ARCHROCK INC (AROC) Fundamental Analysis & Valuation

NYSE:AROC • US03957W1062

Current stock price

35.19 USD
-0.68 (-1.9%)
At close:
35.18 USD
-0.01 (-0.03%)
Pre-Market:

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.
  • AROC had a positive operating cash flow in the past year.
  • In the past 5 years AROC has always been profitable.
  • 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

  • AROC's Return On Assets of 7.33% is amongst the best of 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 13.21%.
  • 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

  • AROC has a better Profit Margin (21.41%) than 96.77% of its industry peers.
  • AROC's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 38.62%, 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.
  • With an excellent Gross Margin value of 65.81%, AROC belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
  • AROC's Gross Margin has improved in the last couple of years.
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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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.
  • 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.
  • 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 1.38, we must say that AROC is in the distress zone and has some risk of bankruptcy.
  • AROC has a worse Altman-Z score (1.38) than 70.97% 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.
  • The Debt to FCF ratio of AROC (20.15) is worse than 62.90% of its industry peers.
  • AROC has a Debt/Equity ratio of 1.62. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.62, AROC is doing worse than 77.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.62
Debt/FCF 20.15
Altman-Z 1.38
ROIC/WACC1.32
WACC7.91%
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.
  • The Current ratio of AROC (1.54) is worse than 67.74% 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 74.19% 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

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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.
  • The Earnings Per Share has been growing by 52.06% on average over the past years. This is a very strong growth
  • 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

  • The Earnings Per Share is expected to grow by 12.34% on average over the next years. This is quite good.
  • 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 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

  • 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

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4

4. AROC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 18.82 indicates a rather expensive valuation of AROC.
  • 80.65% of the companies in the same industry are more expensive than AROC, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.71, AROC is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.66, which indicates a rather expensive current valuation of AROC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AROC indicates a somewhat cheap valuation: AROC is cheaper than 77.42% of the companies listed in the same industry.
  • AROC is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.09, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.82
Fwd PE 17.66
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as AROC.
  • Based on the Price/Free Cash Flow ratio, AROC is valued a bit more expensive than 61.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 51.55
EV/EBITDA 10.31
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)2.87
PEG (5Y)0.36
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%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.99, 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 (4/21/2026, 8:26:24 PM)

Premarket: 35.18 -0.01 (-0.03%)

35.19

-0.68 (-1.9%)

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 Cap6.17B
Revenue(TTM)1.49B
Net Income(TTM)318.95M
Analysts84
Price Target39.55 (12.39%)
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 18.82
Fwd PE 17.66
P/S 4.14
P/FCF 51.55
P/OCF 9.91
P/B 4.13
P/tB 5.05
EV/EBITDA 10.31
EPS(TTM)1.87
EY5.31%
EPS(NY)1.99
Fwd EY5.66%
FCF(TTM)0.68
FCFY1.94%
OCF(TTM)3.55
OCFY10.09%
SpS8.5
BVpS8.51
TBVpS6.97
PEG (NY)2.87
PEG (5Y)0.36
Graham Number18.9231 (-46.23%)
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 1.38
F-Score9
WACC7.91%
ROIC/WACC1.32
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 4 / 10 to ARCHROCK INC (AROC). This can be considered as Fairly Valued.


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%.