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Upturn AI Summary - About
Archrock Inc(AROC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for AROC
09/25/2026: AROC (2-star) is currently NOT-A-BUY. Pass it for now.
Archrock Inc is a specialized provider of natural gas compression services, essential for the efficient transport of gas through energy infrastructure. The company distinguishes itself through a large, geographically diverse fleet and a stable, contract-based revenue model that supports consistent dividends. Its growth story is tied to rising US natural gas production and the expansion of midstream infrastructure for LNG exports. However, investors should monitor risks related to the cyclical energy sector, potential methane emission regulations, and the capital-intensive nature of its fleet management. Archrock is well-suited for income-oriented investors seeking exposure to energy infrastructure, provided they accept the inherent sector volatility.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | While the company has growth potential, its mature business model and dividend focus often appeal more to income-oriented investors. |
| Momentum investor | Strong fit while signal remains positive | Momentum investors may find interest during periods of rising natural gas production and increased infrastructure spending. |
| Value investor | Strong fit | The company’s focus on long-term fixed-fee contracts and consistent cash generation can provide a value-oriented investment case. |
| Dividend investor | Strong fit | Archrock is a suitable candidate for dividend investors due to its commitment to recurring, stable cash flow distribution. |
| Low-risk investor | Mixed fit | Exposure to energy industry cycles and capital-intensive operations introduces volatility that may not suit the most conservative investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock price is sensitive to broader energy sector cycles and commodity price fluctuations. |
| Valuation risk | Medium | Market valuations for midstream service providers fluctuate based on prevailing interest rates and growth expectations. |
| Competition risk (Compression services) | Medium | Intense competition for long-term contracts with E&P operators can impact pricing power. |
| Business quality | Medium / high | The business benefits from strong contract structures, though it remains tethered to the capital-intensive nature of energy equipment. |
| Dividend income | Medium | Dividend sustainability is tied to ongoing demand for compression services and free cash flow generation. |
| Execution risk | Medium | Operational efficiency in managing a massive, geographically dispersed fleet is critical to profitability. |
Price Behavior

Rolling Over
The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 35.5% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.38B USD | Price to earnings Ratio 16.49 | 1Y Target Price 42.5 |
Price to earnings Ratio 16.49 | 1Y Target Price 42.5 | ||
Volume (30-day avg) 1.9M shares | Beta 0.86 | 52 Weeks Range 22.44 - 41.95 | Updated Date 09/25/2026 |
52 Weeks Range 22.44 - 41.95 | Updated Date 09/25/2026 | ||
Dividends yield (FY) 2.85% | Basic EPS (TTM) 1.86 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Contract Compression | Leasing compression equipment to natural gas producers on a long-term, fixed-fee basis. | This is the core, stable revenue engine for the company. |
| Aftermarket Services | Selling parts, maintenance, and technical support for customer-owned equipment. | Provides recurring revenue and strengthens relationships with existing clients. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 16.49 | Forward PE 14.29 | Enterprise Value 7.76B | Price to Sales(TTM) 3.58 |
Enterprise Value 7.76B | Price to Sales(TTM) 3.58 | ||
Enterprise Value to Revenue 5.16 | Enterprise Value to EBITDA 8.81 | Shares Outstanding 175.34M | Shares Floating 170.51M |
Shares Outstanding 175.34M | Shares Floating 170.51M | ||
Percent Insiders 2.7 | Percent Institutions 102.28 |
Upturn AI Summary
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.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Archrock Inc
Exchange NYSE | Headquarters 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 1350 | Website https://www.archrock.com |
Full time employees 1350 | 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. 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 Archrock, Inc. in November 2015. The company was founded in 1990 and is headquartered in Houston, Texas.

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