AROC Stock Analysis: Archrock | NYSE
Oil & Gas Equipment & Services | NYSE, USA | Market Cap: 7.352m USD | 12M Return: 67.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 73.2M
EPS Trend: 98.8%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Archrock, Inc. is a US-based energy infrastructure company that operates in two segments. The Contract Operations segment designs, sources, owns, installs, operates, services, and maintains a fleet of natural gas compression equipment under long-term arrangements. The Aftermarket Services segment sells over-the-counter parts and components and provides operations, major and routine maintenance, overhaul, and reconfiguration services for customer-owned compression equipment.
The company serves integrated and independent oil and natural gas processors, gatherers, and transporters. Archrock was founded in 1990, is headquartered in Houston, Texas, and was formerly known as Exterran Holdings, Inc. before adopting its current name in November 2015. It is classified within the GICS Energy sector under the Oil & Gas Equipment & Services sub-industry.
Natural gas compression is a core piece of midstream infrastructure, used to pressurize gas so it can move efficiently through gathering systems, processing facilities, and long-haul pipelines. As a result, demand for compression services is closely tied to US natural gas production volumes and the build-out of gathering and transport networks.
- Natural gas production growth lifts compression horsepower demand
- Aftermarket services margins expand with larger installed fleet base
- Acquisitions and fleet investment scale contract operations capacity
| Net Income: 325.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 6.07 > 1.0 |
| NWC/Revenue: 5.90% < 20% (prev 7.07%; Δ -1.17% < -1%) |
| CFO/TA 0.16 > 3% & CFO 692.3m > Net Income 325.2m |
| Net Debt (2.39b) to EBITDA (877.0m): 2.73 < 3 |
| Current Ratio: 1.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (174.5m) vs 12m ago 0.07% < -2% |
| Gross Margin: 57.18% > 18% (prev 61.92%; Δ -4.74% > 0.5%) |
| Asset Turnover: 36.31% > 50% (prev 31.18%; Δ 5.13% > 0%) |
| Interest Coverage Ratio: 3.63 > 6 (EBIT TTM 605.8m / Interest Expense TTM 167.1m) |
| A: 0.02 (Total Current Assets 308.6m - Total Current Liabilities 219.2m) / Total Assets 4.39b |
| B: -0.51 (Retained Earnings -2.22b / Total Assets 4.39b) |
| C: 0.15 (EBIT TTM 605.8m / Avg Total Assets 4.18b) |
| D: 0.53 (Book Value of Equity 1.52b / Total Liabilities 2.87b) |
| Altman-Z'' = 0.01 = B |
| DSRI: 0.91 (Receivables 184.6m/164.8m, Revenue 1.52b/1.24b) |
| GMI: 1.08 (GM 61.92% / 57.18%) |
| AQI: 1.34 (AQ_t 0.08 / AQ_t-1 0.06) |
| SGI: 1.23 (Revenue 1.52b / 1.24b) |
| TATA: -0.08 (NI 325.2m - CFO 692.3m) / TA 4.39b) |
| Beneish M = -2.67 (Cap -4..+1) = A |
As of July 01, 2026, the stock is trading at USD 40.45 with a total of 2,682,990 shares traded. Over the past week, the price has changed by +6.22%, over one month by +20.78%, over three months by +17.99% and over the past year by +67.92%.
Current recommended Stop Loss: 38.50 (which is 4.8% or 1.4 ATR below the current price).
Archrock has received a consensus analysts rating of 4.57. Therefore, it is recommended to buy AROC.
- StrongBuy: 4
- Buy: 3
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 42.3 | 4.6% |
P/E Trailing = 22.7989
P/E Forward = 22.3714
P/S = 4.8484
P/B = 4.8434
P/EG = 1.8644
Revenue TTM = 1.52b USD
EBIT TTM = 605.8m USD
EBITDA TTM = 877.0m USD
Long Term Debt = 2.38b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 2.40b USD (from shortLongTermDebtTotal, last quarter) + Leases 9.80m
Net Debt = 2.39b USD (calculated: Debt 2.40b - CCE 4.46m)
Enterprise Value = 9.75b USD (7.35b + Debt 2.40b - CCE 4.46m)
Interest Coverage Ratio = 3.63 (Ebit TTM 605.8m / Interest Expense TTM 167.1m)
EV/FCF = 39.86x (Enterprise Value 9.75b / FCF TTM 244.5m)
FCF Yield = 2.51% (FCF TTM 244.5m / Enterprise Value 9.75b)
FCF Margin = 16.12% (FCF TTM 244.5m / Revenue TTM 1.52b)
Net Margin = 21.45% (Net Income TTM 325.2m / Revenue TTM 1.52b)
Gross Margin = 57.18% ((Revenue TTM 1.52b - Cost of Revenue TTM 649.3m) / Revenue TTM)
Gross Margin QoQ = 47.54% (prev 52.96%)
Tobins Q-Ratio = 2.22 (Enterprise Value 9.75b / Total Assets 4.39b)
Interest Expense / Debt = 6.97% (Interest Expense 167.1m / Debt 2.40b)
Taxrate = 24.06% (103.1m / 428.5m)
NOPAT = 460.0m (EBIT 605.8m * (1 - 24.06%))
Current Ratio = 1.41 (Total Current Assets 308.6m / Total Current Liabilities 219.2m)
Debt / Equity = 1.58 (Debt 2.40b / totalStockholderEquity, last quarter 1.52b)
Debt / EBITDA = 2.73 (Net Debt 2.39b / EBITDA 877.0m)
Debt / FCF = 9.79 (Net Debt 2.39b / FCF TTM 244.5m)
Total Stockholder Equity = 1.46b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.79% (Net Income 325.2m / Total Assets 4.39b)
RoE = 22.28% (Net Income TTM 325.2m / Total Stockholder Equity 1.46b)
RoCE = 15.78% (EBIT 605.8m / Capital Employed (Equity 1.46b + L.T.Debt 2.38b))
RoIC = 11.05% (NOPAT 460.0m / Invested Capital 4.16b)
WACC = 8.13% (E(7.35b)/V(9.75b) * Re(9.06%) + D(2.40b)/V(9.75b) * Rd(6.97%) * (1-Tc(0.24)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 70.71 | Cagr: 5.58%
[DCF] Terminal Value 75.44% ; FCFF base≈244.5m ; Y1≈245.5m ; Y5≈260.1m
[DCF] Fair Price = 9.42 (EV 4.05b - Net Debt 2.39b = Equity 1.65b / Shares 175.3m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: 98.76 | EPS CAGR: 64.71% | SUE: -0.58 | # QB: 0
Revenue Correlation: 98.98 | Revenue CAGR: 21.94% | SUE: -0.76 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.52 | Chg30d=-0.95% | Revisions=+0% | Analysts=4
EPS current Year (2026-12-31): EPS=2.00 | Chg30d=-1.37% | Revisions=-25% | GrowthEPS=+5.5% | GrowthRev=+4.9%
EPS next Year (2027-12-31): EPS=2.40 | Chg30d=+2.51% | Revisions=+25% | GrowthEPS=+19.7% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: -25%