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Archrock Inc (AROC)

Upturn stock ratingUpturn stock rating
$23.93
Last Close (24-hour delay)
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

08/14/2025: AROC (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

7 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $30.88

1 Year Target Price $30.88

Analysts Price Target For last 52 week
$30.88 Target price
52w Low $17.79
Current$23.93
52w High $29.72

Analysis of Past Performance

Type Stock
Historic Profit 58.61%
Avg. Invested days 48
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/14/2025

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

ai summary icon Upturn AI SWOT

Archrock Inc

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 1300

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.