Aramark Intrinsic Value Calculation – Aramark Expands Hospitality Portfolio with Acquisition of Heathland Hospitality Group and Retains Entire Workforce
November 1, 2024

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ARAMARK ($NYSE:ARMK) is a leading provider of food, facilities, and uniform services, serving various industries including education, healthcare, sports and entertainment, and business. In a recent move to expand its hospitality portfolio, ARAMARK has acquired Heathland Hospitality Group, a highly regarded hospitality company based in Montgomery County. This acquisition further strengthens ARAMARK’s position in the hospitality industry and allows it to offer a wider range of services to its clients. One of the key aspects of this acquisition is that ARAMARK has retained the entire workforce of Heathland Hospitality Group. This means that over 100 employees will continue to work for the company under ARAMARK’s Refreshments division. This move not only ensures job security for the employees, but also brings on board a team of experienced and dedicated professionals who are well-versed in the hospitality industry.
With a strong track record of delivering exceptional hospitality services, Heathland brings valuable insights and best practices to ARAMARK’s existing portfolio. This will ultimately benefit the clients of ARAMARK by providing them with an even higher level of service. This acquisition also aligns with ARAMARK’s commitment to diversity and inclusion. By retaining their entire workforce, ARAMARK continues to support and promote diversity within its own company and the hospitality industry as a whole. With this strategic move, ARAMARK is poised to offer even greater value to its clients and strengthen its position as a leader in the hospitality industry.
Share Price
On Thursday, ARAMARK, a leading global provider of food, facilities and uniform services, announced its acquisition of Heathland Hospitality Group, a provider of premium hospitality services. This acquisition marks a significant expansion of ARAMARK’s hospitality portfolio, as well as its commitment to providing exceptional service to its clients. The acquisition of Heathland Hospitality Group is expected to have a positive impact on ARAMARK’s financial performance. Despite a slight drop in ARAMARK’s stock price on Thursday, the company remains confident in the potential of this acquisition to drive growth and increase shareholder value. This decision emphasizes the company’s dedication to investing in and valuing its employees. It also speaks to ARAMARK’s focus on maintaining a high level of service and expertise within its team. By incorporating the talents and experience of Heathland Hospitality Group’s workforce into its own team, ARAMARK is poised to enhance its capabilities in providing top-notch hospitality services.
This will allow the company to better meet the evolving needs and expectations of its diverse clientele. Furthermore, this acquisition showcases ARAMARK’s commitment to constantly evolving and expanding its offerings. By broadening its portfolio with the addition of Heathland Hospitality Group, ARAMARK is able to provide a more comprehensive range of services to its clients. This will undoubtedly strengthen the company’s position as a leader in the hospitality industry. With a focus on retaining the entire workforce and utilizing their expertise, ARAMARK is well-positioned to further enhance its hospitality offerings and drive business growth. Aramark_Expands_Hospitality_Portfolio_with_Acquisition_of_Heathland_Hospitality_Group_and_Retains_Entire_Workforce”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aramark. More…
| Total Revenues | Net Income | Net Margin |
| 19.35k | 628.49 | 1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aramark. More…
| Operations | Investing | Financing |
| 725.1 | 82.13 | -787.89 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aramark. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.42k | 9.56k | 10.85 |
Key Ratios Snapshot
Some of the financial key ratios for Aramark are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.6% | -5.1% | 6.8% |
| FCF Margin | ROE | ROA |
| 1.2% | 24.9% | 6.6% |
Analysis – Aramark Intrinsic Value Calculation
After conducting a thorough analysis of ARAMARK’s fundamentals, we have determined that the intrinsic value of their shares is approximately $33.2. This valuation was calculated using our proprietary Valuation Line method, which takes into account various financial metrics and projections. Currently, ARAMARK’s stock is trading at $37.84, indicating that it is slightly overvalued by 13.8%. However, this does not necessarily mean that it is a bad investment. It is important to consider the overall market conditions and the company’s future growth potential before making any investment decisions. In terms of fundamentals, ARAMARK has a strong financial position with consistent revenue growth and a healthy balance sheet. The company also has a diversified portfolio of services and a strong presence in various industries, providing stability and potential for future growth. Additionally, ARAMARK has been implementing cost-cutting measures and focusing on efficiency improvements, which could lead to increased profitability in the future. However, it is worth noting that the company does face some competition in its markets and may be affected by economic downturns. Overall, our analysis suggests that ARAMARK is a solid company with a fair stock price at the moment. Investors should carefully consider their own risk tolerance and long-term investment goals before deciding whether to buy or hold onto ARAMARK shares. Aramark_Expands_Hospitality_Portfolio_with_Acquisition_of_Heathland_Hospitality_Group_and_Retains_Entire_Workforce”>More…

Peers
Its competitors include Sodexo, GS Holdings Ltd, ISS A/S.
– Sodexo ($LTS:0J3F)
Sodexo is a French food services and facilities management company. It is one of the world’s largest multinational corporations, with 420,000 employees in 80 countries. Sodexo has a market cap of 13.15B as of 2022, a Return on Equity of 13.73%. The company provides services in many industries including healthcare, education, energy and resources, government and agencies, and business and industry. Sodexo is a publicly traded company listed on the Euronext Paris stock exchange.
– GS Holdings Ltd ($SGX:43A)
Founded in 1992, GS Holdings Ltd is a leading investment holding company in China with a focus on the information technology, media, and telecommunications industries. The company has a market capitalization of $23.62 million as of 2022 and a return on equity of -42.76%. GS Holdings Ltd is headquartered in Beijing, China.
– ISS A/S ($BER:QJQ)
Danish shipping and oil group A.P. Moller-Maersk A/S has a market cap of 3.69B as of 2022. The company has a Return on Equity of 17.43%. A.P. Moller-Maersk is a global conglomerate with businesses in a wide range of industries, including shipping, oil and gas, retail, and more. The company is headquartered in Copenhagen, Denmark.
Summary
Aramark has recently announced the acquisition of Heathland Hospitality Group, a Montgomery County-based hospitality company. This move is expected to strengthen Aramark’s presence in the hospitality industry and expand its portfolio of services. With the acquisition, Aramark will be able to tap into the expertise and resources of Heathland Hospitality Group, which has a team of over 100 employees who have all been offered positions at Aramark Refreshments.
This strategic investment puts Aramark in a strong position to capitalize on the growing demand for hospitality services and increase its market share in this sector. Overall, this acquisition is a positive move for Aramark and is expected to have a positive impact on its financial performance in the long run.
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