Aramark Intrinsic Value – ARAMARK Reports 11.6% Increase in Q4 Revenue for FY2023, Totaling USD 4901.6 Million
December 18, 2023
☀️Earnings Overview
On November 14, 2023, ARAMARK ($NYSE:ARMK) announced that their total revenue for the fourth quarter of fiscal year 2023, ending September 30, 2023, was USD 4901.6 million – a growth of 11.6% from the same quarter a year earlier. Additionally, their net income of USD 205.4 million rose by 171.0% compared to the prior year.
Analysis – Aramark Intrinsic Value
ARAMARK is a leading provider of professional services, food services, facilities management, and uniform and career apparel. To assess ARAMARK’s stock performance, GoodWhale recently conducted an in-depth analysis of the company. The analysis revealed that the intrinsic value of the ARAMARK share is around $33.5. This number was calculated using GoodWhale’s proprietary Valuation Line. Currently, ARAMARK stock is traded at $26.2, suggesting that it is undervalued by 21.9%. This could be a great opportunity for investors looking to buy into a well-established company at a low price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aramark. More…
| Total Revenues | Net Income | Net Margin |
| 18.85k | 674.11 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aramark. More…
| Operations | Investing | Financing |
| 766.43 | 208.91 | 653.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aramark. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.87k | 13.15k | 14.22 |
Key Ratios Snapshot
Some of the financial key ratios for Aramark are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.7% | -5.1% | 6.8% |
| FCF Margin | ROE | ROA |
| 1.8% | 22.2% | 4.8% |
Peers
Its competitors include Sodexo, GS Holdings Ltd, ISS A/S.
– Sodexo ($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
Investors in ARAMARK saw a mixed reaction on November 14th 2023 when the company reported their financial results for Q4 of FY2023. Revenue was reported at USD 4901.6 million, which was an 11.6% increase from the same period last year and a record for the company.
However, net income of USD 205.4 million was lower than expected, representing a 171.0% increase from the previous year. Despite the impressive revenue increase, investors showed skepticism in response to the news and the stock price moved down on the same day. Investors may want to keep an eye on ARAMARK’s performance in the coming quarters to get a better idea of the company’s long-term prospects.
