AXIAPC

Axia Energia

Fundamental data last updated:April 13, 2026

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company profile

SECTOR

Utilities

industry

Utilities - Renewable

Exchange

NYSE

County of HQ

United States

Next Earnings Date

Business Summary

Archrock operates in the Oil & Gas Equipment & Services space, providing essential compression and related services that are critical to hydrocarbon production and transportation. Its business model revolves around deploying and maintaining specialized equipment that customers rely on for continuous operations, generating recurring revenue streams rather than one-off sales. The moat comes from asset scale, long-term customer relationships, and the operational expertise required to maintain high uptime in demanding field conditions. Cash flow is driven by high-margin service contracts layered on top of a large installed equipment base, creating operating leverage when utilization rates are strong.

 


VALUATION

P/E

28.1

Market Cap ($M USD)

$29,333

Forward P/E

-

PEG

-

PRICE TO SALES

4.5

PRICE TO BOOK

1.2

EV / EBITDA

55.9

5-Year Average P/E

Free Cash Flow Yield

DCF Value

Graham Number

Price to FCF

EV to FCF

Earnings Yield

FCF Yield

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.44

Next Year EPS Growth Estimate

-

Next Year Revenue Growth Estimate

-

Return on Equity (ROE)

5.50%

FREE CASH FLOW

Operating Margin

23.40%

Debt-to-Equity

0.7

Piotroski F-Score

-

Altman Z-Score

0.9

Return on Invested Capital (ROIC)

5.30%

Current Ratio

1.7

Quick Ratio

Net Debt to EBITDA

Interest Coverage

Gross Profit margin

FCF PER SHARE

REVENUE PER SHARE

Gainseekers Quantitative Analysis

Summary

Archrock trades at a Forward P/E of 15.3 with a PEG of 0.6, which on the surface screams GARP-level undervaluation relative to expected growth, particularly in a capital-intensive Energy services name. The 19.7 trailing P/E is not demanding, and the market cap of $6,300M suggests this is not a speculative micro-cap but a scaled operator. However, the Altman Z-Score of 1.4 is firmly in the distress zone, which materially tempers any valuation optimism and signals balance sheet fragility beneath the surface. This is a stock priced for moderate growth and operational competence, but the low Z-score implies the market is still embedding real credit and cyclicality risk into the multiple. The setup looks like a conditional mispricing: attractive on growth-adjusted earnings, but only for investors comfortable underwriting balance sheet stress risk.

AI Exposure / Tech Reliance

As an Oil & Gas Equipment & Services company, Archrock operates in a capital-intensive, asset-heavy segment where AI adoption is more about operational optimization than product disruption. The industry is increasingly leveraging predictive maintenance, automation, and efficiency analytics, which can support margin expansion given its 21.40% operating margin baseline. While not a direct AI beneficiary, disciplined tech integration could enhance fleet utilization and protect returns in a volatile commodity cycle.

The Bull Case

This is where the numbers get interesting for a GARP or deep value investor. A ROIC of 12.00% against a 5.00% Return on Equity suggests capital is being deployed productively at the operating level, and the 21.40% operating margin is robust for Energy services, indicating real pricing power or cost discipline. The Piotroski F-Score of 8 is a major green flag—this signals strong fundamental momentum, improving financial quality, and limited earnings manipulation risk. Add a PEG Forward of 0.6 and a Forward P/E of 15.3, and you have growth that appears underappreciated by the market. With a Current Ratio of 1.5 and Debt/Equity at 38.70%, leverage is not excessive for the sector, and the 1.6% yield plus a 3% five-year average dividend profile adds a modest income cushion while you wait for multiple expansion.

The Bear Case

The bear case hinges on balance sheet fragility and market skepticism. An Altman Z-Score of 1.4 is a flashing yellow-to-red light, implying elevated financial stress risk despite the seemingly manageable 38.70% Debt/Equity ratio. Short interest at 8.70% of float is not trivial and suggests a meaningful cohort is betting against the sustainability of earnings or the cycle. Return on Equity at just 5.00% is underwhelming relative to the 4.2 Price/Book multiple, raising the question of whether shareholders are being adequately compensated for capital at risk. If growth expectations embedded in the 0.6 PEG fail to materialize, this multiple can compress quickly in a cyclical downturn.

Market Sentiment & Smart Money

Short Interest %

-

Analyst Consensus

-

Average Analyst Price Target

-

Institutional Ownership %

-

1-Year Beta

1.88

Insider Buying % (6 Mo)

-%

Distance to 52-Week High

99.40%

Distance to 52-Week Low

166.40%

EARNINGS SURPRISE %

50-DAY SMA

200-DAY SMA

⚠️ 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.