ARCHROCK INC (AROC) Stock Fundamental Analysis
USA - NYSE:AROC - US03957W1062 - Common Stock
24.58 USD
-0.23 (-0.93%)
24.58 USD
0 (0%)
Taking everything into account, AROC scores 6 out of 10 in our fundamental rating. AROC was compared to 60 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 showing excellent growth while it is valued at reasonable prices. 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.
AROC had a positive operating cash flow in the past year.
AROC had positive earnings in 4 of the past 5 years.
In the past 5 years AROC always reported a positive cash flow from operatings.
1.2 Ratios
AROC has a Return On Assets of 5.95%. This is in the better half of the industry: AROC outperforms 71.67% of its industry peers.
With an excellent Return On Equity value of 18.43%, AROC belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
The Return On Invested Capital of AROC (9.15%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AROC is in line with the industry average of 7.79%.
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
Looking at the Profit Margin, with a value of 18.22%, AROC belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
AROC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 36.11%, AROC belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
AROC's Operating Margin has improved in the last couple of years.
The Gross Margin of AROC (64.00%) is better than 96.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AROC is creating some value.
Compared to 1 year ago, AROC has more shares outstanding
Compared to 5 years ago, AROC has more shares outstanding
The debt/assets ratio for AROC has been reduced compared to a year ago.
2.2 Solvency
AROC has an Altman-Z score of 0.87. This is a bad value and indicates that AROC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AROC (0.87) is worse than 75.00% 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's Debt to FCF ratio of 132.56 is on the low side compared to the rest of the industry. AROC is outperformed by 68.33% of its industry peers.
AROC has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
AROC has a Debt to Equity ratio of 1.80. This is amonst the worse of the industry: AROC underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 132.56 | ||
| Altman-Z | 0.87 |
ROIC/WACC1.09
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.56 indicates that AROC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.56, AROC is doing worse than 70.00% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that AROC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, AROC is doing worse than 78.33% of the companies in the same industry.
| 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.
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%.
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
The Earnings Per Share is expected to grow by 22.67% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y52.51%
EPS Next 2Y35.78%
EPS Next 3Y27.69%
EPS Next 5Y22.67%
Revenue Next Year28.35%
Revenue Next 2Y16.96%
Revenue Next 3Y10.78%
Revenue Next 5Y10.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
AROC is valuated correctly with a Price/Earnings ratio of 15.96.
Compared to the rest of the industry, the Price/Earnings ratio of AROC indicates a somewhat cheap valuation: AROC is cheaper than 68.33% of the companies listed in the same industry.
AROC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
AROC is valuated correctly with a Price/Forward Earnings ratio of 12.70.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AROC indicates a somewhat cheap valuation: AROC is cheaper than 78.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. AROC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than AROC, based on the Enterprise Value to EBITDA ratio.
66.67% of the companies in the same industry are cheaper than AROC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 223.78 | ||
| EV/EBITDA | 9.01 |
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.
AROC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AROC's earnings are expected to grow with 27.69% in the coming years.
PEG (NY)0.3
PEG (5Y)2.86
EPS Next 2Y35.78%
EPS Next 3Y27.69%
5. Dividend
5.1 Amount
AROC has a Yearly Dividend Yield of 3.39%.
AROC's Dividend Yield is rather good when compared to the industry average which is at 2.89. AROC pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, AROC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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.
The dividend of AROC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP51.65%
EPS Next 2Y35.78%
EPS Next 3Y27.69%
24.58
-0.23 (-0.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.74%
Inst Owner Change-1.37%
Ins Owners2.71%
Ins Owner Change0.04%
Market Cap4.32B
Revenue(TTM)1.44B
Net Income(TTM)262.17M
Analysts84
Price Target31.39 (27.71%)
Short Float %4.23%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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)-0.31%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 12.7 | ||
| P/S | 3 | ||
| P/FCF | 223.78 | ||
| P/OCF | 8.12 | ||
| P/B | 3.04 | ||
| P/tB | 3.76 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)1.54
EY6.27%
EPS(NY)1.94
Fwd EY7.88%
FCF(TTM)0.11
FCFY0.45%
OCF(TTM)3.03
OCFY12.31%
SpS8.19
BVpS8.09
TBVpS6.54
PEG (NY)0.3
PEG (5Y)2.86
Graham Number16.74
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 | 0.87 |
F-Score9
WACC8.41%
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 Y52.51%
EPS Next 2Y35.78%
EPS Next 3Y27.69%
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 2Y16.96%
Revenue Next 3Y10.78%
Revenue Next 5Y10.34%
EBIT growth 1Y57.38%
EBIT growth 3Y37.29%
EBIT growth 5Y12.34%
EBIT Next Year122.08%
EBIT Next 3Y36.5%
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 15.96 and the Price/Book (PB) ratio is 3.04.
Can you provide the financial health for AROC stock?
The financial health rating of ARCHROCK INC (AROC) is 2 / 10.