ARMKAramark
Is the business good?
The checks split: earnings fully cash-backed (1.4×) and margins widening, but returns that lean on debt.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 11% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ARMK?
Aramark earns 7.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.4 points below what the capital costs: growth destroys value
- Operating margin
- 4.4%
Operating margin · Specialty Business Services median 6.8% · 12 months to Q3 2026
- Cash conversion
- 1.41×
Cash conversion · 1.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.2%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −2.1% |
| FY2021 | 1.6% |
| FY2022 | 3.0% |
| FY2023 | 3.9% |
| FY2024 | 4.1% |
| FY2025 | 4.3% |
Details›
- Gross margin12 months to Q3 2026
- 8.5%
- Operating margin12 months to Q3 2026
- 4.4%
- Net margin12 months to Q3 2026
- 1.9%
- Free cash flow margin
- 2.2%
- Revenue, trailing twelve months
- $19.8B
- Free cash flow, trailing twelve months
- $433M
- Net income, trailing twelve months
- $383M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Business Services
Ranks #12 of 21 by RyuScore