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Archrock, Inc.

Rank #378Op. LeverageWatchlistCompare with other stocks

AROC · NYSE · Energy

Archrock, Inc. (AROC) — Rank #378 by gross profitability (GP/assets 0.16) · ROE 20.8% · Piotroski F-Score 8 / 9.

As-of 2026-10-30 · CIK 0001389050 · all metrics point-in-time as of the filing date.

About

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States.

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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.

Industry
Oil & Gas Equipment & Services
Sector
Energy
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,350

Industry

Oil & Gas Equipment & Services

Exchange

NYSE

10/11

Flags passed

AROC passes 10/11 quality flags

1 caution to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Deferred revenue growing · Sequential beat (rev + EPS)

No data Operating margin — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.16
Return on equity
20.8%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.86
Current ratio
1.39×
Net cash
-$2.35B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
1.3%

Growth

1/2 pass
Revenue growth
28.7%
Piotroski F-Score
8 / 9
Share dilution
7.6%

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.16

Gross profitability (GP / assets)

0.16

Primary signal (Novy-Marx).

4th of 6 SIC 4922 peers

Return on equity

20.8%

Gross margin

48.6%

1st of 6 SIC 4922 peers

Revenue growth (YoY)

28.7%

RPO growth (YoY)

1.3%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

20.8%

Revenue CAGR (5Y)

11.2%

Earnings CAGR (3Y)

93.8%

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 63% below net income

Free cash flow

$119.64M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

-62.9%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net debt $2.35B, F-Score 8/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.86

Current ratio

1.39×

1st of 6 SIC 4922 peers

Quick ratio

0.88×

Net cash

-$2.35B

Cash & equivalents minus total debt.

Piotroski F-Score

8 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

2.5 / 5

Fair
Payout ratio
43.9%4/5 Strong
FCF coverage
0.84×1/5 Weak
Dividend growth streak
9 yr4/5 Strong
Balance-sheet health
D/E 1.86 · IC N/A1/5 Weak

Capital allocation quality

Composite score

2.0 / 5

Fair
Share count trend
7.6%0/5 Weak
Buyback timing
N/AN/A
Dividend growth consistency
9 yr4/5 Strong
Net debt trajectory
-5.0%2/5 Fair

Lifecycle Phase History

20202025
Decline
Value
Capital Return
Op. Leverage

Price History

AROC+415.3% · +38.7% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports