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Archrock Inc (AROC)



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Upturn Advisory Summary
08/14/2025: AROC (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $30.88
1 Year Target Price $30.88
4 | Strong Buy |
3 | Buy |
0 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 58.61% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.21B USD | Price to earnings Ratio 17.99 | 1Y Target Price 30.88 |
Price to earnings Ratio 17.99 | 1Y Target Price 30.88 | ||
Volume (30-day avg) 7 | Beta 1.07 | 52 Weeks Range 17.79 - 29.72 | Updated Date 08/15/2025 |
52 Weeks Range 17.79 - 29.72 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 3.19% | Basic EPS (TTM) 1.33 |
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 2025-08-04 | When - | Estimate 0.38 | Actual 0.39 |
Profitability
Profit Margin 17.17% | Operating Margin (TTM) 35.95% |
Management Effectiveness
Return on Assets (TTM) 8.22% | Return on Equity (TTM) 20.11% |
Valuation
Trailing PE 17.99 | Forward PE 15.48 | Enterprise Value 6827387939 | Price to Sales(TTM) 3.12 |
Enterprise Value 6827387939 | Price to Sales(TTM) 3.12 | ||
Enterprise Value to Revenue 5.06 | Enterprise Value to EBITDA 9.91 | Shares Outstanding 175820992 | Shares Floating 163719646 |
Shares Outstanding 175820992 | Shares Floating 163719646 | ||
Percent Insiders 6.91 | Percent Institutions 93.62 |
Upturn AI SWOT
Archrock Inc

Company Overview
History and Background
Archrock Inc. was formed in 2015 as a spin-off from Exterran Holdings. It became a standalone, publicly traded company focusing on natural gas compression services. Exterran started in 1954, as part of a larger industrial conglomerate. Over time it evolved into specialized energy services, with the compression services business being spun out to form Archrock.
Core Business Areas
- Contract Operations: Involves providing natural gas compression services under long-term, fixed-revenue contracts. This is Archrock's primary revenue driver.
- Sales and Services: Encompasses the sale of compression equipment and provision of aftermarket services, including maintenance and repair.
Leadership and Structure
Archrock Inc. has a board of directors and an executive management team. The CEO leads the company's strategic direction and operational execution. The organizational structure is designed to support the company's two main business segments.
Top Products and Market Share
Key Offerings
- Natural Gas Compression Services: Archrock provides compression services to help move natural gas through pipelines. The number of active horsepower is a key metric, with competitors including USA Compression Partners, CSI Compressco and DCP Midstream. The market share is estimated to be approximately 25%.
- Compression Equipment Sales: Archrock sells compression equipment to companies needing compression solutions. There is no specific market share information for this. Competitors include Ariel Corporation and Enerflex.
Market Dynamics
Industry Overview
The natural gas compression industry is driven by the demand for natural gas and the need to transport it efficiently through pipelines. The industry is cyclical, influenced by natural gas prices and production levels.
Positioning
Archrock is one of the largest natural gas compression services providers in the U.S. The Company's strengths lies in its large fleet and established customer relationships.
Total Addressable Market (TAM)
The total addressable market for natural gas compression services is estimated to be $10 billion USD per year. Archrock captures approximately 25% of this TAM. The TAM is primarily affected by natural gas production volumes, pipeline expansion, and equipment replacement cycles.
Upturn SWOT Analysis
Strengths
- Large compression fleet
- Established customer relationships
- Stable revenue stream from contract operations
- Experienced management team
- High utilization rates
Weaknesses
- Dependence on the natural gas industry
- Exposure to commodity price fluctuations
- High capital expenditures
- Significant debt burden
- Reliance on long-term contracts with potential termination risk
Opportunities
- Increased natural gas production in shale plays
- Expansion of pipeline infrastructure
- Acquisition opportunities in a fragmented market
- Growing demand for compression services in the renewable energy sector
- Technology advances in compression efficiency
Threats
- Decline in natural gas prices and production
- Increased competition
- Regulatory changes affecting natural gas production and transportation
- Environmental concerns regarding natural gas production
- Economic downturn affecting energy demand
Competitors and Market Share
Key Competitors
- USAC
- CCLP
- DCP
Competitive Landscape
Archrock benefits from scale, offering a wide range of services. Smaller companies have more specialized regional operations.
Major Acquisitions
Elite Compression Services, LLC
- Year: 2017
- Acquisition Price (USD millions): 410
- Strategic Rationale: Expanding Archrock's compression fleet and geographic presence in key shale plays.
Growth Trajectory and Initiatives
Historical Growth: Historical growth depends on factors like natural gas production, infrastructure development, and acquisitions, and is based on analysis of financial statements. (This is a prompt response).
Future Projections: Future growth is based on analyst estimates based on natural gas production trends. (This is a prompt response).
Recent Initiatives: Recent initiatives include strategic acquisitions to expand the company's footprint and investments in new compression technologies.
Summary
Archrock is a major player in the natural gas compression services industry with significant market share. Its strengths include a large fleet and established customer base, but weaknesses lie in its reliance on the cyclical natural gas industry. Opportunities exist in expanding infrastructure and strategic acquisitions, but threats include fluctuating gas prices and increased competition. The company's stability hinges on effective contract management and capital discipline.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Archrock Inc. Investor Relations
- SEC Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.
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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