ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AROC - US03957W1062 - Common Stock
26.47 USD
+0.29 (+1.11%)
26.47 USD
0 (0%)
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 not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
- Each year in the past 5 years AROC had a positive operating cash flow.
1.2 Ratios
- AROC has a better Return On Assets (5.95%) than 72.58% of its industry peers.
- AROC has a Return On Equity of 18.43%. This is amongst the best in the industry. AROC outperforms 91.94% of its industry peers.
- With a decent Return On Invested Capital value of 9.15%, AROC is doing good in the industry, outperforming 72.58% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AROC is significantly below the industry average of 12.77%.
- 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 96.77% 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.
- 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.
- In the last couple of years the Gross Margin of AROC has grown nicely.
| 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.
- AROC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AROC has been increased compared to 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 0.93, we must say that AROC is in the distress zone and has some risk of bankruptcy.
- AROC has a worse Altman-Z score (0.93) than 75.81% 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 Debt to FCF ratio of 132.56. This is in the lower half of the industry: AROC underperforms 64.52% 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.
- The Debt to Equity ratio of AROC (1.80) is worse than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.93 |
ROIC/WACC1.09
WACC8.42%
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 69.35% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 1.01, AROC is doing worse than 72.58% of the companies in the same industry.
| 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.
- Looking at the last year, AROC shows a very strong growth in Revenue. The Revenue has grown by 31.94%.
- 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.
- 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
- A Price/Earnings ratio of 17.19 indicates a rather expensive valuation of AROC.
- Based on the Price/Earnings ratio, AROC is valued a bit cheaper than 77.42% of the companies in the same industry.
- When comparing the Price/Earnings ratio of AROC to the average of the S&P500 Index (27.47), we can say AROC is valued slightly cheaper.
- AROC is valuated correctly with a Price/Forward Earnings ratio of 13.63.
- 88.71% of the companies in the same industry are more expensive than AROC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AROC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
- 66.13% of the companies in the same industry are cheaper than AROC, based on the Enterprise Value to EBITDA ratio.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 240.37 | ||
| EV/EBITDA | 9.37 |
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.
- 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)0.33
PEG (5Y)3.08
EPS Next 2Y35.98%
EPS Next 3Y34%
5. Dividend
5.1 Amount
- AROC has a Yearly Dividend Yield of 3.22%.
- AROC's Dividend Yield is rather good when compared to the industry average which is at 1.21. AROC pays more dividend than 88.71% of the companies in the same industry.
- AROC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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.
- 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%
26.47
+0.29 (+1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners98.99%
Inst Owner Change0.11%
Ins Owners2.7%
Ins Owner Change-0.07%
Market Cap4.64B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target32.07 (21.16%)
Short Float %4.91%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend0.67
Dividend Growth(5Y)3.62%
DP51.65%
Div Incr Years2
Div Non Decr Years7
Ex-DateN/A
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%
EPS NQ rev (3m)1.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 13.63 | ||
| P/S | 3.23 | ||
| P/FCF | 240.37 | ||
| P/OCF | 8.73 | ||
| P/B | 3.26 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)1.54
EY5.82%
EPS(NY)1.94
Fwd EY7.33%
FCF(TTM)0.11
FCFY0.42%
OCF(TTM)3.03
OCFY11.46%
SpS8.21
BVpS8.11
TBVpS6.56
PEG (NY)0.33
PEG (5Y)3.08
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
WACC8.42%
ROIC/WACC1.09
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 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 17.19 and the Price/Book (PB) ratio is 3.26.
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%.