ARCHROCK INC (AROC) Fundamental Analysis & Valuation

NYSE:AROC • US03957W1062

Current stock price

37.99 USD
+0.6 (+1.6%)
At close:
38.73 USD
+0.74 (+1.95%)
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

  • AROC had positive earnings in the past year.
  • 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 85.48% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 21.39%, AROC belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 10.41%, AROC belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AROC is in line with the industry average of 6.92%.
  • 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 Profit Margin of 21.41%. 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.
  • The Operating Margin of AROC (38.62%) is better than 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of AROC has grown nicely.
  • Looking at the Gross Margin, with a value of 65.81%, AROC belongs to the top of the industry, outperforming 96.77% 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The number of shares outstanding for AROC remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, AROC has more shares outstanding
  • 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

  • AROC has an Altman-Z score of 1.48. This is a bad value and indicates that AROC is not financially healthy and even has some risk of bankruptcy.
  • AROC's Altman-Z score of 1.48 is on the low side compared to the rest of the industry. AROC is outperformed by 64.52% 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 64.52% 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 amonst the worse of the industry: AROC underperforms 80.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Altman-Z 1.48
ROIC/WACC1.3
WACC8.03%
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.
  • AROC's Current ratio of 1.54 is on the low side compared to the rest of the industry. AROC is outperformed by 72.58% of its industry peers.
  • A Quick Ratio of 0.99 indicates that AROC may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.99, AROC is doing worse than 75.81% of the companies in the same industry.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • 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.
  • AROC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.70%.
  • 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

  • Based on estimates for the next years, AROC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.92% on average per year.
  • The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y6.57%
EPS Next 2Y8.42%
EPS Next 3Y11.16%
EPS Next 5Y11.92%
Revenue Next Year4.87%
Revenue Next 2Y5.07%
Revenue Next 3Y5.64%
Revenue Next 5Y4.86%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

3

4. AROC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.32, the valuation of AROC can be described as rather expensive.
  • Based on the Price/Earnings ratio, AROC is valued cheaply inside the industry as 82.26% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of AROC to the average of the S&P500 Index (26.91), we can say AROC is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 19.06, AROC is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, AROC is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. AROC is around the same levels.
Industry RankSector Rank
PE 20.32
Fwd PE 19.06
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.
  • 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 RankSector Rank
P/FCF 55.65
EV/EBITDA 10.9
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)3.09
PEG (5Y)0.39
EPS Next 2Y8.42%
EPS Next 3Y11.16%

More info and screens

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%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.93, AROC pays a better dividend. On top of this AROC pays more dividend than 85.48% 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 2.43%

5.2 History

  • On average, the dividend of AROC grows each year by 6.79%, which is quite nice.
  • AROC has paid a dividend for at least 10 years, which is 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

More info and screens

Find the best dividend stocksShow peers with best dividend

AROC Fundamentals: All Metrics, Ratios and Statistics

ARCHROCK INC

NYSE:AROC (4/28/2026, 8:13:29 PM)

After market: 38.73 +0.74 (+1.95%)

37.99

+0.6 (+1.6%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Industry Strength93.17
Industry Growth46.58
Earnings (Last)02-24
Earnings (Next)05-05
Inst Owners99.77%
Inst Owner Change0.11%
Ins Owners2.52%
Ins Owner Change0.31%
Market Cap6.66B
Revenue(TTM)1.49B
Net Income(TTM)318.95M
Analysts84
Price Target39.55 (4.11%)
Short Float %4.1%
Short Ratio4.3
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)-0.84%
EPS NQ rev (3m)2.46%
EPS NY rev (1m)4.06%
EPS NY rev (3m)3.92%
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 20.32
Fwd PE 19.06
P/S 4.47
P/FCF 55.65
P/OCF 10.7
P/B 4.46
P/tB 5.45
EV/EBITDA 10.9
EPS(TTM)1.87
EY4.92%
EPS(NY)1.99
Fwd EY5.25%
FCF(TTM)0.68
FCFY1.8%
OCF(TTM)3.55
OCFY9.34%
SpS8.5
BVpS8.51
TBVpS6.97
PEG (NY)3.09
PEG (5Y)0.39
Graham Number18.9231 (-50.19%)
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 1.48
F-Score9
WACC8.03%
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 5Y11.92%
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 5Y4.86%
EBIT growth 1Y57.55%
EBIT growth 3Y59.13%
EBIT growth 5Y23.42%
EBIT Next Year62.14%
EBIT Next 3Y23.2%
EBIT Next 5Y15.9%
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%.