Archrock, Inc. (AROC) 10-Year Financial Performance & Capital Metrics

AROC • • Industrial / General

EnergyOilfield ServicesCompression & Processing EquipmentNatural Gas Compression

AboutArchrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. It operates in two segments, Contract Operations and Aftermarket Services. The company engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining its owned fleet of natural gas compression equipment to provide natural gas compression services to customers in the oil and natural gas industry. It also offers various aftermarket services, such as sale of parts and components; and provision of operation, maintenance, overhaul, and reconfiguration services to customers who own compression equipment. 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.Show more

Revenue $1.16B +16.9%
EBITDA $753M +27.5%
Net Income $172M +64.0%
EPS (Diluted) 1.05 +56.7%
Gross Margin 60.39% +10.5%
EBITDA Margin 65.06% +9.0%
Operating Margin 48.37% +12.8%
Net Margin 14.88% +40.3%
ROE 15.7% +29.4%
ROIC 14.01% +7.5%
Debt/Equity 1.67 -8.9%
Interest Coverage 4.53 +18.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.6%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.9%

5Y3.7%

3Y13.99%

TTM31.94%

Profit (Net Income) CAGR

10Y10.95%

5Y12.09%

3Y82.75%

TTM82.35%

EPS CAGR

10Y-2.84%

5Y8.45%

3Y80.01%

TTM64.84%

ROCE

10Y Avg13.85%

5Y Avg14.83%

3Y Avg15.99%

Latest18.24%

Peer Comparison

Natural Gas Compression

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
KGSKodiak Gas Services, Inc.	3.15B	36.79	65.70	36.33%	5.84%	5.98%		1.93
USACUSA Compression Partners, LP	3.16B	25.73	35.74	12.32%	10.99%	94.47%	4.32%	90.78
NGSNatural Gas Services Group, Inc.	429.86M	34.20	24.96	29.36%	11.2%	6.89%		0.67
AROCArchrock, Inc.	4.59B	26.18	24.93	16.89%	18.43%	18.65%	1.54%	1.67

