ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
26.25 USD
+0.3 (+1.16%)
26.24 USD
-0.01 (-0.04%)
Taking everything into account, AROC scores 6 out of 10 in our fundamental rating. AROC was compared to 62 industry peers in the Energy Equipment & Services industry. AROC scores excellent on profitability, 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
In the past year AROC was profitable.
In the past year AROC had a positive cash flow from operations.
Of the past 5 years AROC 4 years were profitable.
In the past 5 years AROC always reported a positive cash flow from operatings.
1.2 Ratios
AROC has a better Return On Assets (5.95%) than 69.35% of its industry peers.
With an excellent Return On Equity value of 18.43%, AROC belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.15%, AROC is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
AROC had an Average Return On Invested Capital over the past 3 years of 6.45%. This is significantly below the industry average of 13.08%.
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
With an excellent Profit Margin value of 18.22%, AROC belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
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 98.39% of the companies in the same industry.
AROC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 64.00%, AROC belongs to the top 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 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.
The number of shares outstanding for AROC has been increased compared to 1 year ago.
The number of shares outstanding for AROC has been increased compared to 5 years ago.
Compared to 1 year ago, AROC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that AROC is in the distress zone and has some risk of bankruptcy.
AROC has a Altman-Z score of 0.93. This is in the lower half of the industry: AROC underperforms 77.42% 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 66.13% 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.
With a Debt to Equity ratio value of 1.80, AROC is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.93 |
ROIC/WACC1.08
WACC8.5%
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.
Looking at the Current ratio, with a value of 1.56, AROC is doing worse than 70.97% of the companies in the same industry.
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.
AROC has a worse Quick ratio (1.01) than 74.19% 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.
The Earnings Per Share has been growing slightly by 5.59% on average over the past years.
AROC shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.94%.
AROC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
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.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y52.84%
EPS Next 2Y35.98%
EPS Next 3Y34%
EPS Next 5Y22.67%
Revenue Next Year28.27%
Revenue Next 2Y16.92%
Revenue Next 3Y12.96%
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
The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of AROC.
AROC's Price/Earnings ratio is a bit cheaper when compared to the industry. AROC is cheaper than 72.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.77. AROC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.52, AROC is valued correctly.
Based on the Price/Forward Earnings ratio, AROC is valued cheaply inside the industry as 82.26% of the companies are valued more expensively.
AROC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AROC indicates a slightly more expensive valuation: AROC is more expensive than 72.58% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AROC indicates a slightly more expensive valuation: AROC is more expensive than 66.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 238.37 | ||
| EV/EBITDA | 9.38 |
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.
AROC's earnings are expected to grow with 34.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)3.05
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
AROC has a Yearly Dividend Yield of 3.26%.
Compared to an average industry Dividend Yield of 1.30, AROC pays a better dividend. On top of this AROC pays more dividend than 87.10% of the companies listed in the same industry.
AROC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of AROC has a limited annual growth rate of 3.62%.
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)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%
26.25
+0.3 (+1.16%)
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 Cap4.60B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (22.17%)
Short Float %4.91%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
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)0%
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)0.85%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 13.52 | ||
| P/S | 3.2 | ||
| P/FCF | 238.37 | ||
| P/OCF | 8.65 | ||
| P/B | 3.24 | ||
| P/tB | 4 | ||
| EV/EBITDA | 9.38 |
EPS(TTM)1.54
EY5.87%
EPS(NY)1.94
Fwd EY7.4%
FCF(TTM)0.11
FCFY0.42%
OCF(TTM)3.03
OCFY11.56%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.32
PEG (5Y)3.05
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 | 0.93 |
F-Score9
WACC8.5%
ROIC/WACC1.08
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 Year28.27%
Revenue Next 2Y16.92%
Revenue Next 3Y12.96%
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 17.05 and the Price/Book (PB) ratio is 3.24.
Can you provide the financial health for AROC stock?
The financial health rating of ARCHROCK INC (AROC) is 2 / 10.