Archrock, Inc.

Valuation Analysis

About the Company

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services. The company also sells over-the-counter parts and components, as well as provides operations, major and routine maintenance, overhaul, and reconfiguration services to customers who own compression equipment. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. Archrock, Inc. was formerly known as Exterran Holdings, Inc. and changed its name to A

Archrock, Inc. Stock at a Glance

Archrock, Inc. (AROC) is currently trading at $36.61 with a market capitalization of $6.4B. The trailing P/E ratio stands at 19.9x, with a forward P/E of 15.64x. The 52-week range spans from $21.17 to $40.12; the current price is 8.7% below the yearly high. Year-over-year revenue growth stands at +7.7%. The net profit margin stands at 21.45%.

💰 Dividend

Archrock, Inc. pays an annual dividend of $0.88 per share, representing a yield of 2.4%. The payout ratio stands at 45.08%.

📊 Analyst Rating

9 analysts rate Archrock, Inc. (AROC) on consensus: Strong Buy. The average price target is $41.89, implying +14.42% from the current price. Analyst price targets range from $39.00 to $46.00.

Archrock, Inc.: The Investment Case in Detail

Archrock, Inc. (AROC) operates in the Energy — specifically Oil & Gas Equipment & Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 66.32%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Free cash flow is positive and net margins stand at 21.45%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

What to Watch Next

• The forward P/E of 15.64x is meaningfully below the trailing 19.9x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (5.48%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

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