Stock Price & Analysis

Based on current analysis, ARMK stock is trading near its Fibonacci support levels and has mixed analyst sentiment, suggesting a hold position may be appropriate. The stock has moderate growth potential but faces risks related to meeting FY25 guidance.

Price Prediction for ARMK Stock in 2025

The price prediction for ARMK stock in 2025 is $45.
Analysts have set a high target due to strong Q1 earnings and revenue growth expectations.
The stock is expected to rise as the company demonstrates solid momentum and favorable market conditions.

The S1 support level for ARMK Stock is $34.1 ,The R1 resistant level for ARMK Stock is $37.1.

As of the end of day on 2025-03-13, the price of ARMK Stock was $34.11.

The target price for ARMK Stock according to analyst rating is 45.56, with the highest price target at 49.00 and the lowest at 43.00. Analysts have a Strong Buy rating on ARMK Stock overall.

The market cap of ARMK is $9.1B.

Analysis and Insights

Valuation Metrics

Aramark (ARMK) currently trades at a forward P/E ratio of 36.01 (2024/Q3) and an EV/EBITDA of 12.44 (2025/Q1), both of which are above industry averages, suggesting potential overvaluation.

Financial Performance

While ARMK has shown revenue growth (2025/Q1: $4.55B, up 8.5% YoY), net income has been inconsistent, with Q1 2025 net income of $105.619M, down from Q4 2024's $122.411M. This raises concerns about profitability sustainability.

Dividend Yield

The dividend yield of 1.04% (2025/Q1) is relatively low, offering limited income appeal compared to peers.

Technical Analysis

ARMK's stock is currently below its 200-day moving average, and its RSI of 36.98 indicates oversold conditions. However, the MACD remains negative, signaling continued downward momentum.

Analyst Sentiment

Analysts are mixed, with a consensus rating of "Hold" and a price target of $45. While Citi resumed coverage with a "Buy" rating and $48 target, others like Morgan Stanley maintain a "Hold" due to valuation concerns.

Conclusion

ARMK appears overvalued given its high valuation multiples, inconsistent profitability, and mixed analyst sentiment. Investors should exercise caution and consider waiting for a correction or clearer signs of earnings stability.

Aramark is a global provider of food and facilities services to education, healthcare, business and industry and sports, leisure, and corrections clients. The Company operates through two segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International). The FSS United States segment consists of five sectors, which include business and industry, education, healthcare, sports, leisure and corrections and facilities and others. The Company provides food and beverage services, including catering and retail services, and facilities services, including plant operations and maintenance, custodial, housekeeping, landscaping and other services. The Company's core market is the United States, which is supplemented by an additional 18-country footprint.

Aramark (ARMK) is expected to reach a stock price of $60 by 2030, driven by its strong position in the food and facilities services market and projected double-digit earnings growth in the leisure sector. The company's ability to leverage technology and favorable market conditions supports this bullish outlook.

ARMK has a total of 262550 employees.