ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
26.47 USD
+0.29 (+1.11%)
26.47 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AROC. AROC was compared to 62 industry peers in the Energy Equipment & Services industry. AROC scores excellent on profitability, but there are concerns on its financial health. AROC is growing strongly while it is still valued neutral. This is a good combination! AROC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- AROC had positive earnings in the past year.
- AROC had a positive operating cash flow in the past year.
- Of the past 5 years AROC 4 years were profitable.
- AROC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.95%, AROC is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- AROC has a Return On Equity of 18.43%. This is amongst the best in the industry. AROC outperforms 91.94% of its industry peers.
- AROC's Return On Invested Capital of 9.15% is fine compared to the rest of the industry. AROC outperforms 72.58% of its industry peers.
- AROC had an Average Return On Invested Capital over the past 3 years of 6.45%. This is significantly below the industry average of 12.77%.
- The last Return On Invested Capital (9.15%) for AROC is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 18.43% | ||
| ROIC | 9.15% |
ROA(3y)3.33%
ROA(5y)1.7%
ROE(3y)9.89%
ROE(5y)5.05%
ROIC(3y)6.45%
ROIC(5y)5.83%
1.3 Margins
- AROC's Profit Margin of 18.22% is amongst the best of the industry. AROC outperforms 96.77% of its industry peers.
- In the last couple of years the Profit Margin of AROC has grown nicely.
- With an excellent Operating Margin value of 36.11%, AROC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of AROC has grown nicely.
- With an excellent Gross Margin value of 64.00%, AROC belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
- In the last couple of years the Gross Margin of AROC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.11% | ||
| PM (TTM) | 18.22% | ||
| GM | 64% |
OM growth 3Y20.43%
OM growth 5Y8.34%
PM growth 3Y61.88%
PM growth 5Y8.11%
GM growth 3Y3.75%
GM growth 5Y2.75%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AROC is still creating some value.
- The number of shares outstanding for AROC has been increased compared to 1 year ago.
- Compared to 5 years ago, AROC has more shares outstanding
- Compared to 1 year ago, AROC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.94, we must say that AROC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.94, AROC is doing worse than 75.81% of the companies in the same industry.
- The Debt to FCF ratio of AROC is 132.56, which is on the high side as it means it would take AROC, 132.56 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AROC (132.56) is worse than 64.52% of its industry peers.
- A Debt/Equity ratio of 1.80 is on the high side and indicates that AROC has dependencies on debt financing.
- The Debt to Equity ratio of AROC (1.80) is worse than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.1
WACC8.32%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that AROC should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.56, AROC is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
- AROC has a Quick Ratio of 1.01. This is a normal value and indicates that AROC is financially healthy and should not expect problems in meeting its short term obligations.
- AROC has a Quick ratio of 1.01. This is in the lower half of the industry: AROC underperforms 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 67.39% over the past year.
- The Earnings Per Share has been growing slightly by 5.59% on average over the past years.
- The Revenue has grown by 31.94% in the past year. This is a very strong growth!
- AROC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
EPS 1Y (TTM)67.39%
EPS 3Y76.8%
EPS 5Y5.59%
EPS Q2Q%81.82%
Revenue 1Y (TTM)31.94%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%30.9%
3.2 Future
- The Earnings Per Share is expected to grow by 22.67% on average over the next years. This is a very strong growth
- AROC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.34% yearly.
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue Next Year28.35%
Revenue Next 2Y16.99%
Revenue Next 3Y13.09%
Revenue Next 5Y10.34%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.19, which indicates a rather expensive current valuation of AROC.
- Based on the Price/Earnings ratio, AROC is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, AROC is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 13.63, the valuation of AROC can be described as correct.
- AROC's Price/Forward Earnings ratio is rather cheap when compared to the industry. AROC is cheaper than 88.71% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. AROC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AROC indicates a slightly more expensive valuation: AROC is more expensive than 66.13% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AROC indicates a slightly more expensive valuation: AROC is more expensive than 62.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 240.37 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
- AROC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of AROC may justify a higher PE ratio.
- AROC's earnings are expected to grow with 34.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)3.08
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
- AROC has a Yearly Dividend Yield of 3.21%.
- AROC's Dividend Yield is rather good when compared to the industry average which is at 1.17. AROC pays more dividend than 88.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, AROC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
- The dividend of AROC has a limited annual growth rate of 3.62%.