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	998.11M	807.07M	794.65M	904.44M	965.49M	874.97M	781.46M	845.57M	990.34M	1.16B
Revenue Growth %	0.04%	-0.19%	-0.02%	0.14%	0.07%	-0.09%	-0.11%	0.08%	0.17%	0.17%
Cost of Goods Sold+	495.05M	379.92M	418.92M	464.37M	456.24M	377.19M	358.92M	419.48M	449.02M	458.5M
COGS % of Revenue	0.5%	0.47%	0.53%	0.51%	0.47%	0.43%	0.46%	0.5%	0.45%	0.4%
Gross Profit+	503.06M	427.15M	375.73M	440.07M	509.25M	497.78M	422.54M	426.08M	541.32M	699.09M
Gross Margin %	0.5%	0.53%	0.47%	0.49%	0.53%	0.57%	0.54%	0.5%	0.55%	0.6%
Gross Profit Growth %	0.11%	-0.15%	-0.12%	0.17%	0.16%	-0.02%	-0.15%	0.01%	0.27%	0.29%
Operating Expenses+	131.92M	115.87M	109.37M	101.56M	117.73M	105.1M	107.17M	117.18M	116.64M	139.12M
OpEx % of Revenue	0.13%	0.14%	0.14%	0.11%	0.12%	0.12%	0.14%	0.14%	0.12%	0.12%
Selling, General & Admin	131.92M	115.87M	109.37M	101.56M	117.73M	105.1M	107.17M	117.18M	116.64M	139.12M
SG&A % of Revenue	0.13%	0.14%	0.14%	0.11%	0.12%	0.12%	0.14%	0.14%	0.12%	0.12%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	0	0	0	0	0	0	0	0
Operating Income+	371.14M	311.28M	266.36M	338.51M	391.52M	392.68M	315.38M	308.9M	424.68M	559.97M
Operating Margin %	0.37%	0.39%	0.34%	0.37%	0.41%	0.45%	0.4%	0.37%	0.43%	0.48%
Operating Income Growth %	0.15%	-0.16%	-0.14%	0.27%	0.16%	0%	-0.2%	-0.02%	0.37%	0.32%
EBITDA+	600.27M	520.27M	454.93M	513.46M	579.6M	585.82M	494.32M	473.16M	590.92M	753.16M
EBITDA Margin %	0.6%	0.64%	0.57%	0.57%	0.6%	0.67%	0.63%	0.56%	0.6%	0.65%
EBITDA Growth %	0.12%	-0.13%	-0.13%	0.13%	0.13%	0.01%	-0.16%	-0.04%	0.25%	0.27%
D&A (Non-Cash Add-back)	229.13M	208.99M	188.56M	174.95M	188.08M	193.14M	178.95M	164.26M	166.24M	193.19M
EBIT	142.02M	103.69M	77.8M	163.56M	203.44M	199.54M	136.43M	144.64M	258.44M	366.77M
Net Interest Income+	-107.62M	-83.9M	-88.76M	-93.33M	-104.68M	-105.72M	-108.14M	-101.26M	-111.49M	-123.61M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	107.62M	83.9M	88.76M	93.33M	104.68M	105.72M	108.14M	101.26M	111.49M	123.61M
Other Income/Expense	-477.33M	-400.7M	-308.98M	-303.2M	-333.06M	-478.66M	-276.42M	-248.31M	-282.43M	-327.59M
Pretax Income+	-106.19M	-89.42M	-42.62M	35.31M	58.46M	-85.98M	38.96M	60.59M	142.25M	232.38M
Pretax Margin %	-0.11%	-0.11%	-0.05%	0.04%	0.06%	-0.1%	0.05%	0.07%	0.14%	0.2%
Income Tax+	53.19M	-24.6M	-61.08M	6.15M	-39.15M	-17.54M	10.74M	16.29M	37.25M	60.15M
Effective Tax Rate %	1.25%	0.61%	-0.44%	0.6%	1.66%	0.8%	0.72%	0.73%	0.74%	0.74%
Net Income+	-132.55M	-54.55M	18.95M	21.06M	97.33M	-68.44M	28.22M	44.3M	105M	172.23M
Net Margin %	-0.13%	-0.07%	0.02%	0.02%	0.1%	-0.08%	0.04%	0.05%	0.11%	0.15%
Net Income Growth %	-3.17%	0.59%	1.35%	0.11%	3.62%	-1.7%	1.41%	0.57%	1.37%	0.64%
Net Income (Continuing)	-159.37M	-64.82M	18.46M	29.16M	97.6M	-68.44M	28.22M	44.3M	105M	172.23M
Discontinued Operations	33.68M	-426K	-54K	0	-273K	0	0	0	0	0
Minority Interest	53.35M	-34.04M	-41.43M	0	0	0	0	0	0	0
EPS (Diluted)+	-1.55	-0.79	0.26	0.19	0.70	-0.45	0.18	0.28	0.67	1.05
