AROC

ArchrockNYSE:AROC Stock Report

Market Cap

US$1.2b

7D

-1.3%

1Y

32.9%

Updated

20 Sep, 2021

Data

Company Financials +
AROC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends2/6

AROC Overview

Archrock, Inc. operates as an energy infrastructure company in the United States.

Share Price & News

How has Archrock's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AROC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AROC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

AROC

-5.0%

US Energy Services

-2.5%

US Market


1 Year Return

32.9%

AROC

56.9%

US Energy Services

33.0%

US Market

Return vs Industry: AROC underperformed the US Energy Services industry which returned 51.6% over the past year.

Return vs Market: AROC matched the US Market which returned 33.8% over the past year.


Shareholder returns

AROCIndustryMarket
7 Day-1.3%-5.0%-2.5%
30 Day4.1%7.0%-0.9%
90 Day-14.3%-16.7%0.8%
1 Year42.3%32.9%61.6%56.9%35.0%33.0%
3 Year-19.7%-34.8%-51.0%-55.2%57.6%47.9%
5 Year-14.1%-35.9%-51.7%-60.1%120.8%96.7%

Long-Term Price Volatility Vs. Market

How volatile is Archrock's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Archrock Fundamentals Summary

How do Archrock's earnings and revenue compare to its market cap?
AROC fundamental statistics
Market CapUS$1.22b
Earnings (TTM)US$34.90m
Revenue (TTM)US$796.00m

33.5x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AROC income statement (TTM)
RevenueUS$796.00m
Cost of RevenueUS$347.50m
Gross ProfitUS$448.50m
ExpensesUS$413.61m
EarningsUS$34.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin56.34%
Net Profit Margin4.38%
Debt/Equity Ratio176.9%

How did AROC perform over the long term?

See historical performance and comparison

Dividends

7.6%

Current Dividend Yield

251%

Payout Ratio

Valuation

Is Archrock undervalued compared to its fair value and its price relative to the market?

33.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AROC ($7.6) is trading above our estimate of fair value ($5.81)

Significantly Below Fair Value: AROC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AROC is poor value based on its PE Ratio (33.5x) compared to the US Energy Services industry average (30.3x).

PE vs Market: AROC is poor value based on its PE Ratio (33.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AROC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AROC is overvalued based on its PB Ratio (1.3x) compared to the US Energy Services industry average (1x).


Future Growth

How is Archrock forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AROC's forecast earnings growth (38.1% per year) is above the savings rate (2%).

Earnings vs Market: AROC's earnings (38.1% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AROC's revenue (6.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: AROC's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AROC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Archrock performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AROC has high quality earnings.

Growing Profit Margin: AROC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AROC has become profitable over the past 5 years, growing earnings by 43% per year.

Accelerating Growth: AROC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AROC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-49.7%).


Return on Equity

High ROE: AROC's Return on Equity (3.9%) is considered low.


Financial Health

How is Archrock's financial position?


Financial Position Analysis

Short Term Liabilities: AROC's short term assets ($187.9M) exceed its short term liabilities ($125.6M).

Long Term Liabilities: AROC's short term assets ($187.9M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: AROC's debt to equity ratio (176.9%) is considered high.

Reducing Debt: AROC's debt to equity ratio has reduced from 208.2% to 176.9% over the past 5 years.

Debt Coverage: AROC's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: AROC's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is Archrock current dividend yield, its reliability and sustainability?

7.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AROC's dividend (7.63%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: AROC's dividend (7.63%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: AROC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AROC has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (251.5%), AROC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Brad Childers (57 yo)

9.83yrs

Tenure

US$6,123,248

Compensation

Mr. D. Bradley Childers, also known as Brad, has been the Chief Executive Officer and President of Archrock, Inc. since December 12, 2011. Mr. Childers was the Chairman, Chief Executive Officer and Preside...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD6.12M) is above average for companies of similar size in the US market ($USD3.69M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AROC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: AROC's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Archrock, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Archrock, Inc.
  • Ticker: AROC
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$1.217b
  • Shares outstanding: 154.04m
  • Website: https://www.archrock.com

Number of Employees


Location

  • Archrock, Inc.
  • 9807 Katy Freeway
  • Suite 100
  • Houston
  • Texas
  • 77024
  • United States

Listings


Biography

Archrock, Inc. 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,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:29
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.