- AROC has been paying a dividend for at least 10 years, so it has a reliable track record.
- AROC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)3.62%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
- 51.65% of the earnings are spent on dividend by AROC. This is a bit on the high side, but may be sustainable.
- The dividend of AROC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.65%
EPS Next 2Y35.98%
EPS Next 3Y34%
26.47
+0.29 (+1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners98.99%
Inst Owner Change1.6%
Ins Owners2.7%
Ins Owner Change-0.07%
Market Cap4.64B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (21.16%)
Short Float %4.91%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend0.67
Dividend Growth(5Y)3.62%
DP51.65%
Div Incr Years2
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-2.77%
Max EPS beat(2)3.25%
EPS beat(4)3
Avg EPS beat(4)3.98%
Min EPS beat(4)-2.77%
Max EPS beat(4)10.45%
EPS beat(8)4
Avg EPS beat(8)-0.17%
EPS beat(12)7
Avg EPS beat(12)0.72%
EPS beat(16)9
Avg EPS beat(16)11.11%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)6
Avg Revenue beat(12)-0.47%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)2.17%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.63 | ||
| P/S | 3.23 | ||
| P/FCF | 240.37 | ||
| P/OCF | 8.73 | ||
| P/B | 3.26 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)1.54
EY5.82%
EPS(NY)1.94
Fwd EY7.33%
FCF(TTM)0.11
FCFY0.42%
OCF(TTM)3.03
OCFY11.46%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.33
PEG (5Y)3.08
Graham Number16.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 18.43% | ||
| ROCE | 12.37% | ||
| ROIC | 9.15% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 9.79% | ||
| OM | 36.11% | ||
| PM (TTM) | 18.22% | ||
| GM | 64% | ||
| FCFM | 1.34% |
ROA(3y)3.33%
ROA(5y)1.7%
ROE(3y)9.89%
ROE(5y)5.05%
ROIC(3y)6.45%
ROIC(5y)5.83%
ROICexc(3y)6.45%
ROICexc(5y)5.83%
ROICexgc(3y)6.61%
ROICexgc(5y)5.97%
ROCE(3y)8.72%
ROCE(5y)7.88%
ROICexgc growth 3Y21.54%
ROICexgc growth 5Y7.48%
ROICexc growth 3Y20.63%
ROICexc growth 5Y7.9%
OM growth 3Y20.43%
OM growth 5Y8.34%
PM growth 3Y61.88%
PM growth 5Y8.11%
GM growth 3Y3.75%
GM growth 5Y2.75%
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 210.77% | ||
| Cap/Sales | 35.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.73% | ||
| Profit Quality | 7.37% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.94 |
F-Score9
WACC8.32%
ROIC/WACC1.1
Cap/Depr(3y)170.5%
Cap/Depr(5y)127.77%
Cap/Sales(3y)29.85%
Cap/Sales(5y)23.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.39%
EPS 3Y76.8%
EPS 5Y5.59%
EPS Q2Q%81.82%
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue 1Y (TTM)31.94%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%30.9%
Revenue Next Year28.35%
Revenue Next 2Y16.99%
Revenue Next 3Y13.09%
Revenue Next 5Y10.34%
EBIT growth 1Y57.38%
EBIT growth 3Y37.29%
EBIT growth 5Y12.34%
EBIT Next Year125.71%
EBIT Next 3Y36.23%
EBIT Next 5Y24.24%
FCF growth 1Y134.97%
FCF growth 3Y-20.33%
FCF growth 5YN/A
OCF growth 1Y93.03%
OCF growth 3Y21.86%
OCF growth 5Y8.17%
ARCHROCK INC / AROC FAQ
What is the fundamental rating for AROC stock?
ChartMill assigns a fundamental rating of 6 / 10 to AROC.
What is the valuation status of ARCHROCK INC (AROC) stock?
ChartMill assigns a valuation rating of 5 / 10 to ARCHROCK INC (AROC). This can be considered as Fairly Valued.
What is the profitability of AROC stock?
ARCHROCK INC (AROC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for AROC stock?
The Price/Earnings (PE) ratio for ARCHROCK INC (AROC) is 17.19 and the Price/Book (PB) ratio is 3.26.
How sustainable is the dividend of ARCHROCK INC (AROC) stock?
The dividend rating of ARCHROCK INC (AROC) is 7 / 10 and the dividend payout ratio is 51.65%.