AROC

Archrock, Inc.

Fundamental data last updated:June 12, 2026

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company profile

SECTOR

Energy

industry

Oil & Gas Equipment & Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/03/2026

Business Summary

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.

 


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VALUATION

P/E

17.93

Market Cap ($M USD)

$5.87B

Forward P/E

10.40

PEG

0.14

PRICE TO SALES

3.87

PRICE TO BOOK

3.84

EV / EBITDA

9.46

5-Year Average P/E

Free Cash Flow Yield

4.17%

DCF Value

$25.40

Graham Number

$19.15

Price to FCF

24.00

EV to FCF

33.76

Earnings Yield

5.58%

FCF Yield

4.17%

DIVIDEND

Yield

2.57%

Annual Payout

$0.86

Payout Ratio

45.30%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.87

Next Year EPS Growth Estimate

$3.22

Next Year Revenue Growth Estimate

$188.60B

Return on Equity (ROE)

22.28%

FREE CASH FLOW

Operating Margin

33.92%

Debt-to-Equity

1.62

Piotroski F-Score

4

Altman Z-Score

1.46

Return on Invested Capital (ROIC)

12.34%

Current Ratio

1.41

Quick Ratio

1.41

Net Debt to EBITDA

2.73

Interest Coverage

3.08

Gross Profit margin

57.18%

FCF PER SHARE

$1.40

REVENUE PER SHARE

$8.71

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Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Archrock, Inc. relative to its DCF Value and Graham Number, suggesting a potential overvaluation. Despite a robust Forward P/E of 11.48 indicating growth expectations, the Earnings Yield of 5.05% and a concerning Altman Z-score of 1.47 highlight financial vulnerability. The stock’s valuation metrics, such as Price/Book and Price/Sales, suggest a premium that may not be justified by its fundamentals. With a snapshot price extended above its DCF, caution is warranted for value investors seeking a margin of safety.

AI Exposure / Tech Reliance

Operating in the Oil & Gas Equipment & Services industry, Archrock is positioned to leverage AI for operational efficiencies and predictive maintenance. However, the sector's traditional nature may slow tech adoption compared to more agile industries. The company's resilience will depend on its ability to integrate AI into existing processes without disrupting core operations.

The Bull Case

For the value-oriented investor, Archrock presents a compelling case with its strong ROIC of 12.34% and a solid operating margin of 33.92%, indicating efficient capital use and pricing power. The company's Piotroski F-Score of 4 suggests moderate financial health, while its FCF Yield, though modest, points to potential for cash generation. These factors, combined with a reasonable payout ratio, make it an attractive candidate for those seeking growth at a reasonable price.

The Bear Case

Despite some strengths, Archrock faces significant structural risks. Its high Price/Book and Price/Sales ratios signal potential overvaluation, while a low Piotroski F-Score raises red flags about financial stability. The stock's proximity to its 52-week high suggests technical overextension, and a weak Altman Z-score underscores financial distress. Investors should be wary of these vulnerabilities, especially given the modest FCF Yield and high EV to FCF ratio.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$43.50

Institutional Ownership %

1-Year Beta

0.93

Insider Buying % (6 Mo)

Distance to 52-Week High

19.80%

Distance to 52-Week Low

36.79%

EARNINGS SURPRISE %

-10.64%

50-DAY SMA

$36.62

200-DAY SMA

$29.44

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.