ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
26.37 USD
+0.43 (+1.66%)
Overall AROC gets a fundamental rating of 6 out of 10. We evaluated AROC against 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 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
- AROC had positive earnings in the past year.
- In the past year AROC had a positive cash flow from operations.
- Of the past 5 years AROC 4 years were profitable.
- In the past 5 years AROC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of AROC (5.95%) is better than 72.58% of its industry peers.
- With an excellent Return On Equity value of 18.43%, AROC belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
- With a decent Return On Invested Capital value of 9.15%, AROC is doing good in the industry, outperforming 72.58% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AROC 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 has a Profit Margin of 18.22%. This is amongst the best in 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.
- AROC has a better Gross Margin (64.00%) 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AROC is creating some value.
- Compared to 1 year ago, AROC has more shares outstanding
- AROC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AROC has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.92, we must say that AROC is in the distress zone and has some risk of bankruptcy.
- AROC's Altman-Z score of 0.92 is on the low side compared to the rest of the industry. AROC is outperformed by 75.81% 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 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.
- AROC has a worse Debt to Equity ratio (1.80) than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.92 |
ROIC/WACC1.09
WACC8.36%
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 worse Quick ratio (1.01) than 72.58% of its industry peers.
| 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.
- 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!
- Measured over the past years, AROC shows a small growth in Revenue. The Revenue has been growing by 3.70% on average per year.
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.
- Based on estimates for the next years, AROC will show a quite strong growth in Revenue. The Revenue will grow by 10.34% on average per year.
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue Next Year28.27%
Revenue Next 2Y16.92%
Revenue Next 3Y12.96%
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.
- 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 17.12, which indicates a rather expensive current valuation of AROC.
- Based on the Price/Earnings ratio, AROC is valued a bit cheaper than 77.42% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AROC to the average of the S&P500 Index (27.33), we can say AROC is valued slightly cheaper.
- AROC is valuated correctly with a Price/Forward Earnings ratio of 13.58.
- Based on the Price/Forward Earnings ratio, AROC is valued cheaper than 88.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AROC to the average of the S&P500 Index (24.12), we can say AROC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AROC is valued a bit more expensive than the industry average as 66.13% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, AROC is valued a bit more expensive than 62.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 239.46 | ||
| EV/EBITDA | 9.31 |
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 34.00% in the coming years.
PEG (NY)0.32
PEG (5Y)3.06
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.22%, AROC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.21, AROC pays a better dividend. On top of this AROC pays more dividend than 88.71% of the companies listed in the same industry.
- AROC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
- AROC pays out 51.65% of its income as dividend. 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%
NYSE:AROC (1/15/2026, 12:50:09 PM)
26.37
+0.43 (+1.66%)
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 Change0.11%
Ins Owners2.7%
Ins Owner Change-0.07%
Market Cap4.62B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (21.62%)
Short Float %4.91%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)0%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 13.58 | ||
| P/S | 3.21 | ||
| P/FCF | 239.46 | ||
| P/OCF | 8.69 | ||
| P/B | 3.25 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 9.31 |
EPS(TTM)1.54
EY5.84%
EPS(NY)1.94
Fwd EY7.36%
FCF(TTM)0.11
FCFY0.42%
OCF(TTM)3.03
OCFY11.5%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.32
PEG (5Y)3.06
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 | 0.92 |
F-Score9
WACC8.36%
ROIC/WACC1.09
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 Year28.27%
Revenue Next 2Y16.92%
Revenue Next 3Y12.96%
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 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.
Can you provide the PE and PB ratios for AROC stock?
The Price/Earnings (PE) ratio for ARCHROCK INC (AROC) is 17.12 and the Price/Book (PB) ratio is 3.25.
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%.