Archrock Inc
NYSE:AROC

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Archrock Inc
NYSE:AROC
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Price: 26.14 USD 1.55% Market Closed
Market Cap: 4.6B USD
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Intrinsic Value

The intrinsic value of one AROC stock under the Base Case scenario is 26.79 USD. Compared to the current market price of 26.14 USD, Archrock Inc is Undervalued by 2%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

AROC Intrinsic Value
26.79 USD
Undervaluation 2%
Intrinsic Value
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Base Case
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Archrock Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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0-3
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0-12
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0-36
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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Archrock Inc

Current Assets 244.7m
Cash & Short-Term Investments 3.7m
Receivables 149m
Other Current Assets 91.9m
Non-Current Assets 3.6B
Long-Term Investments 4.3m
PP&E 3.3B
Intangibles 195.1m
Other Non-Current Assets 95.9m
Current Liabilities 194.7m
Accounts Payable 70.1m
Accrued Liabilities 119.3m
Other Current Liabilities 5.2m
Non-Current Liabilities 2.3B
Long-Term Debt 2.2B
Other Non-Current Liabilities 94.7m
Efficiency

Earnings Waterfall
Archrock Inc

Revenue
1.1B USD
Cost of Revenue
-453.7m USD
Gross Profit
637.1m USD
Operating Expenses
-306.9m USD
Operating Income
330.2m USD
Other Expenses
-186.8m USD
Net Income
143.4m USD

Free Cash Flow Analysis
Archrock Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2024, Archrock reported adjusted net income of $47 million, a 53% year-over-year increase, alongside an adjusted EBITDA of $151 million, up over 25%. This success was bolstered by the recent acquisition of TOPS, which added significant market presence and enhanced margins. The company anticipates a 10% earnings per share increase and at least a 20% rise in cash dividends for 2025. Capital expenditures for 2024 are projected at $260 million, primarily driven by high-return growth opportunities. With a leverage ratio expected to stabilize between 3 to 3.5x by year-end, Archrock remains committed to returning capital to shareholders while investing in strategic growth.

What is Earnings Call?
Fundamental Scores

AROC Profitability Score
Profitability Due Diligence

Archrock Inc's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Operating Income
ROE is Increasing
Positive 3-Years Revenue Growth
57/100
Profitability
Score

Archrock Inc's profitability score is 57/100. The higher the profitability score, the more profitable the company is.

AROC Solvency Score
Solvency Due Diligence

Archrock Inc's solvency score is 36/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Short-Term Solvency
Average D/E
Positive Net Debt
36/100
Solvency
Score

Archrock Inc's solvency score is 36/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

AROC Price Targets Summary
Archrock Inc

Wall Street analysts forecast AROC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for AROC is 26.52 USD with a low forecast of 24.24 USD and a high forecast of 28.35 USD.

Lowest
Price Target
24.24 USD
7% Downside
Average
Price Target
26.52 USD
1% Upside
Highest
Price Target
28.35 USD
8% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
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Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for AROC is .

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Shareholder Yield
Dividend Yield
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Buyback Yield
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Ownership

AROC Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
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12 Months
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Profile

Archrock Inc Logo
Archrock Inc

Country

United States of America

Industry

N/A

Market Cap

4.6B USD

Dividend Yield

2.56%

Description

Archrock, Inc. engages in the provision of operations, maintenance, service and equipment for oil and natural gas production, processing and transportation applications. The company is headquartered in Houston, Texas and currently employs 1,100 full-time employees. The company went IPO on 2000-05-24. The firm is a provider of natural gas compression services to customers in the oil and natural gas industry throughout the United States, in terms of total compression fleet horsepower and a supplier of aftermarket services to customers that own compression equipment in the United States. The natural gas that it helps transport satisfies demand from electricity generation, heating and cooking and the industrial and manufacturing sectors. The company has two segments. Its Contract Operations segment is comprised of its owned fleet of natural gas compression equipment that it uses to provide operations services to its customers. Its Aftermarket Services segment provides a full range of services to support the compression needs of its customers, which owns compression equipment, including operations, maintenance, overhaul and reconfiguration services and sales of parts and components.

Contact

TEXAS
Houston
9807 Katy Fwy Ste 100
+12818368000.0
www.archrock.com

IPO

2000-05-24

Employees

1 100

Officers

President, CEO & Director
Mr. D. Bradley Childers
Senior VP & CFO
Mr. Douglas S. Aron
Senior Vice President of Operations
Mr. Eric W. Thode
Senior VP, General Counsel & Secretary
Ms. Stephanie C. Hildebrandt
Senior Vice President of Sales & Operations Support
Mr. Jason G. Ingersoll
VP & Chief Accounting Officer
Ms. Donna A. Henderson
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Senior VP & Chief Human Resources Officer
Ms. Elspeth A. Inglis
Vice President of Investor Relations
Ms. Megan Elizabeth Repine
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See Also

Discover More
What is the Intrinsic Value of one AROC stock?

The intrinsic value of one AROC stock under the Base Case scenario is 26.79 USD.

Is AROC stock undervalued or overvalued?

Compared to the current market price of 26.14 USD, Archrock Inc is Undervalued by 2%.

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