ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
25.96 USD
+0.38 (+1.49%)
25.96 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. While AROC has a great profitability rating, there are quite some concerns on its financial health. AROC is not overvalued while it is showing excellent growth. This is an interesting combination. Finally AROC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year AROC was profitable.
AROC had a positive operating cash flow in the past year.
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 69.35% of its industry peers.
AROC has a Return On Equity of 18.43%. This is amongst the best in the industry. AROC outperforms 90.32% of its industry peers.
The Return On Invested Capital of AROC (9.15%) is better than 69.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AROC is significantly below the industry average of 13.09%.
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.
AROC's Profit Margin has improved in the last couple of years.
The Operating Margin of AROC (36.11%) is better than 98.39% of its industry peers.
In the last couple of years the Operating Margin of AROC has grown nicely.
The Gross Margin of AROC (64.00%) is better than 96.77% of its industry peers.
AROC's Gross Margin has improved in the last couple of years.
| 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
The debt/assets ratio for AROC has been reduced compared to a year ago.
2.2 Solvency
AROC has an Altman-Z score of 0.91. This is a bad value and indicates that AROC is not financially healthy and even has some risk of bankruptcy.
AROC has a Altman-Z score of 0.91. This is in the lower half of the industry: AROC underperforms 75.81% of its industry peers.
AROC has a debt to FCF ratio of 132.56. This is a negative value and a sign of low solvency as AROC would need 132.56 years to pay back of all of its debts.
With a Debt to FCF ratio value of 132.56, AROC is not doing good in the industry: 66.13% of the companies in the same industry are doing better.
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 85.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.91 |
ROIC/WACC1.08
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AROC should not have too much problems paying its short term obligations.
AROC's Current ratio of 1.56 is on the low side compared to the rest of the industry. AROC is outperformed by 70.97% of its industry peers.
A Quick Ratio of 1.01 indicates that AROC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, AROC is doing worse than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
AROC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.39%, which is quite impressive.
AROC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.59% yearly.
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
AROC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.67% yearly.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue Next Year28.35%
Revenue Next 2Y17.07%
Revenue Next 3Y9.53%
Revenue Next 5Y10.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.86, which indicates a correct valuation of AROC.
Compared to the rest of the industry, the Price/Earnings ratio of AROC indicates a somewhat cheap valuation: AROC is cheaper than 72.58% of the companies listed in the same industry.
AROC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.50.
AROC is valuated correctly with a Price/Forward Earnings ratio of 13.37.
Based on the Price/Forward Earnings ratio, AROC is valued cheaply inside the industry as 82.26% of the companies are valued more expensively.
AROC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.93.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 13.37 |
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 74.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AROC is valued a bit more expensive than the industry average as 66.13% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 235.74 | ||
| EV/EBITDA | 9.23 |
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)0.32
PEG (5Y)3.02
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
AROC has a Yearly Dividend Yield of 3.33%.
AROC's Dividend Yield is rather good when compared to the industry average which is at 1.32. AROC pays more dividend than 87.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AROC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of AROC has a limited annual growth rate of 3.62%.
AROC has paid a dividend for at least 10 years, which is 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.
AROC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.65%
EPS Next 2Y35.98%
EPS Next 3Y34%
25.96
+0.38 (+1.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.68%
Inst Owner Change2.32%
Ins Owners2.7%
Ins Owner Change-0.07%
Market Cap4.55B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (23.54%)
Short Float %4.46%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
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)2.17%
PT rev (3m)2.17%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.86 | ||
| Fwd PE | 13.37 | ||
| P/S | 3.16 | ||
| P/FCF | 235.74 | ||
| P/OCF | 8.56 | ||
| P/B | 3.2 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 9.23 |
EPS(TTM)1.54
EY5.93%
EPS(NY)1.94
Fwd EY7.48%
FCF(TTM)0.11
FCFY0.42%
OCF(TTM)3.03
OCFY11.68%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.32
PEG (5Y)3.02
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 | 0.91 |
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 Y52.84%
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 2Y17.07%
Revenue Next 3Y9.53%
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 for AROC stock?
ChartMill assigns a valuation rating of 6 / 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 16.86 and the Price/Book (PB) ratio is 3.2.
Can you provide the financial health for AROC stock?
The financial health rating of ARCHROCK INC (AROC) is 2 / 10.