FMP
Nov 12, 2024(Last modified: Nov 13, 2024)
Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company operates in various sectors, including education, healthcare, and sports, providing essential services to a wide range of clients. Aramark competes with companies like Compass Group and Sodexo in the service industry.
On November 11, 2024, Aramark reported earnings per share (EPS) of $0.54, slightly above the estimated $0.53. Despite this positive earnings performance, the company generated revenue of $4.42 billion, which was below the expected $4.66 billion. This revenue figure also represents a 9.9% decline compared to the same period last year, as highlighted by Zacks.
The company's EPS of $0.54 met the consensus estimate, indicating stability in earnings performance. However, the revenue shortfall resulted in a negative surprise of 0.51%. This mixed result has led analysts to adjust their forecasts, reflecting a more optimistic outlook for Aramark's future financial performance.
Aramark's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 0.58 and enterprise value to sales ratio of 0.86 indicate how the market values the company's sales and overall valuation.
The company's debt-to-equity ratio of 1.83 highlights its reliance on debt financing, while a current ratio of 0.81 suggests potential liquidity challenges. Despite these factors, Aramark's earnings yield of 2.62% offers a perspective on the return on investment, providing a comprehensive view of its financial health.
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