ARCHROCK INC (AROC) Fundamental Analysis & Valuation

NYSE:AROC • US03957W1062

Current stock price

36.6 USD
+0.65 (+1.81%)
Last:

This AROC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. AROC Profitability Analysis

1.1 Basic Checks

  • AROC had positive earnings in the past year.
  • In the past year AROC had a positive cash flow from operations.
  • AROC had positive earnings in each of the past 5 years.
  • AROC had a positive operating cash flow in each of the past 5 years.
AROC Yearly Net Income VS EBIT VS OCF VS FCFAROC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.33%, AROC belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
  • AROC has a better Return On Equity (21.39%) than 90.16% of its industry peers.
  • AROC has a Return On Invested Capital of 10.41%. This is amongst the best in the industry. AROC outperforms 81.97% of its industry peers.
  • AROC had an Average Return On Invested Capital over the past 3 years of 8.56%. This is below the industry average of 13.21%.
  • The last Return On Invested Capital (10.41%) for AROC is above the 3 year average (8.56%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.33%
ROE 21.39%
ROIC 10.41%
ROA(3y)5.22%
ROA(5y)3.67%
ROE(3y)15.36%
ROE(5y)10.82%
ROIC(3y)8.56%
ROIC(5y)6.87%
AROC Yearly ROA, ROE, ROICAROC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15 20

1.3 Margins

  • With an excellent Profit Margin value of 21.41%, AROC belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
  • In the last couple of years the Profit Margin of AROC has grown nicely.
  • AROC's Operating Margin of 38.62% is amongst the best of the industry. AROC outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of AROC has grown nicely.
  • AROC's Gross Margin of 65.81% is amongst the best of the industry. AROC outperforms 96.72% of its industry peers.
  • AROC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 38.62%
PM (TTM) 21.41%
GM 65.81%
OM growth 3Y31.75%
OM growth 5Y10.96%
PM growth 3Y61.64%
PM growth 5YN/A
GM growth 3Y9.31%
GM growth 5Y2.95%
AROC Yearly Profit, Operating, Gross MarginsAROC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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1

2. AROC Health Analysis

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 remains at a similar level compared to 1 year ago.
  • AROC has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AROC has been reduced compared to a year ago.
AROC Yearly Shares OutstandingAROC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
AROC Yearly Total Debt VS Total AssetsAROC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 1.40, we must say that AROC is in the distress zone and has some risk of bankruptcy.
  • AROC's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. AROC is outperformed by 72.13% of its industry peers.
  • The Debt to FCF ratio of AROC is 20.15, which is on the high side as it means it would take AROC, 20.15 years of fcf income to pay off all of its debts.
  • AROC's Debt to FCF ratio of 20.15 is on the low side compared to the rest of the industry. AROC is outperformed by 63.93% of its industry peers.
  • AROC has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
  • AROC's Debt to Equity ratio of 1.62 is on the low side compared to the rest of the industry. AROC is outperformed by 78.69% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Altman-Z 1.4
ROIC/WACC1.31
WACC7.96%
AROC Yearly LT Debt VS Equity VS FCFAROC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • AROC has a Current Ratio of 1.54. This is a normal value and indicates that AROC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of AROC (1.54) is worse than 68.85% of its industry peers.
  • A Quick Ratio of 0.99 indicates that AROC may have some problems paying its short term obligations.
  • AROC has a worse Quick ratio (0.99) than 75.41% of its industry peers.
Industry RankSector Rank
Current Ratio 1.54
Quick Ratio 0.99
AROC Yearly Current Assets VS Current LiabilitesAROC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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6

3. AROC Growth Analysis

3.1 Past

  • AROC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 78.10%, which is quite impressive.
  • The Earnings Per Share has been growing by 52.06% on average over the past years. This is a very strong growth
  • The Revenue has grown by 28.70% in the past year. This is a very strong growth!
  • AROC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.23% yearly.
EPS 1Y (TTM)78.1%
EPS 3Y84.04%
EPS 5Y52.06%
EPS Q2Q%97.06%
Revenue 1Y (TTM)28.7%
Revenue growth 3Y20.78%
Revenue growth 5Y11.23%
Sales Q2Q%15.52%

3.2 Future

  • The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
  • AROC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y6.57%
EPS Next 2Y8.42%
EPS Next 3Y11.16%
EPS Next 5Y12.34%
Revenue Next Year4.73%
Revenue Next 2Y5.07%
Revenue Next 3Y5.66%
Revenue Next 5Y4.93%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AROC Yearly Revenue VS EstimatesAROC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B 2.5B
AROC Yearly EPS VS EstimatesAROC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2 3

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4

4. AROC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.57, the valuation of AROC can be described as rather expensive.
  • 81.97% of the companies in the same industry are more expensive than AROC, based on the Price/Earnings ratio.
  • AROC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 18.37, which indicates a rather expensive current valuation of AROC.
  • AROC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROC is cheaper than 77.05% of the companies in the same industry.
  • AROC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.57
Fwd PE 18.37
AROC Price Earnings VS Forward Price EarningsAROC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AROC is on the same level as its industry peers.
  • AROC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AROC is more expensive than 62.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 53.61
EV/EBITDA 10.47
AROC Per share dataAROC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AROC does not grow enough to justify the current Price/Earnings ratio.
  • AROC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)0.38
EPS Next 2Y8.42%
EPS Next 3Y11.16%

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7

5. AROC Dividend Analysis

5.1 Amount

  • AROC has a Yearly Dividend Yield of 2.45%.
  • Compared to an average industry Dividend Yield of 0.99, AROC pays a better dividend. On top of this AROC pays more dividend than 85.25% of the companies listed in the same industry.
  • AROC's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.45%

