eateries industry. The target price for Aramark is 41.6. Currently Aramark is trading with a P/E of 35.24, and a forward P/E of 19.34. Average volume for Aramark is 1534.93 and so far today it is 425785.

Performance in the last year for Aramark has been 24.44%. For EPS growth, Aramark has seen a growth of 52.50%, and is looking to grow in the next year to 12.42%. More long term stats show that EPS growth has been 43.80% over the last five years and could be 12.87% for the next five years. Aramark has seen sales growth quarter over quarter at 2.90%, with EPS growth quarter over quarter at 31.60%. The 20-day simple moving average is -0.06%, with the 200-day simple moving average coming to 9.89%.

Since the IPO date for Aramark on the 12/12/2013, Aramark has seen performance year to date to be 16.04%. With Aramark trading at 37.29, the dividend yield is 1.02%, and the EPS is 1.05.

So could Aramark, be undervalued? Well as said before P/E is 35.24. The PEG is 2.74, P/S is 0.63 and the P/B is at 4.32. The P/cash is 46.43, with P/free cash flow at 32.52.

Aramark ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1. This is with long term debt/equity at 2.58, and total debt/equity at 2.6.

In terms of margins, Aramark has a gross margin of 10.30%, an operating margin of 4.90% and a profit margin of 1.80%.Payout ratio for Aramark is 34.20%. Return on assets come to 2.50% with return on investment coming to 7.30%.

Insider ownership for Aramark, is at 0.90% and institutional ownership comes to 96.00%. Outstanding shares are at 245.83. While shares float is 229.73. The float short is currently 2.44%, and short ratio is 3.66.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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