EPS Growth %	-2.11%	0.49%	1.33%	-0.27%	2.68%	-1.64%	1.4%	0.56%	1.39%	0.57%
EPS (Basic)	-1.55	-0.79	0.26	0.19	0.70	-0.45	0.18	0.28	0.67	1.05
Diluted Shares Outstanding	68.43M	68.99M	69.66M	109.42M	137.53M	150.83M	151.83M	153.41M	154.34M	162.38M
Basic Shares Outstanding	68.34M	68.99M	69.55M	109.31M	137.49M	150.83M	151.68M	153.28M	154.13M	162.04M
Dividend Payout Ratio	-	-	1.8%	2.77%	0.81%	-	3.17%	2.04%	0.91%	0.64%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	285.3M	215.69M	221.16M	256.2M	232.2M	182.01M	186.57M	231.96M	213.16M	233.12M
Cash & Short-Term Investments	1.56M	3.13M	10.54M	5.61M	3.69M	1.1M	1.57M	1.57M	1.34M	4.42M
Cash Only	1.56M	3.13M	10.54M	5.61M	3.69M	1.1M	1.57M	1.57M	1.34M	4.42M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	147.79M	111.75M	113.42M	163.25M	144.87M	104.42M	104.93M	137.54M	124.07M	132.48M
Days Sales Outstanding	54.04	50.54	52.09	65.88	54.77	43.56	49.01	59.37	45.73	41.77
Inventory	129.41M	93.8M	90.69M	76.33M	74.47M	63.67M	72.87M	84.62M	81.76M	89.69M
Days Inventory Outstanding	95.42	90.12	79.02	60	59.58	61.61	74.1	73.63	66.46	71.4
Other Current Assets	6.54M	7M	6.52M	11.01M	9.19M	12.82M	7.2M	8.23M	5.99M	6.54M
Total Non-Current Assets+	2.42B	2.2B	2.19B	2.3B	2.88B	2.6B	2.4B	2.37B	2.44B	3.59B
Property, Plant & Equipment	2.27B	2.08B	2.08B	2.17B	2.58B	2.41B	2.24B	2.22B	2.32B	3.34B
Fixed Asset Turnover	0.44x	0.39x	0.38x	0.42x	0.37x	0.36x	0.35x	0.38x	0.43x	0.35x
Goodwill	0	0	0	0	100.6M	0	0	0	0	52.16M
Intangible Assets	100.82M	86.7M	68.87M	52.37M	77.47M	61.53M	47.89M	37.08M	30.18M	98.27M
Long-Term Investments	-157.95M	-159.86M	-97.94M	36.18M	42.93M	29.22M	25.42M	0	0	5.5M
Other Non-Current Assets	32.24M	26.05M	41.05M	33.89M	42.84M	41.12M	38.2M	80.4M	93.34M	92.99M
Total Assets+	2.71B	2.41B	2.41B	2.55B	3.11B	2.78B	2.59B	2.6B	2.66B	3.82B
Asset Turnover	0.37x	0.33x	0.33x	0.35x	0.31x	0.31x	0.30x	0.33x	0.37x	0.30x
Asset Growth %	-0.44%	-0.11%	-0%	0.06%	0.22%	-0.11%	-0.07%	0%	0.02%	0.44%
Total Current Liabilities+	135.1M	106.53M	130.86M	150.74M	138.74M	111.69M	125.25M	148.57M	152.14M	188.6M
Accounts Payable	52.43M	32.53M	54.59M	54.94M	60.22M	30.82M	38.92M	64.32M	61.03M	57.57M
Days Payables Outstanding	38.66	31.25	47.56	43.18	48.17	29.82	39.58	55.97	49.61	45.83
Short-Term Debt	0	0	0	0	0	0	0	0	0	4.12M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	38.4M	31.38M	12.85M	43.22M	34.49M	45.68M	48.73M	44.52M	0	-4.12M
Current Ratio	2.11x	2.02x	1.69x	1.70x	1.67x	1.63x	1.49x	1.56x	1.40x	1.24x
Quick Ratio	1.15x	1.14x	1.00x	1.19x	1.14x	1.06x	0.91x	0.99x	0.86x	0.76x
Cash Conversion Cycle	110.8	109.4	83.55	82.7	66.17	75.35	83.53	77.03	62.58	67.34
Total Non-Current Liabilities+	1.78B	1.62B	1.54B	1.56B	1.89B	1.73B	1.57B	1.59B	1.63B	2.31B
Long-Term Debt	1.58B	1.44B	1.42B	1.53B	1.84B	1.69B	1.53B	1.55B	1.58B	2.2B
Capital Lease Obligations	0	0	0	0	16.09M	16.93M	15.94M	14.86M	12.27M	12.41M
Deferred Tax Liabilities	178.57M	167.11M	97.94M	2.84M	1.29M	725K	1.14M	854K	4.92M	62.51M
Other Non-Current Liabilities	206.1M	14.48M	26.54M	27.86M	25.34M	25.96M	25.37M	25.44M	30.73M	38.77M
