AROC$26.23
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Powered by LiveAIOverall Analysis
BuyArchrock Inc. demonstrates strong fundamentals with solid revenue and earnings growth, supported by increasing demand in the natural gas sector. While valuation metrics are slightly elevated compared to industry averages, robust analyst sentiment and a growing dividend suggest a positive outlook. Technical indicators are mixed, indicating potential short-term choppiness.
Thematic
Archrock is well-positioned to benefit from long-term trends in natural gas demand, including LNG exports, exports to Mexico, and the increasing energy needs of AI data centers. Its strategic acquisitions and focus on fleet modernization enhance its competitive advantage.
Fundamental
Archrock shows strong financial performance with significant revenue and net income growth. Profitability margins are healthy, and the balance sheet, while carrying debt, is being managed prudently with a decreasing leverage ratio. Consistent dividend increases reflect confidence in sustained cash flow.
Technical
Archrock's technicals present a mixed picture. While the stock has shown positive momentum over the past year, recent moving averages suggest a bearish short-term trend. Oscillators are also mixed, indicating potential for price consolidation.
| Factor | Score |
|---|---|
| Natural Gas Demand Growth | 92 |
| Acquisition Strategy | 88 |
| Energy Transition | 75 |
| Operational Efficiency & Technology | 80 |
| Regulatory Environment | 70 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 85 |
| Growth | 90 |
| Balance Sheet Health | 70 |
| Cash Flow & Dividends | 88 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 55 |
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Powered by LiveAIBullish Points (7)
Positive EPS Surprises
The company has consistently beaten earnings per share (EPS) estimates in recent quarters. For example, Q2 2025 reported EPS of $0.41 versus an estimate of $0.38, a positive surprise of 7.1%.
Reasonable P/E Ratio
The trailing P/E ratio (TTM) is 19.64, which may be considered attractive relative to the company's historical performance and industry peers, suggesting potential for valuation expansion.
Bearish Points (7)
High Quarterly P/S Ratio
The Q1 2025 Price-to-Sales (P/S) ratio is 13.3, which is significantly higher than the annual P/S ratio of 3.7 for 2024, potentially indicating overvaluation on a quarterly basis or anticipation of strong near-term sales.
Slowing Revenue Growth
While 2024 revenue was $1.16 billion, the quarterly revenue growth has shown variability and potential deceleration in recent periods, with Q4 2024 at $326.4 million compared to $347.1 million in Q1 2025.
Calendar
May 2025
6
Ex-Dividend Date
May 2025
13
Next Dividend Date
July 2025
30
Next Earnings Date
H: $0.41
A: $0.39
L: $0.34
H: 373.00M
A: 365.84M
L: 358.50M
Profile
Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services. The company also sells over-the-counter parts and components, as well as provides operations, major and routine maintenance, overhaul, and reconfiguration services to customers who own compression equipment; and operates as a packager of reciprocal and rotary screw natural gas compressors for sale or on a contract compression basis. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. 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.
Seasonals
Price Target
30.88 USD
The 39 analysts offering 1 year price forecasts for AROC have a max estimate of 32.00 and a min estimate of 29.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
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Direct competitor in natural gas compression services, a core business for Archrock. [17, 32, 39, 50]
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Direct competitor in natural gas compression services, highly comparable to Archrock's operations. [32]
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Direct competitor in natural gas compression services and equipment. [17, 50]
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Major energy infrastructure company with extensive natural gas pipelines and storage, directly utilizing and providing compression services within their integrated systems. [3, 5, 10, 15, 20, 21, 22, 25, 26, 31, 33, 34, 40, 45, 46]