5.2 History

  • On average, the dividend of AROC grows each year by 6.79%, which is quite nice.
  • AROC has been paying a dividend for at least 10 years, so it has a reliable track record.
  • As AROC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.79%
Div Incr Years3
Div Non Decr Years8
AROC Yearly Dividends per shareAROC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • AROC pays out 44.40% 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.
DP44.4%
EPS Next 2Y8.42%
EPS Next 3Y11.16%
AROC Yearly Income VS Free CF VS DividendAROC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M
AROC Dividend Payout.AROC Dividend Payout, showing the Payout Ratio.AROC Dividend Payout.PayoutRetained Earnings

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AROC Fundamentals: All Metrics, Ratios and Statistics

ARCHROCK INC

NYSE:AROC (4/13/2026, 10:28:14 AM)

36.6

+0.65 (+1.81%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners99.77%
Inst Owner Change0.01%
Ins Owners2.52%
Ins Owner Change0.31%
Market Cap6.41B
Revenue(TTM)1.49B
Net Income(TTM)318.95M
Analysts84
Price Target39.55 (8.06%)
Short Float %4.94%
Short Ratio4.88
Dividend
Industry RankSector Rank
Dividend Yield 2.45%
Yearly Dividend0.81
Dividend Growth(5Y)6.79%
DP44.4%
Div Incr Years3
Div Non Decr Years8
Ex-Date02-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)29.28%
Min EPS beat(2)-2.77%
Max EPS beat(2)61.34%
EPS beat(4)3
Avg EPS beat(4)16.7%
Min EPS beat(4)-2.77%
Max EPS beat(4)61.34%
EPS beat(8)5
Avg EPS beat(8)7.94%
EPS beat(12)7
Avg EPS beat(12)4.82%
EPS beat(16)9
Avg EPS beat(16)7.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)-0.88%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)2.33%
Revenue beat(8)3
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)-0.72%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)22.03%
PT rev (3m)23.32%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)3.92%
EPS NY rev (1m)4.06%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-1.85%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-1.67%
Valuation
Industry RankSector Rank
PE 19.57
Fwd PE 18.37
P/S 4.31
P/FCF 53.61
P/OCF 10.31
P/B 4.3
P/tB 5.25
EV/EBITDA 10.47
EPS(TTM)1.87
EY5.11%
EPS(NY)1.99
Fwd EY5.44%
FCF(TTM)0.68
FCFY1.87%
OCF(TTM)3.55
OCFY9.7%
SpS8.5
BVpS8.51
TBVpS6.97
PEG (NY)2.98
PEG (5Y)0.38
Graham Number18.92
Profitability
Industry RankSector Rank
ROA 7.33%
ROE 21.39%
ROCE 13.86%
ROIC 10.41%
ROICexc 10.42%
ROICexgc 11.14%
OM 38.62%
PM (TTM) 21.41%
GM 65.81%
FCFM 8.03%
ROA(3y)5.22%
ROA(5y)3.67%
ROE(3y)15.36%
ROE(5y)10.82%
ROIC(3y)8.56%
ROIC(5y)6.87%
ROICexc(3y)8.57%
ROICexc(5y)6.88%
ROICexgc(3y)8.95%
ROICexgc(5y)7.14%
ROCE(3y)11.39%
ROCE(5y)9.15%
ROICexgc growth 3Y35.78%
ROICexgc growth 5Y13.97%
ROICexc growth 3Y33.46%
ROICexc growth 5Y12.97%
OM growth 3Y31.75%
OM growth 5Y10.96%
PM growth 3Y61.64%
PM growth 5YN/A
GM growth 3Y9.31%
GM growth 5Y2.95%
F-Score9
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Debt/EBITDA 2.9
Cap/Depr 195.69%
Cap/Sales 33.73%
Interest Coverage 3.57
Cash Conversion 74.76%
Profit Quality 37.51%
Current Ratio 1.54
Quick Ratio 0.99
Altman-Z 1.4
F-Score9
WACC7.96%
ROIC/WACC1.31
Cap/Depr(3y)187.06%
Cap/Depr(5y)152.38%
Cap/Sales(3y)31.63%
Cap/Sales(5y)27.16%
Profit Quality(3y)30.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)78.1%
EPS 3Y84.04%
EPS 5Y52.06%
EPS Q2Q%97.06%
EPS Next Y6.57%
EPS Next 2Y8.42%
EPS Next 3Y11.16%
EPS Next 5Y12.34%
Revenue 1Y (TTM)28.7%
Revenue growth 3Y20.78%
Revenue growth 5Y11.23%
Sales Q2Q%15.52%
Revenue Next Year4.73%
Revenue Next 2Y5.07%
Revenue Next 3Y5.66%
Revenue Next 5Y4.93%
EBIT growth 1Y57.55%
EBIT growth 3Y59.13%
EBIT growth 5Y23.42%
EBIT Next Year62.14%
EBIT Next 3Y23.2%
EBIT Next 5Y16%
FCF growth 1Y69.56%
FCF growth 3YN/A
FCF growth 5Y-9.31%
OCF growth 1Y44.81%
OCF growth 3Y45.15%
OCF growth 5Y13.16%

ARCHROCK INC / AROC Fundamental Analysis FAQ

What is the fundamental rating for AROC stock?

ChartMill assigns a fundamental rating of 5 / 10 to AROC.


What is the valuation status of ARCHROCK INC (AROC) stock?

ChartMill assigns a valuation rating of 4 / 10 to ARCHROCK INC (AROC). This can be considered as Fairly Valued.


How profitable is ARCHROCK INC (AROC) stock?

ARCHROCK INC (AROC) has a profitability rating of 9 / 10.


How financially healthy is ARCHROCK INC?

The financial health rating of ARCHROCK INC (AROC) is 1 / 10.


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 44.4%.