ARCHROCK INC (AROC) Fundamental Analysis & Valuation

NYSE:AROC • US03957W1062

35.32 USD
-0.48 (-1.34%)
At close: Mar 6, 2026
35.01 USD
-0.31 (-0.88%)
After Hours: 3/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Overall AROC gets a fundamental rating of 5 out of 10. We evaluated AROC against 60 industry peers in the Energy Equipment & Services industry. While AROC belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AROC is valued expensive at the moment. Finally AROC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

9

1. AROC Profitability Analysis

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 each of the past 5 years.
  • Each year in the past 5 years AROC had a positive operating cash flow.
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 86.67% of the companies in the same industry.
  • AROC has a better Return On Equity (21.39%) than 91.67% of its industry peers.
  • AROC has a Return On Invested Capital of 10.41%. This is amongst the best in the industry. AROC outperforms 81.67% 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 13.22%.
  • 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

  • The Profit Margin of AROC (21.41%) is better than 98.33% of its industry peers.
  • In the last couple of years the Profit Margin of AROC has grown nicely.
  • AROC has a better Operating Margin (38.62%) than 100.00% of its industry peers.
  • AROC's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 65.81%, AROC belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AROC has grown nicely.
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.
  • The number of shares outstanding for AROC has been increased compared to 5 years ago.
  • Compared to 1 year ago, AROC has an improved debt to assets ratio.
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.
  • The Altman-Z score of AROC (1.40) is worse than 68.33% of its industry peers.
  • AROC has a debt to FCF ratio of 20.15. This is a negative value and a sign of low solvency as AROC would need 20.15 years to pay back of 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 65.00% of its industry peers.
  • A Debt/Equity ratio of 1.62 is on the high side and indicates that AROC has dependencies on debt financing.
  • AROC has a Debt to Equity ratio of 1.62. This is amonst the worse of the industry: AROC underperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Altman-Z 1.4
ROIC/WACC1.21
WACC8.62%
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.
  • With a Current ratio value of 1.54, AROC is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
  • 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 73.33% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. AROC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 78.10% over the past year.
  • AROC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 52.06% yearly.
  • The Revenue has grown by 28.70% in the past year. This is a very strong growth!
  • The Revenue has been growing by 11.23% on average over the past years. This is quite good.
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

  • AROC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.34% yearly.
  • Based on estimates for the next years, AROC will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y2.41%
EPS Next 2Y8.31%
EPS Next 3Y11.02%
EPS Next 5Y12.34%
Revenue Next Year5.13%
Revenue Next 2Y5.28%
Revenue Next 3Y5.54%
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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3

4. AROC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.89, AROC is valued on the expensive side.
  • Based on the Price/Earnings ratio, AROC is valued a bit cheaper than 78.33% of the companies in the same industry.
  • AROC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • AROC is valuated rather expensively with a Price/Forward Earnings ratio of 18.44.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AROC indicates a somewhat cheap valuation: AROC is cheaper than 68.33% of the companies listed in the same industry.
  • AROC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.89
Fwd PE 18.44
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

  • 63.33% of the companies in the same industry are cheaper than AROC, based on the Enterprise Value to EBITDA ratio.
  • 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 65.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 51.65
EV/EBITDA 10.42
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.
  • The excellent profitability rating of AROC may justify a higher PE ratio.
PEG (NY)7.84
PEG (5Y)0.36
EPS Next 2Y8.31%
EPS Next 3Y11.02%

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7

5. AROC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.38%, AROC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.04, AROC pays a better dividend. On top of this AROC pays more dividend than 83.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, AROC pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.38%

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 Years2
Div Non Decr Years7
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

  • 44.40% 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.
DP44.4%
EPS Next 2Y8.31%
EPS Next 3Y11.02%
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 (3/6/2026, 8:04:00 PM)

After market: 35.01 -0.31 (-0.88%)

35.32

-0.48 (-1.34%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-24
Earnings (Next)05-04
Inst Owners98.99%
Inst Owner Change-0.26%
Ins Owners2.7%
Ins Owner Change0.97%
Market Cap6.18B
Revenue(TTM)1.49B
Net Income(TTM)318.95M
Analysts84
Price Target32.41 (-8.24%)
Short Float %4.81%
Short Ratio5.13
Dividend
Industry RankSector Rank
Dividend Yield 2.38%
Yearly Dividend0.81
Dividend Growth(5Y)6.79%
DP44.4%
Div Incr Years2
Div Non Decr Years7
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)1.06%
PT rev (3m)1.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 18.89
Fwd PE 18.44
P/S 4.15
P/FCF 51.65
P/OCF 9.93
P/B 4.14
P/tB 5.06
EV/EBITDA 10.42
EPS(TTM)1.87
EY5.29%
EPS(NY)1.92
Fwd EY5.42%
FCF(TTM)0.68
FCFY1.94%
OCF(TTM)3.56
OCFY10.07%
SpS8.52
BVpS8.53
TBVpS6.99
PEG (NY)7.84
PEG (5Y)0.36
Graham Number18.94
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
WACC8.62%
ROIC/WACC1.21
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 Y2.41%
EPS Next 2Y8.31%
EPS Next 3Y11.02%
EPS Next 5Y12.34%
Revenue 1Y (TTM)28.7%
Revenue growth 3Y20.78%
Revenue growth 5Y11.23%
Sales Q2Q%15.52%
Revenue Next Year5.13%
Revenue Next 2Y5.28%
Revenue Next 3Y5.54%
Revenue Next 5Y4.93%
EBIT growth 1Y57.55%
EBIT growth 3Y59.13%
EBIT growth 5Y23.42%
EBIT Next Year61.76%
EBIT Next 3Y22.97%
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 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 3 / 10 to ARCHROCK INC (AROC). This can be considered as Overvalued.


What is the profitability of AROC stock?

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


Can you provide the PE and PB ratios for AROC stock?

The Price/Earnings (PE) ratio for ARCHROCK INC (AROC) is 18.89 and the Price/Book (PB) ratio is 4.14.


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%.