Archrock, Inc.

Utilities
Natural Gas Distribution
www.archrock.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.86B
PE 23
Debt $2.20B
Cash $4.42M
EV $6.05B
FCF $70.56M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$169.95M
EBIT	$232.38M
ROE	13%
ROA	6%
FCF	$70.56M
Equity	$1.32B
Growth Stability	-120%
PE	22.69
PEG	0.33
PB	2.91
P/FCF	54.64
P/S	3.33
Price/Cash	0
Debt/Equity	1.66
Debt/FCF	31.16
Net Margins	15%
Gross Margins	44%
Op. Margins	20%
Earnings CAGR	10%
Sales Growth YoY	26%
Sales Growth QoQ	12%
Sales CAGR	4%
FCF CAGR	-3%
Equity CAGR	0%
Earnings Stability	0.08
Earnings Growth YoY	82%
Earnings Growth QoQ	59%
Earnings CAGR 5Y	70%

Sales CAGR 5Y	5%
FCF CAGR 5Y	-12%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
FCF CAGR 3Y	3%
Equity CAGR 3Y	13%
Market Cap	$3.86B
Revenue	$1.16B
Dividend Yield	3%
Payout Ratio	65%
Assets	$3.82B
Total Debt	$2.20B
Cash	$4.42M
Shares Outstanding	161.86M
EV	6.05B
Earnings Score	7%
Moat Score	87%
Safety Score	37%
Final Score	44%
Working Capital	44.52M
Current Ratio	1.24
Gross Profit	$505.90M
Shares Growth 3y	1%
Equity Growth QoQ	3%
Equity Growth YoY	52%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

Archrock Inc is a U.S. based natural gas contract operations services company and provider of natural gas compression services. It has two business segments, Contract Operations, and Aftermarket Services. Under the umbrella of contract operations services, the company provides operations to meet customers' natural gas compression needs. Services include designing, owning, installing, operating, and maintaining equipment. Archrock works closely with its customers' personnel to ensure its compression service matches any changing characteristics of the natural gas reservoir. It generates maximum revenue from the Contract Operations segment.

SEC Filings

Direct access to Archrock, Inc. (AROC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Archrock, Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Archrock, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 8%

loading chart...

Archrock, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Archrock, Inc..

Years

Calculation mode

= $596M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$71M	$69M	$67M	$65M	$64M	$62M	$61M	$59M	$58M	$56M	$55M	$546M
DCF		$63M	$55M	$49M	$44M	$39M	$34M	$30M	$27M	$24M	$21M	$211M
Value	$596M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	08/2015	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-	2%	10%	-8%	3%	5%	10%	15%	15%
ROA	-	1%	2%	-3%	2%	2%	5%	6%	6%
ROE	-	2%	9%	-7%	3%	5%	12%	13%	13%

Good Net Margins (14.68%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	08/2015	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-16.53	-19.44	8.66	10.97	-42.52	137.16	31.16	31.16
Debt over Equity	-	1.83	1.7	1.81	1.72	1.8	1.82	1.66	1.66
Growth Stability	-	-	-	-120%	100%	100%	100%	100%	-120%

Bad Debt/FCF ratio (31.16)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.66)

The company is overleveraged and has a bad balance between equity and debt.

Bad Graham’s Stability (-120%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	08/2015	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-	7%	-9%	-11%	8%	17%	17%	5%
Earnings YoY growth	-	-	374%	-173%	-139%	59%	141%	65%	70%
Equity YoY growth	-	-	29%	-14%	-5%	-3%	1%	52%	2%
FCF YoY growth	-	-	2%	-306%	-28%	-126%	-132%	511%	-12%