ARCHROCK INC (AROC) Stock Fundamental Analysis
NYSE:AROC - US03957W1062 - Common Stock
24.76 USD
-0.06 (-0.24%)
24.76 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to AROC. AROC was compared to 61 industry peers in the Energy Equipment & Services industry. AROC has an excellent profitability rating, 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.
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 Return On Assets of 5.16%. This is in the better half of the industry: AROC outperforms 65.57% of its industry peers.
AROC has a Return On Equity of 16.23%. This is amongst the best in the industry. AROC outperforms 80.33% of its industry peers.
With a decent Return On Invested Capital value of 8.26%, AROC is doing good in the industry, outperforming 68.85% 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 in line with the industry average of 8.01%.
The 3 year average ROIC (6.45%) for AROC is below the current ROIC(8.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 16.23% | ||
| ROIC | 8.26% |
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
The Profit Margin of AROC (16.94%) is better than 93.44% of its industry peers.
AROC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 34.97%, AROC belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
AROC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 62.75%, AROC belongs to the best of the industry, outperforming 96.72% of the companies in the same industry.
AROC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.97% | ||
| PM (TTM) | 16.94% | ||
| GM | 62.75% |
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 below the Cost of Capital (WACC), which means it is destroying 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.
AROC has a better debt/assets ratio than last year.
2.2 Solvency
AROC has an Altman-Z score of 0.82. This is a bad value and indicates that AROC is not financially healthy and even has some risk of bankruptcy.
AROC has a worse Altman-Z score (0.82) than 78.69% of its industry peers.
AROC has a debt to FCF ratio of 156.20. This is a negative value and a sign of low solvency as AROC would need 156.20 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 156.20, AROC is doing worse than 67.21% of the companies in the same industry.
AROC has a Debt/Equity ratio of 1.86. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AROC (1.86) is worse than 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 156.2 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.94
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.81 indicates that AROC should not have too much problems paying its short term obligations.
AROC has a Current ratio of 1.81. This is comparable to the rest of the industry: AROC outperforms 44.26% of its industry peers.
AROC has a Quick Ratio of 1.30. 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 (1.30) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.11% 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.
AROC shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.22%.
AROC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
EPS 1Y (TTM)51.11%
EPS 3Y76.8%
EPS 5Y5.59%
EPS Q2Q%69.57%
Revenue 1Y (TTM)28.22%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%41.63%
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 29.53% on average per year.
The Revenue is expected to grow by 13.90% on average over the next years. This is quite good.
EPS Next Y50.89%
EPS Next 2Y33.44%
EPS Next 3Y29.53%
EPS Next 5YN/A
Revenue Next Year28.27%
Revenue Next 2Y17.1%
Revenue Next 3Y13.9%
Revenue Next 5YN/A
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.
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
AROC is valuated rather expensively with a Price/Earnings ratio of 18.21.
AROC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.08. AROC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.24, AROC is valued correctly.
AROC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AROC is cheaper than 63.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AROC to the average of the S&P500 Index (22.72), we can say AROC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AROC indicates a rather expensive valuation: AROC more expensive than 83.61% of the companies listed in the same industry.
67.21% 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 | 260.23 | ||
| EV/EBITDA | 9.89 |
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 29.53% in the coming years.
PEG (NY)0.36
PEG (5Y)3.26
EPS Next 2Y33.44%
EPS Next 3Y29.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, AROC has a reasonable but not impressive dividend return.
AROC's Dividend Yield is rather good when compared to the industry average which is at 3.44. AROC pays more dividend than 83.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AROC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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 55.29% 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.
DP55.29%
EPS Next 2Y33.44%
EPS Next 3Y29.53%
24.76
-0.06 (-0.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.03%
Inst Owner Change-0.57%
Ins Owners2.7%
Ins Owner Change0.34%
Market Cap4.35B
Analysts84.29
Price Target31.49 (27.18%)
Short Float %2.93%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend0.67
Dividend Growth(5Y)3.62%
DP55.29%
Div Incr Years2
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.12%
Min EPS beat(2)3.25%
Max EPS beat(2)5%
EPS beat(4)3
Avg EPS beat(4)-0.16%
Min EPS beat(4)-19.32%
Max EPS beat(4)10.45%
EPS beat(8)5
Avg EPS beat(8)0.58%
EPS beat(12)8
Avg EPS beat(12)13.04%
EPS beat(16)9
Avg EPS beat(16)10.32%
Revenue beat(2)1
Avg Revenue beat(2)0.81%
Min Revenue beat(2)-0.71%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-3.21%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)-0.46%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-1.98%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)7.48%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-3.74%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)6.58%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 13.24 | ||
| P/S | 3.23 | ||
| P/FCF | 260.23 | ||
| P/OCF | 9.38 | ||
| P/B | 3.09 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)1.36
EY5.49%
EPS(NY)1.87
Fwd EY7.55%
FCF(TTM)0.1
FCFY0.38%
OCF(TTM)2.64
OCFY10.67%
SpS7.67
BVpS8.01
TBVpS6.43
PEG (NY)0.36
PEG (5Y)3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 16.23% | ||
| ROCE | 11.17% | ||
| ROIC | 8.26% | ||
| ROICexc | 8.27% | ||
| ROICexgc | 8.85% | ||
| OM | 34.97% | ||
| PM (TTM) | 16.94% | ||
| GM | 62.75% | ||
| FCFM | 1.24% |
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%
ROICexcg growth 3Y21.54%
ROICexcg 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-Score7
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.86 | ||
| Debt/FCF | 156.2 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 191.78% | ||
| Cap/Sales | 33.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.85% | ||
| Profit Quality | 7.32% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 0.82 |
F-Score7
WACC8.77%
ROIC/WACC0.94
Cap/Depr(3y)167.19%
Cap/Depr(5y)125.78%
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)51.11%
EPS 3Y76.8%
EPS 5Y5.59%
EPS Q2Q%69.57%
EPS Next Y50.89%
EPS Next 2Y33.44%
EPS Next 3Y29.53%
EPS Next 5YN/A
Revenue 1Y (TTM)28.22%
Revenue growth 3Y13.99%
Revenue growth 5Y3.7%
Sales Q2Q%41.63%
Revenue Next Year28.27%
Revenue Next 2Y17.1%
Revenue Next 3Y13.9%
Revenue Next 5YN/A
EBIT growth 1Y54.49%
EBIT growth 3Y37.29%
EBIT growth 5Y12.34%
EBIT Next Year116.89%
EBIT Next 3Y36.47%
EBIT Next 5YN/A
FCF growth 1Y118.81%
FCF growth 3Y-20.33%
FCF growth 5YN/A
OCF growth 1Y99.87%
OCF growth 3Y21.86%
OCF growth 5Y8.17%