ARCHROCK INC (AROC) Fundamental Analysis & Valuation

NYSE:AROC • US03957W1062

Current stock price

37.33 USD
+1.14 (+3.15%)
At close:
37.31 USD
-0.02 (-0.05%)
After Hours:

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

  • In the past year AROC was profitable.
  • In the past year AROC had a positive cash flow from operations.
  • In the past 5 years AROC has always been profitable.
  • 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

  • AROC has a Return On Assets of 7.33%. This is amongst the best in the industry. AROC outperforms 85.48% of its industry peers.
  • AROC's Return On Equity of 21.39% is amongst the best of the industry. AROC outperforms 90.32% of its industry peers.
  • The Return On Invested Capital of AROC (10.41%) is better than 83.87% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AROC is below the industry average of 13.08%.
  • The 3 year average ROIC (8.56%) for AROC is below the current ROIC(10.41%), indicating increased profibility in the last year.
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

  • AROC has a better Profit Margin (21.41%) than 96.77% of its industry peers.
  • 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.
  • The Gross Margin of AROC (65.81%) is better than 96.77% of its industry peers.
  • 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

  • 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 about the same amount of shares outstanding.
  • AROC has more shares outstanding than it did 5 years ago.
  • AROC has a better debt/assets ratio than last year.
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

  • AROC has an Altman-Z score of 1.41. 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 1.41. This is in the lower half of the industry: AROC underperforms 67.74% 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.
  • Looking at the Debt to FCF ratio, with a value of 20.15, AROC is doing worse than 62.90% of the companies in the same industry.
  • AROC has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
  • AROC has a Debt to Equity ratio of 1.62. This is in the lower half of the industry: AROC underperforms 77.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Altman-Z 1.41
ROIC/WACC1.3
WACC8.01%
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

  • A Current Ratio of 1.54 indicates that AROC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.54, AROC is doing worse than 67.74% of the companies in the same industry.
  • AROC has a Quick Ratio of 1.54. This is a bad value and indicates that AROC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.99, AROC is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
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.
  • Measured over the past years, AROC shows a very strong growth in Earnings Per Share. The EPS has been growing by 52.06% on average per year.
  • Looking at the last year, AROC shows a very strong growth in Revenue. The Revenue has grown by 28.70%.
  • Measured over the past years, AROC shows a quite strong growth in Revenue. The Revenue has been growing by 11.23% on average per year.
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.
  • The Revenue is expected to grow by 4.93% on average over the next years.
EPS Next Y6.57%
EPS Next 2Y8.42%
EPS Next 3Y11.16%
EPS Next 5Y12.34%
Revenue Next Year4.87%
Revenue Next 2Y5.07%
Revenue Next 3Y5.64%
Revenue Next 5Y4.93%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • AROC is valuated rather expensively with a Price/Earnings ratio of 19.96.
  • 80.65% of the companies in the same industry are more expensive than AROC, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of AROC to the average of the S&P500 Index (27.42), we can say AROC is valued slightly cheaper.
  • AROC is valuated rather expensively with a Price/Forward Earnings ratio of 18.73.
  • Based on the Price/Forward Earnings ratio, AROC is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. AROC is around the same levels.
Industry RankSector Rank
PE 19.96
Fwd PE 18.73
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.
  • 61.29% of the companies in the same industry are cheaper than AROC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 54.68
EV/EBITDA 10.52
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 an expensive valuation of the company.
  • AROC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)0.38
EPS Next 2Y8.42%
EPS Next 3Y11.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. AROC Dividend Analysis

5.1 Amount

  • AROC has a Yearly Dividend Yield of 2.43%.
  • Compared to an average industry Dividend Yield of 0.98, AROC pays a better dividend. On top of this AROC pays more dividend than 85.48% of the companies listed in the same industry.
  • AROC's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • The dividend of AROC is nicely growing with an annual growth rate of 6.79%!
  • 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)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.
  • AROC's earnings are growing more than its dividend. This makes the dividend growth 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 (4/24/2026, 8:21:43 PM)

After market: 37.31 -0.02 (-0.05%)

37.33

+1.14 (+3.15%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)02-24
Earnings (Next)05-11
Inst Owners99.77%
Inst Owner Change0.08%
Ins Owners2.52%
Ins Owner Change0.31%
Market Cap6.54B
Revenue(TTM)1.49B
Net Income(TTM)318.95M
Analysts84
Price Target39.55 (5.95%)
Short Float %4.34%
Short Ratio4.2
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
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)-2.11%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)4.06%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-1.66%
Valuation
Industry RankSector Rank
PE 19.96
Fwd PE 18.73
P/S 4.39
P/FCF 54.68
P/OCF 10.52
P/B 4.39
P/tB 5.35
EV/EBITDA 10.52
EPS(TTM)1.87
EY5.01%
EPS(NY)1.99
Fwd EY5.34%
FCF(TTM)0.68
FCFY1.83%
OCF(TTM)3.55
OCFY9.51%
SpS8.5
BVpS8.51
TBVpS6.97
PEG (NY)3.04
PEG (5Y)0.38
Graham Number18.9231 (-49.31%)
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 1.41
F-Score9
WACC8.01%
ROIC/WACC1.3
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 Year4.87%
Revenue Next 2Y5.07%
Revenue Next 3Y5.64%
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 3 / 10 to ARCHROCK INC (AROC). This can be considered as Overvalued.


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%.