July 10, 2019

ARMK – Market expectations are for significant Uniform ROA declines, but management is confident about business synergies, FSS margins, and their balance sheet


  • Aramark (ARMK:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 14.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident about FSS margins, their balance sheet, and their ability to meet expectations for business synergies
  • Specifically, management is confident that they are looking to strengthen their balance sheet, and on their focus on profitable growth. In addition, they are confident base North America FSS margins are up, and in their expectations for this to continue. Moreover, they are confident in their expectations for synergies from the integration of AmeriPride and Avendra.
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