Aramark (NYSE:ARMK) is a global leader in providing food, facilities, and uniform services. The company operates across various sectors, including education, healthcare, and business services. As a major player in the service industry, Aramark competes with companies like Compass Group and Sodexo. The company's financial health and performance are closely monitored by investors and analysts alike.
On February 4, 2025, Aramark is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $0.48 and projected revenue of approximately $4.61 billion. This anticipated year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2024. The market is keenly observing these expectations, as the actual results could significantly impact Aramark's stock price.
If Aramark surpasses these estimates, the stock may experience an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings projections. As highlighted by Zacks, Aramark is positioned for a potential positive EPS surprise.
Aramark's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 39.11, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 0.59, suggesting the market values its sales at this multiple. The enterprise value to sales ratio is around 0.87, reflecting the company's total valuation relative to its sales.
The enterprise value to operating cash flow ratio is approximately 20.92, showing the relationship between its enterprise value and cash flow from operations. The earnings yield is about 2.56%, providing insight into the return on investment for shareholders. Aramark's debt-to-equity ratio is approximately 1.83, indicating the proportion of debt used to finance the company's assets relative to equity. Lastly, the current ratio is around 0.81, suggesting the company's ability to cover its short-term liabilities with its short-term assets.
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