ARCHROCK INC (AROC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AROC • US03957W1062
29.415 USD
-0.18 (-0.59%)
Last: Feb 2, 2026, 09:53 AM
Overall AROC gets a fundamental rating of 6 out of 10. We evaluated AROC against 61 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. AROC is not priced too expensively while it is growing strongly. 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.
- Each year in the past 5 years AROC had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AROC (5.95%) is better than 73.77% of its industry peers.
- AROC's Return On Equity of 18.43% is amongst the best of the industry. AROC outperforms 91.80% of its industry peers.
- The Return On Invested Capital of AROC (9.15%) is better than 72.13% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AROC is significantly below the industry average of 12.88%.
- The 3 year average ROIC (6.45%) for AROC is below the current ROIC(9.15%), indicating increased profibility in the last year.
| 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's Profit Margin of 18.22% is amongst the best of the industry. AROC outperforms 96.72% of its industry peers.
- AROC's Profit Margin has improved in the last couple of years.
- 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's Gross Margin of 64.00% 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 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AROC is still creating some value.
- AROC has more shares outstanding than it did 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.
2.2 Solvency
- Based on the Altman-Z score of 1.05, we must say that AROC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.05, AROC is not doing good in the industry: 72.13% of the companies in the same industry are doing better.
- 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.
- AROC has a worse Debt to FCF ratio (132.56) than 63.93% 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 Debt to Equity ratio of 1.80. This is amonst the worse of the industry: AROC underperforms 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.09
WACC8.41%
2.3 Liquidity
- AROC has a Current Ratio of 1.56. 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 Current ratio (1.56) than 68.85% of its industry peers.
- A Quick Ratio of 1.01 indicates that AROC should not have too much problems paying its short term obligations.
- AROC has a Quick ratio of 1.01. This is in the lower half of the industry: AROC underperforms 72.13% 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.
- Measured over the past 5 years, AROC shows a small growth in Earnings Per Share. The EPS has been growing by 5.59% on average per year.
- The Revenue has grown by 31.94% in the past year. This is a very strong growth!
- The Revenue has been growing slightly by 3.70% on average over the past years.
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 Y52.03%
EPS Next 2Y35.15%
EPS Next 3Y27.39%
EPS Next 5Y22.67%
Revenue Next Year28.35%
Revenue Next 2Y16.99%
Revenue Next 3Y13.09%
Revenue Next 5Y10.34%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.10 indicates a rather expensive valuation of AROC.
- Based on the Price/Earnings ratio, AROC is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of AROC to the average of the S&P500 Index (28.32), we can say AROC is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 15.34, AROC is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AROC indicates a rather cheap valuation: AROC is cheaper than 81.97% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, AROC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AROC is valued a bit more expensive than the industry average as 68.85% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, AROC is valued a bit more expensive than the industry average as 63.93% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 267.12 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
- The 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 27.39% in the coming years.
PEG (NY)0.37
PEG (5Y)3.42
EPS Next 2Y35.15%
EPS Next 3Y27.39%
5. Dividend
5.1 Amount
- AROC has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.12, AROC pays a better dividend. On top of this AROC pays more dividend than 88.52% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, AROC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
- The dividend of AROC has a limited annual growth rate of 3.62%.
- AROC has been paying a dividend for at least 10 years, so it has 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
- 51.65% of the earnings are spent on dividend by AROC. 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.
DP51.65%
EPS Next 2Y35.15%
EPS Next 3Y27.39%
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 5 / 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 19.1 and the Price/Book (PB) ratio is 3.63.
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%.