ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
25.2 USD
-0.21 (-0.83%)
25.1817 USD
-0.02 (-0.07%)
Overall AROC gets a fundamental rating of 6 out of 10. We evaluated AROC against 60 industry peers in the Energy Equipment & Services industry. AROC has an excellent profitability rating, but there are concerns on its financial health. AROC is growing strongly while it is still valued neutral. This is a good combination! Finally AROC also has an excellent dividend rating.
1. Profitability
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 4 of the past 5 years.
AROC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AROC (5.95%) is better than 70.00% of its industry peers.
AROC's Return On Equity of 18.43% is amongst the best of the industry. AROC outperforms 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.15%, AROC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AROC is in line with the industry average of 7.35%.
The last Return On Invested Capital (9.15%) for AROC is above the 3 year average (6.45%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 18.22%. This is amongst the best in the industry. AROC outperforms 98.33% 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 98.33% of the companies in the same industry.
In the last couple of years the Operating Margin of AROC has grown nicely.
With an excellent Gross Margin value of 64.00%, AROC belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
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
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 has been increased compared to 1 year ago.
AROC has more shares outstanding than it did 5 years ago.
AROC has a better debt/assets ratio than last year.
2.2 Solvency
AROC has an Altman-Z score of 0.89. 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 0.89. This is in the lower half of the industry: AROC underperforms 78.33% of its industry peers.
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 66.67% 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 worse Debt to Equity ratio (1.80) than 88.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.89 |
ROIC/WACC1.1
WACC8.31%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AROC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.56, AROC is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
AROC has a Quick Ratio of 1.01. This is a normal value and indicates that AROC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AROC (1.01) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.39% over the past year.
AROC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.59% yearly.
The Revenue has grown by 31.94% in the past year. This is a very strong growth!
Measured over the past years, AROC shows a small growth in Revenue. The Revenue has been growing by 3.70% on average per year.
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
Based on estimates for the next years, AROC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.67% on average per year.
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 Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue Next Year28.35%
Revenue Next 2Y17.07%
Revenue Next 3Y9.53%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.36, which indicates a correct valuation of AROC.
Based on the Price/Earnings ratio, AROC is valued a bit cheaper than 71.67% 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 26.26.
Based on the Price/Forward Earnings ratio of 12.98, the valuation of AROC can be described as correct.
Based on the Price/Forward Earnings ratio, AROC is valued a bit cheaper than 78.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AROC to the average of the S&P500 Index (23.68), we can say AROC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
AROC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AROC is more expensive than 75.00% of the companies in the same industry.
AROC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AROC is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 228.84 | ||
| EV/EBITDA | 9.14 |
4.3 Compensation for Growth
AROC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AROC has an outstanding profitability rating, which may justify a higher PE ratio.
AROC's earnings are expected to grow with 34.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)2.93
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
AROC has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
AROC's Dividend Yield is rather good when compared to the industry average which is at 1.28. AROC pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, AROC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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.
As AROC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)3.62%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
AROC pays out 51.65% 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.
DP51.65%
EPS Next 2Y35.98%
EPS Next 3Y34%
25.2
-0.21 (-0.83%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners98.68%
Inst Owner Change2.32%
Ins Owners2.7%
Ins Owner Change-0.07%
Market Cap4.42B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (27.26%)
Short Float %4.46%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend0.67
Dividend Growth(5Y)3.62%
DP51.65%
Div Incr Years2
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.24%
Min EPS beat(2)-2.77%
Max EPS beat(2)3.25%
EPS beat(4)3
Avg EPS beat(4)3.98%
Min EPS beat(4)-2.77%
Max EPS beat(4)10.45%
EPS beat(8)4
Avg EPS beat(8)-0.17%
EPS beat(12)7
Avg EPS beat(12)0.72%
EPS beat(16)9
Avg EPS beat(16)11.11%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)6
Avg Revenue beat(12)-0.47%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.17%
PT rev (3m)2.17%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0.21%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 12.98 | ||
| P/S | 3.07 | ||
| P/FCF | 228.84 | ||
| P/OCF | 8.31 | ||
| P/B | 3.11 | ||
| P/tB | 3.84 | ||
| EV/EBITDA | 9.14 |
EPS(TTM)1.54
EY6.11%
EPS(NY)1.94
Fwd EY7.7%
FCF(TTM)0.11
FCFY0.44%
OCF(TTM)3.03
OCFY12.04%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.31
PEG (5Y)2.93
Graham Number16.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 18.43% | ||
| ROCE | 12.37% | ||
| ROIC | 9.15% | ||
| ROICexc | 9.16% | ||
| ROICexgc | 9.79% | ||
| OM | 36.11% | ||
| PM (TTM) | 18.22% | ||
| GM | 64% | ||
| FCFM | 1.34% |
ROA(3y)3.33%
ROA(5y)1.7%
ROE(3y)9.89%
ROE(5y)5.05%
ROIC(3y)6.45%
ROIC(5y)5.83%
ROICexc(3y)6.45%
ROICexc(5y)5.83%
ROICexgc(3y)6.61%
ROICexgc(5y)5.97%
ROCE(3y)8.72%
ROCE(5y)7.88%
ROICexgc growth 3Y21.54%
ROICexgc growth 5Y7.48%
ROICexc growth 3Y20.63%
ROICexc growth 5Y7.9%
OM growth 3Y20.43%
OM growth 5Y8.34%
PM growth 3Y61.88%
PM growth 5Y8.11%
GM growth 3Y3.75%
GM growth 5Y2.75%
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Debt/EBITDA | 3.36 | ||
| Cap/Depr | 210.77% | ||
| Cap/Sales | 35.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.73% | ||
| Profit Quality | 7.37% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.89 |
F-Score9
WACC8.31%
ROIC/WACC1.1
Cap/Depr(3y)170.5%
Cap/Depr(5y)127.77%
Cap/Sales(3y)29.85%
Cap/Sales(5y)23.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.39%
EPS 3Y76.8%
EPS 5Y5.59%
EPS Q2Q%81.82%
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue 1Y (TTM)31.94%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%30.9%
Revenue Next Year28.35%
Revenue Next 2Y17.07%
Revenue Next 3Y9.53%
Revenue Next 5Y10.34%
EBIT growth 1Y57.38%
EBIT growth 3Y37.29%
EBIT growth 5Y12.34%
EBIT Next Year125.71%
EBIT Next 3Y36.23%
EBIT Next 5Y24.24%
FCF growth 1Y134.97%
FCF growth 3Y-20.33%
FCF growth 5YN/A
OCF growth 1Y93.03%
OCF growth 3Y21.86%
OCF growth 5Y8.17%
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 for 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.
What are the PE and PB ratios of ARCHROCK INC (AROC) stock?
The Price/Earnings (PE) ratio for ARCHROCK INC (AROC) is 16.36 and the Price/Book (PB) ratio is 3.11.
Can you provide the financial health for AROC stock?
The financial health rating of ARCHROCK INC (AROC) is 2 / 10.