ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - NYSE:AROC - US03957W1062 - Common Stock
25.38 USD
-0.27 (-1.05%)
25.38 USD
0 (0%)
Overall AROC gets a fundamental rating of 6 out of 10. We evaluated AROC against 60 industry peers in the Energy Equipment & Services industry. While AROC has a great profitability rating, there are quite some concerns on its financial health. AROC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! AROC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AROC was profitable.
In the past year AROC had a positive cash flow from operations.
AROC had positive earnings in 4 of the past 5 years.
AROC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AROC has a Return On Assets of 5.95%. This is in the better half of the industry: AROC outperforms 71.67% of its industry peers.
AROC has a Return On Equity of 18.43%. This is amongst the best in the industry. AROC outperforms 86.67% of its industry peers.
The Return On Invested Capital of AROC (9.15%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AROC is in line with the industry average of 7.82%.
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 has a Profit Margin of 18.22%. This is amongst the best in the industry. AROC outperforms 96.67% of its industry peers.
In the last couple of years the Profit Margin of AROC has grown nicely.
AROC has a Operating Margin of 36.11%. This is amongst the best in the industry. AROC outperforms 98.33% of its industry peers.
In the last couple of years the Operating Margin of AROC has grown nicely.
AROC has a better Gross Margin (64.00%) than 96.67% of its industry peers.
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
AROC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, AROC has more shares outstanding
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 0.91, we must say that AROC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AROC (0.91) is worse than 70.00% of its industry peers.
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 68.33% of its industry peers.
AROC has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.80, AROC is not doing good in the industry: 86.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.08
WACC8.47%
2.3 Liquidity
AROC has a Current Ratio of 1.56. This is a normal value and indicates that AROC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.56, AROC is not doing good in the industry: 70.00% 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.
With a Quick ratio value of 1.01, AROC is not doing good in the industry: 78.33% of the companies in the same industry are doing better.
| 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!
The Revenue has been growing slightly by 3.70% on average over the past years.
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 22.50% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.95% on average over the next years. This is quite good.
EPS Next Y52.51%
EPS Next 2Y35.78%
EPS Next 3Y27.69%
EPS Next 5Y22.5%
Revenue Next Year28.35%
Revenue Next 2Y16.96%
Revenue Next 3Y10.78%
Revenue Next 5Y10.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.48, which indicates a correct valuation of AROC.
65.00% of the companies in the same industry are more expensive than AROC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.03. AROC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.11, the valuation of AROC can be described as correct.
AROC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROC is cheaper than 80.00% of the companies in the same industry.
AROC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
AROC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AROC is more expensive than 73.33% of the companies in the same industry.
66.67% of the companies in the same industry are cheaper than AROC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 231.06 | ||
| EV/EBITDA | 9.26 |
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.
A more expensive valuation may be justified as AROC's earnings are expected to grow with 27.69% in the coming years.
PEG (NY)0.31
PEG (5Y)2.95
EPS Next 2Y35.78%
EPS Next 3Y27.69%
5. Dividend
5.1 Amount
AROC has a Yearly Dividend Yield of 3.27%.
Compared to an average industry Dividend Yield of 2.92, AROC pays a better dividend. On top of this AROC pays more dividend than 86.67% of the companies listed in the same industry.
AROC's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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
AROC pays out 51.65% of its income as dividend. 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 2Y35.78%
EPS Next 3Y27.69%
25.38
-0.27 (-1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.74%
Inst Owner Change-0.97%
Ins Owners2.71%
Ins Owner Change-0.07%
Market Cap4.46B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target31.39 (23.68%)
Short Float %4.23%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend0.67
Dividend Growth(5Y)3.62%
DP51.65%
Div Incr Years2
Div Non Decr Years7
Ex-Date
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)-0.31%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)1.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 13.11 | ||
| P/S | 3.1 | ||
| P/FCF | 231.06 | ||
| P/OCF | 8.39 | ||
| P/B | 3.14 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 9.26 |
EPS(TTM)1.54
EY6.07%
EPS(NY)1.94
Fwd EY7.63%
FCF(TTM)0.11
FCFY0.43%
OCF(TTM)3.03
OCFY11.92%
SpS8.19
BVpS8.09
TBVpS6.54
PEG (NY)0.31
PEG (5Y)2.95
Graham Number16.74
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 | 0.91 |
F-Score9
WACC8.47%
ROIC/WACC1.08
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 Y52.51%
EPS Next 2Y35.78%
EPS Next 3Y27.69%
EPS Next 5Y22.5%
Revenue 1Y (TTM)31.94%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%30.9%
Revenue Next Year28.35%
Revenue Next 2Y16.96%
Revenue Next 3Y10.78%
Revenue Next 5Y10.95%
EBIT growth 1Y57.38%
EBIT growth 3Y37.29%
EBIT growth 5Y12.34%
EBIT Next Year122.08%
EBIT Next 3Y36.5%
EBIT Next 5Y25.05%
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 for 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.
What are the PE and PB ratios of ARCHROCK INC (AROC) stock?
The Price/Earnings (PE) ratio for ARCHROCK INC (AROC) is 16.48 and the Price/Book (PB) ratio is 3.14.
Can you provide the financial health for AROC stock?
The financial health rating of ARCHROCK INC (AROC) is 2 / 10.