Archrock AROC
United StatesEnergy · Oil & Gas Equipment & ServicesUSD
42.50 USD (+41.2%)
8 analysts
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Archrock, Inc. is a U.S. company that provides natural gas compression services and rental of compression equipment to gas producers and transporters, generating recurring revenue from service contracts and leasing.
Key points
from its scores- ✓Attractive dividend7.5
- ✕Weak growth4.4
- !Weak share-price trend5.7
- !Somewhat demanding valuation5.8
AI analysis
bottom line, main risk, context and newsThe combination of a sound balance sheet and quality business offsets weakness in revenue, but without clear growth catalysts, upside will be limited.
Archrock shows solid financial health (net debt/EBITDA of 2.76, operating margin of 35.93%) and strong business quality (ROE of 22.19%), although revenue growth is negative (-3.10%) and valuation is reasonable (EV/EBITDA of 8.94, P/E of 16.18).
The main risk is dependence on capital spending by U.S. natural gas producers, which could contract if gas prices weaken, affecting demand for compression services.
Context and risks
Archrock provides natural gas compression services in the U.S., with revenues tied to gas production and producer activity. The rising rate environment and strong dollar do not materially affect its business, and there is no relevant exposure to shipping routes or direct geopolitical risks. Its net debt/EBITDA of 2.76 is moderate and does not present an imminent refinancing risk.
Is Archrock stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Energy median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 16.2 | 15.7 | +3% |
| EV / EBITDA | 8.9 | 8.0 | +11% |
| Price / book | 3.4 | 2.2 | +52% |
| Price / sales | 3.5 | 1.9 | +83% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.8 out of 10 (median for Energy: 5.9).
Average analyst target: 42.50 USD, +41.2% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 16.2
- Forward P/E
- 13.7
- EV / EBITDA
- 8.9
- Price / book
- 3.4
- Price / sales
- 3.5
- PEG
- 1.21
- Market cap
- 5.3B USD
- Enterprise value
- 7.6B USD
Profitability
- ROE
- 22.2%
- ROA
- 8.1%
- ROIC (approx.)
- 13.8%
- Gross margin
- 67.3%
- Operating margin
- 35.9%
- Net margin
- 21.8%
- Free cash flow
- 241.3M USD
- FCF yield
- 4.6%
- Cash conversion
- 28%
Solvency
- Total debt
- 2.4B USD
- Net debt
- 2.4B USD
- Cash
- 2.0M USD
- EBITDA
- 853.9M USD
- Net debt / EBITDA
- 2.76
- Debt / equity
- 151.87
- Current ratio
- 1.39
- Quick ratio
- 0.88
Growth
- Revenue growth
- −3.1%
- Earnings growth
- +5.9%
- EPS (TTM)
- 1.86 USD
- EPS (forward)
- 2.19 USD
Dividend
- Dividend yield
- 3.1%
- Payout
- 46.2%
Risk and market
- Beta
- 0.91
- Analyst consensus
- Strong buy (8)
- Target price
- 42.50 USD
- 52-week range
- 22.88 – 42.23
Recent news
All AROC news →Compare it with its sector
All 102 in Energy →Frequently asked questions about Archrock
Is Archrock stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Energy median (within 15%). Valuation score: 5.8 out of 10 (median for Energy: 5.9). Average analyst target: 42.50 USD, +41.2% versus the price. This is not investment advice.
What score does Archrock get on MeridIAn Screener?
It scores 6.4 out of 10, rank 602 of 2,130 (better than 68% of the companies analysed). Its strongest category is Dividend (7.5) and its weakest, Growth (4.4). Analysis of 08/10/2026.
What is Archrock's P/E ratio?
Its P/E is 16.2: the share price equals 16.2 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 13.7.
How much is Archrock worth on the stock market?
Its market capitalisation is 5.3B USD and its enterprise value, debt included, is 7.6B USD.
How much debt does Archrock have?
Its net debt (debt minus cash) is 2.4B USD. That is 2.76 times its EBITDA; the Energy median is 1.23.
Does Archrock pay a dividend?
Yes: its dividend yield is 3.06% and it pays out 46% of its earnings.
How has Archrock stock performed over the last year?
It has risen 29.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 22.88 and 42.23 USD. Past performance does not guarantee future results.
What do analysts think of Archrock?
8 analysts cover it; their average recommendation is “Strong buy” and their average target is 42.50 USD (+41.2% versus the price). It is an estimate, not market data.