Archrock Inc logo

Archrock Inc(AROC)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$30.43
09/25/2026
(24-hour delay)

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*as per simulation (see disclosures)
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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 styleFitWhy
Growth investorMixed fitWhile the company has growth potential, its mature business model and dividend focus often appeal more to income-oriented investors.
Momentum investorStrong fit while signal remains positiveMomentum investors may find interest during periods of rising natural gas production and increased infrastructure spending.
Value investorStrong fitThe company’s focus on long-term fixed-fee contracts and consistent cash generation can provide a value-oriented investment case.
Dividend investorStrong fitArchrock is a suitable candidate for dividend investors due to its commitment to recurring, stable cash flow distribution.
Low-risk investorMixed fitExposure to energy industry cycles and capital-intensive operations introduces volatility that may not suit the most conservative investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock price is sensitive to broader energy sector cycles and commodity price fluctuations.
Valuation riskMediumMarket valuations for midstream service providers fluctuate based on prevailing interest rates and growth expectations.
Competition risk (Compression services)MediumIntense competition for long-term contracts with E&P operators can impact pricing power.
Business qualityMedium / highThe business benefits from strong contract structures, though it remains tethered to the capital-intensive nature of energy equipment.
Dividend incomeMediumDividend sustainability is tied to ongoing demand for compression services and free cash flow generation.
Execution riskMediumOperational efficiency in managing a massive, geographically dispersed fleet is critical to profitability.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

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

Moderately Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
AROC receives a 4-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
AROC has solid overall fundamentals (4 stars), with solid financial health, strong growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+87.1%) and solid cash generation (FCF margin 8.0%) are partially offset by modest insider ownership of 2.70%.

Financial Health Rating

★★★★★
AROC's financial health is supported by solid profitability, including gross margin of 48.6% and operating margin of 38.7%. Liquidity is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is AROC's strongest growth driver at +87.1% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+28.7%, solid) and free-cash-flow growth (+69.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 102.3% and approximately 97.2% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 2.70% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 16.03%
Vanguard Portfolio Management, LLC 6.24%
Earnest Partners LLC 5.57%
Amvescap Plc. 4.57%
Vanguard Capital Management, LLC 4.28%

Unit Economics (Per $1K Revenue)

★★★★★
AROC generates approximately $486 of gross profit, $387 of operating income, and $80 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 23.80%

Quantitative Style Profile

★★★★★
AROC has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

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 areaWhat it includesRetail investor read
Contract CompressionLeasing compression equipment to natural gas producers on a long-term, fixed-fee basis.This is the core, stable revenue engine for the company.
Aftermarket ServicesSelling 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

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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

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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
Full time employees 1350

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.