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Archrock Inc (AROC)

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Upturn Advisory Summary
12/10/2025: AROC (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $31.56
1 Year Target Price $31.56
| 4 | Strong Buy |
| 3 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 53.49% | Avg. Invested days 47 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.44B USD | Price to earnings Ratio 16.76 | 1Y Target Price 31.56 |
Price to earnings Ratio 16.76 | 1Y Target Price 31.56 | ||
Volume (30-day avg) 7 | Beta 0.94 | 52 Weeks Range 19.61 - 29.47 | Updated Date 12/10/2025 |
52 Weeks Range 19.61 - 29.47 | Updated Date 12/10/2025 | ||
Dividends yield (FY) 3.20% | Basic EPS (TTM) 1.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 18.43% | Operating Margin (TTM) 38.65% |
Management Effectiveness
Return on Assets (TTM) 7.93% | Return on Equity (TTM) 19.56% |
Valuation
Trailing PE 16.76 | Forward PE 13.53 | Enterprise Value 7006238639 | Price to Sales(TTM) 3.08 |
Enterprise Value 7006238639 | Price to Sales(TTM) 3.08 | ||
Enterprise Value to Revenue 4.87 | Enterprise Value to EBITDA 9.16 | Shares Outstanding 175369642 | Shares Floating 170364592 |
Shares Outstanding 175369642 | Shares Floating 170364592 | ||
Percent Insiders 2.71 | Percent Institutions 99.18 |
Upturn AI SWOT
Archrock Inc

Company Overview
History and Background
Archrock Inc. (formerly Exterran Holdings, Inc.) was established in 2006. It was created as a spin-off of Exterran Corporation's contract compression and aftermarket services businesses. The company rebranded to Archrock in 2019 to better reflect its focus on the natural gas compression services sector. Its evolution has been centered on consolidating and growing its contract compression fleet and expanding its service offerings in the midstream and upstream oil and gas sectors.
Core Business Areas
- Contract Compression: Archrock provides natural gas compression services primarily through its extensive fleet of contract compression assets. These services are essential for moving natural gas through pipelines and processing facilities. Clients lease these compression units on a fee-per-horsepower basis, making this Archrock's primary revenue driver.
- Aftermarket Services: This segment offers maintenance, repair, and operational support for its own fleet as well as for third-party compression equipment. This includes parts sales, field services, and custom fabrication. This segment complements the contract compression business by ensuring the reliability and efficiency of the installed fleet.
Leadership and Structure
Archrock Inc. is led by a management team with extensive experience in the energy infrastructure sector. Key leadership roles include the CEO, CFO, COO, and heads of various operational and commercial divisions. The company operates as a single reporting segment for financial purposes, with its operations organized geographically and by service type.
Top Products and Market Share
Key Offerings
- Contract Compression Services: [object Object]
- Aftermarket Compression Services: [object Object]
Market Dynamics
Industry Overview
Archrock operates in the oil and gas midstream and upstream sectors, specifically within natural gas compression services. The industry is influenced by natural gas prices, production levels, regulatory environments, and demand for energy. The ongoing demand for natural gas as a cleaner-burning fuel and its role in the energy transition continues to support the need for compression services.
Positioning
Archrock is a dominant player in the U.S. contract compression market, known for its large and technologically advanced fleet. Its extensive service network and operational expertise provide a competitive advantage. The company's focus on the U.S. market allows for specialization and efficiency in meeting regional demands.
Total Addressable Market (TAM)
The TAM for natural gas compression services is substantial, driven by global and domestic natural gas production and consumption. While precise figures for Archrock's specific TAM are not publicly detailed, it is directly tied to the volume of natural gas that requires compression. Archrock is well-positioned within the U.S. market, which represents a significant portion of the global TAM, by offering both contract compression and aftermarket services.
Upturn SWOT Analysis
Strengths
- Extensive and modern contract compression fleet
- Strong customer relationships and long-term contracts
- Leading market position in the U.S.
- Diversified revenue streams through aftermarket services
- Experienced management team
Weaknesses
- Sensitivity to commodity price fluctuations (indirectly, through customer activity)
- High capital expenditure requirements for fleet expansion
- Dependence on the U.S. oil and gas market
- Potential for equipment obsolescence
Opportunities
- Growing demand for natural gas in power generation and industrial uses
- Expansion into new geographic regions or service offerings
- Technological advancements in compression efficiency and emissions reduction
- Acquisition opportunities to consolidate market share
Threats
- Increased regulation on natural gas production and transportation
- Volatile commodity prices impacting customer capex
- Competition from other compression service providers
- Transition to renewable energy sources impacting long-term natural gas demand
- Cybersecurity risks to operational technology
Competitors and Market Share
Key Competitors
- Exterran Corporation (NYSE: EX)
- USA Compression Partners, LP (NYSE: USAC)
Competitive Landscape
Archrock benefits from its scale and established infrastructure in the U.S. market. Its competitive advantages lie in its extensive fleet, long-term customer contracts, and comprehensive aftermarket support. However, it faces intense competition, and its performance is tied to the cyclical nature of the oil and gas industry and commodity prices.
Growth Trajectory and Initiatives
Historical Growth: Archrock's historical growth has been driven by the expansion of its contract compression fleet, strategic acquisitions, and the increasing demand for natural gas infrastructure services.
Future Projections: Future growth is projected to be supported by continued demand for natural gas, potential fleet expansion to meet new production needs, and opportunities in aftermarket services. Analyst estimates often focus on projected EBITDA growth and fleet utilization.
Recent Initiatives: Recent initiatives may include fleet optimization, investments in new compression technologies, and efforts to enhance operational efficiency and customer service. The company might also be exploring opportunities related to carbon capture and sequestration or other energy transition services where compression plays a role.
Summary
Archrock Inc. is a strong player in the U.S. contract natural gas compression market, leveraging its large fleet and extensive service network. Its core business is robust, supported by consistent demand for natural gas. However, the company must navigate the inherent volatility of commodity prices and the broader energy transition. Continued investment in fleet modernization and efficient operations will be crucial for sustained success and shareholder returns.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Archrock Inc. Investor Relations
- Company SEC Filings (10-K, 10-Q)
- Financial data aggregators (e.g., Yahoo Finance, Bloomberg)
- Industry analysis reports
Disclaimers:
This analysis is based on publicly available information as of the latest available data. Financial data and market share estimates are subject to change and may not be exhaustive. This information is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Archrock Inc
Exchange NYSE | Headquaters Houston, TX, United States | ||
IPO Launch date 1997-07-01 | President, CEO & Director Mr. D. Bradley Childers J.D. | ||
Sector Energy | Industry Oil & Gas Equipment & Services | Full time employees 1300 | Website https://www.archrock.com |
Full time employees 1300 | Website https://www.archrock.com | ||
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; and operates as a packager of reciprocal and rotary screw natural gas compressors for sale or on a contract compression basis. It serves integrated and independent oil and natural gas processors, gatherers, and transporters. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.

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