ARMK - Embedded Expectations Analysis - 2020 01 22
ï€ Aramark (ARMK:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.5x Uniform P/E, implying bearish expectations for the firm, but management is confident about their performance and opportunities to improve profitability, suggesting market expectations are too pessimistic and equity upside is likely warranted for ARMKï€ Specifically, management is confident about their international sports and business dining performance and about their focus on improving performance and retention across all their businesses. In addition, they are confident that adjusted EPS was up 1% and that there are long-term opportunities to improve profitability
ï€ Given management's confidence about their performance and long-term opportunities to improve profitability, current market expectations appear too bearish, and outperformance is likely warranted for ARMK
Aramark is a provider of food, facilities and uniform services. The company manages its Food and Support Services (FSS) business in segments split between its United States and International operations. The company's FSS segments manage a number of interrelated services-including food, hospitality, procurement and facility services-for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks and correctional institutions. The company's Uniform and Career Apparel segment provides employee uniform solution, including design, sourcing and manufacturing, delivery, cleaning and maintenance.
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