Archrock (AROC) AI Stock Analysis

• Market Cap: $4.52B
• Dividend Yield: 2.89%
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.25
• Revenue Growth: 28.22%
• EPS Growth: 49.17%
• Country: US
• Employees: 1,300
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.36
• Shares Outstanding: 175,821,440
• 10 Day Avg. Volume: 1,819,121
• 30 Day Avg. Volume: 1,570,595
• PEG Ratio: 0.41
• Price to Book (P/B): 3.05
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 57.16
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 5.17
• Enterprise Value/Gross Profit: 11.26
• Enterprise Value/Ebitda: 10.16
• 1Y Price Target: $30.80
• Price Target Upside: 16.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $28.00 ▲(5.62% Upside)

Archrock's overall stock score is driven by strong earnings call results and solid financial performance, despite some concerns over cash flow management and leverage. The technical analysis and valuation suggest a stable outlook, with the company's strategic initiatives and market confidence supporting future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Archrock's services, supporting long-term business expansion and market presence.

Operational Efficiency

High operational efficiency, as reflected in strong margins, suggests effective cost management and competitive advantage in service delivery.

Market Confidence

Increasing dividends and share buybacks reflect management's confidence in future cash flows and commitment to returning value to shareholders.

Negative Factors

High Leverage

Significant leverage can limit financial flexibility and increase risk, potentially impacting long-term financial stability and growth capacity.

Declining Free Cash Flow

A sharp decline in free cash flow growth suggests potential cash management issues, which could affect future investment and operational capabilities.

Impairment Impact

Impairment charges can signal underlying asset issues, affecting profitability and indicating potential challenges in asset management.

Archrock Business Overview & Revenue Model

Company Description

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. It operates in two segments, Contract Operations and Aftermarket Services. The company engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining its owned fleet of natural gas compression equipment to provide natural gas compression services to customers in the oil and natural gas industry. It also offers various aftermarket services, such as sale of parts and components; and provision of operation, maintenance, overhaul, and reconfiguration services to customers who own compression equipment. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.

How the Company Makes Money

Archrock generates revenue primarily through its Contract Compression Services segment, which accounts for a significant portion of its earnings. This involves leasing its compressors to customers on a long-term basis, often supplemented by maintenance and repair services. Additionally, the Product Sales segment contributes to revenue by selling new and refurbished compression equipment. The company benefits from long-term contracts with major oil and gas operators, ensuring a steady stream of income. Archrock's strategic partnerships with key players in the energy sector enhance its market presence and facilitate access to new opportunities, further bolstering its revenue-generating capabilities.

Archrock Financial Statement Overview

Summary

Archrock demonstrates strong revenue and profit growth, supported by efficient operations and profitability. However, high leverage and declining free cash flow growth pose potential risks. The company shows resilience in generating cash from operations, but needs to address cash flow management to sustain long-term financial health.

Income Statement

Archrock's income statement shows strong revenue growth with a 9.11% increase in TTM, supported by robust gross and net profit margins of 45.91% and 17.17%, respectively. The EBIT and EBITDA margins are also healthy at 33.90% and 50.89%, indicating efficient operational management. The consistent improvement in profitability metrics over the years highlights a positive trajectory.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.86, which suggests significant leverage. However, the return on equity is strong at 17.24%, indicating effective use of equity to generate profits. The equity ratio of 31.77% shows a moderate level of equity financing relative to total assets, suggesting a balanced approach to capital structure.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow growth by -184.07% in TTM, highlighting potential cash management issues. However, the operating cash flow to net income ratio of 2.23 indicates solid cash generation relative to earnings. The free cash flow to net income ratio is low at 3.60%, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.16B	990.34M	845.57M	781.46M	874.97M
Gross Profit	619.21M	505.90M	375.08M	261.82M	243.60M	304.64M
EBITDA	686.45M	549.18M	423.30M	581.33M	506.01M	396.93M
Net Income	231.54M	172.23M	105.00M	44.30M	28.22M	-68.44M
Balance Sheet
Total Assets	4.43B	3.82B	2.66B	2.60B	2.59B	2.78B
Cash, Cash Equivalents and Short-Term Investments	5.86M	4.42M	1.34M	1.57M	1.57M	1.10M
Total Debt	2.63B	2.21B	1.60B	1.56B	1.55B	1.71B
Total Liabilities	3.02B	2.50B	1.78B	1.74B	1.70B	1.84B
Stockholders Equity	1.41B	1.32B	871.02M	860.69M	891.44M	935.56M
Cash Flow
Free Cash Flow	16.73M	70.56M	11.55M	-36.42M	139.51M	194.98M
Operating Cash Flow	464.34M	429.59M	310.19M	203.45M	237.40M	335.28M
Investing Cash Flow	-1.53B	-1.16B	-232.49M	-130.92M	16.11M	-85.03M
Financing Cash Flow	1.07B	733.55M	-77.92M	-72.54M	-253.03M	-252.84M

Archrock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AROC, the sentiment is Positive. The current price of 26.51 is above the 20-day moving average (MA) of 24.74, above the 50-day MA of 23.98, and above the 200-day MA of 24.81, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 88.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AROC.

Archrock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGS	78 Outperform	353.82M	19.81	6.73%	0.35%	14.77%	34.74%
AROC	76 Outperform	$4.52B	19.46	19.85%	2.89%	28.22%	49.17%
VAL	72 Outperform	3.62B	13.14	11.83%	―	18.78%	-72.57%
NOV	70 Outperform	4.89B	10.82	7.18%	3.82%	-1.21%	-54.44%
KGS	67 Neutral	3.08B	39.90	6.24%	4.63%	31.01%	39.51%
USAC	61 Neutral	2.92B	35.82	-195.43%	8.75%	8.22%	28.05%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Archrock Corporate Events

Archrock Announces Dual Listing on NYSE Texas

On August 12, 2025, Archrock, Inc. announced the dual listing of its common stock on NYSE Texas, a new fully electronic equities exchange based in Dallas, Texas. This move supports a pro-business initiative in Texas, where Archrock’s headquarters and a majority of its operations are located. The company will maintain its primary listing on the New York Stock Exchange under the ticker symbol ‘AROC’. This dual listing is expected to enhance Archrock’s market presence and strengthen its ties within the Texas business community.

The most recent analyst rating on (AROC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Archrock stock, see the AROC Stock Forecast page.

Archrock Shifts to Online Investor Updates

On August 12, 2025, Archrock, Inc. released an investor presentation on its website, indicating a shift towards using its online platform for future investor updates without necessarily filing a Current Report on Form 8-K. This move suggests a streamlined approach to investor communications, potentially impacting how stakeholders access and respond to company information.

The most recent analyst rating on (AROC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Archrock stock, see the AROC Stock Forecast page.