Archrock, Inc.

Utilities
Natural Gas Distribution
www.archrock.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.04B
PE 28
Debt $2.24B
Cash $3.75M
EV $6.27B
FCF $79.27M

Earnings

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Sales & Net Margins

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Earnings	$143.41M
EBIT	$196.73M
ROE	11%
ROA	5%
FCF	$79.27M
Equity	$1.29B
Growth Stability	-98%
PE	28.15
PEG	0.76
PB	3.13
P/FCF	50.93
P/S	3.7
Price/Cash	0
Debt/Equity	1.73
Debt/FCF	28.21
Net Margins	13%
Gross Margins	58%
Op. Margins	18%
Earnings CAGR	7%
Sales Growth YoY	15%
Sales Growth QoQ	8%
Sales CAGR	1%
FCF CAGR	-2%
Equity CAGR	-3%
Earnings Stability	0.07
Earnings Growth YoY	22%
Earnings Growth QoQ	9%
Earnings CAGR 5Y	37%

Sales CAGR 5Y	3%
FCF CAGR 5Y	-11%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	14%
Sales CAGR 3Y	14%
FCF CAGR 3Y	-11%
Equity CAGR 3Y	6%
Market Cap	$4.04B
Revenue	$1.09B
Dividend Yield	3%
Payout Ratio	72%
Assets	$3.82B
Total Debt	$2.24B
Cash	$3.75M
Shares Outstanding	158.21M
EV	6.27B
Earnings Score	7%
Moat Score	82%
Safety Score	37%
Final Score	42%
Working Capital	50.02M
Current Ratio	1.26
Gross Profit	$637.09M
Shares Growth 3y	1%
Equity Growth QoQ	44%
Equity Growth YoY	50%

Assets & ROA

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Stockholders Equity & ROE

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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-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?

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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 7%

Stability 7%

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Archrock, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Archrock, Inc..

Years

Calculation mode

= $690M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$79M	$78M	$76M	$74M	$73M	$71M	$70M	$69M	$67M	$66M	$64M	$644M
DCF		$71M	$63M	$56M	$50M	$44M	$39M	$35M	$31M	$28M	$25M	$248M
Value	$690M

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	12/2014	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	2%	10%	-8%	3%	5%	10%	13%
ROA	-	1%	2%	-3%	2%	2%	5%	5%
ROE	-	2%	9%	-7%	3%	5%	12%	11%

Good Net Margins (13.34%)

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	12/2014	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-16.53	-19.44	8.66	10.97	-42.52	137.16	28.21
Debt over Equity	1.04	1.83	1.7	1.81	1.72	1.8	1.82	1.73
Growth Stability	-	-	-	-98%	100%	100%	100%	-98%

Bad Debt/FCF ratio (28.21)

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 (1.73)

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

Bad Graham’s Stability (-98%)

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	12/2014	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-69%	7%	-9%	-11%	8%	17%	3%
Earnings YoY growth	-	-79%	374%	-173%	-139%	59%	141%	37%
Equity YoY growth	-	-57%	29%	-14%	-5%	-3%	1%	-1%
FCF YoY growth	-	-43%	2%	-306%	-28%	-126%	-132%	-11%