Provides food and beverage services to educational institutions. Offers facility management services, including plant operations and maintenance. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 11% a year over the last 4 years. Red columns mark years that ended in a loss.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Clearly above the class average — a step short of the very top.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Business Quality: Profit power and business quality trail similar companies in the sector.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
Over the last 4 years, sales grew about 11% a year on average.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 106 buys and 34 sells. Management buying with its own money is usually read as a good sign.
The company’s market value is 47 times its annual profit. Even a small disappointment could hit the price hard.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 34/100.
Measured against its sector, the quality of the business sits below the class average. Report-card grade: 45/100.
On our five-subject report card, ARMK sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: ARMK is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
Analysts’ average target sits above today’s price, yet the valuation grade (53/100) says the stock isn’t cheap.