Total Liabilities	1.92B	1.73B	1.67B	1.71B	2.02B	1.84B	1.7B	1.74B	1.78B	2.5B
Total Debt+	1.59B	1.44B	1.42B	1.53B	1.86B	1.71B	1.55B	1.56B	1.6B	2.21B
Net Debt	1.59B	1.44B	1.41B	1.52B	1.85B	1.7B	1.55B	1.56B	1.6B	2.21B
Debt / Equity	2.02x	2.10x	1.93x	1.82x	1.71x	1.82x	1.74x	1.82x	1.83x	1.67x
Debt / EBITDA	2.65x	2.77x	3.11x	2.98x	3.21x	2.91x	3.13x	3.30x	2.70x	2.94x
Net Debt / EBITDA	2.64x	2.77x	3.09x	2.97x	3.20x	2.91x	3.13x	3.30x	2.70x	2.93x
Interest Coverage	3.45x	3.71x	3.00x	3.63x	3.74x	3.71x	2.92x	3.05x	3.81x	4.53x
Total Equity+	787.26M	684.93M	735.62M	841.57M	1.09B	935.56M	891.44M	860.69M	871.02M	1.32B
Equity Growth %	-0.6%	-0.13%	0.07%	0.14%	0.29%	-0.14%	-0.05%	-0.03%	0.01%	0.52%
Book Value per Share	11.50	9.93	10.56	7.69	7.90	6.20	5.87	5.61	5.64	8.15
Total Shareholders' Equity	733.91M	718.97M	777.05M	841.57M	1.09B	935.56M	891.44M	860.69M	871.02M	1.32B
Common Stock	750K	762K	769K	1.36M	1.59M	1.6M	1.61M	1.63M	1.65M	1.85M
Retained Earnings	-2.01B	-2.23B	-2.24B	-2.26B	-2.24B	-2.4B	-2.46B	-2.51B	-2.5B	-2.44B
Treasury Stock	-72.43M	-73.94M	-76.73M	-79.86M	-81.87M	-83.67M	-86.14M	-88.58M	-101.27M	-121.19M
Accumulated OCI	-1.57M	-1.68M	1.2M	5.77M	-1.39M	-5.01M	-984K	0	0	0
Minority Interest	53.35M	-34.04M	-41.43M	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	427.58M	274.07M	201.92M	225.95M	290.15M	335.28M	237.4M	203.45M	310.19M	429.59M
Operating CF Margin %	0.43%	0.34%	0.25%	0.25%	0.3%	0.38%	0.3%	0.24%	0.31%	0.37%
Operating CF Growth %	0.13%	-0.36%	-0.26%	0.12%	0.28%	0.16%	-0.29%	-0.14%	0.52%	0.38%
Net Income	-159.37M	-64.82M	18.46M	29.16M	97.6M	-68.44M	28.22M	44.3M	105M	172.23M
Depreciation & Amortization	229.13M	208.99M	188.56M	174.95M	191.01M	196.62M	182.83M	167.47M	169.56M	197.05M
Stock-Based Compensation	10.03M	8.97M	8.46M	7.39M	8.11M	10.55M	11.34M	11.93M	13M	14.65M
Deferred Taxes	49.99M	-25.2M	-59.76M	5.24M	-39.6M	-17.76M	10.38M	15.23M	35.66M	58.09M
Other Non-Cash Items	258.32M	97.21M	43.33M	22.39M	22.65M	195.22M	14.18M	-10.96M	14.98M	13.34M
Working Capital Changes	39.48M	48.92M	2.86M	-13.17M	10.37M	19.1M	-9.54M	-24.5M	-28M	-25.76M
Change in Receivables	9.02M	32.4M	-6.64M	-21.03M	3.25M	36.4M	4.45M	-19.97M	0	524K
Change in Inventory	16.28M	32.48M	-236K	4.21M	6.04M	3.97M	-12.99M	-10.52M	4.19M	-1.92M
Change in Payables	-626K	-21.89M	9.62M	14.96M	-12.73M	-15.09M	5.27M	13.53M	-12.17M	-15.85M
Cash from Investing+	-328.88M	-89.46M	-174.74M	-284.92M	-514.56M	-85.03M	16.11M	-130.92M	-232.49M	-1.16B
Capital Expenditures	-256.14M	-117.57M	-221.69M	-319.1M	-385.2M	-140.3M	-97.89M	-239.87M	-298.63M	-359.03M
CapEx % of Revenue	0.26%	0.15%	0.28%	0.35%	0.4%	0.16%	0.13%	0.28%	0.3%	0.31%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-72.74M	41.89M	46.95M	34.18M	84.66M	21.62M	30.65M	24.01M	-6.07M	65.14M
Cash from Financing+	-97.52M	-183.04M	-19.77M	54.05M	222.49M	-252.84M	-253.03M	-72.54M	-77.92M	733.55M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-41.58M	-34.92M	-34.06M	-58.29M	-78.53M	-88.83M	-89.34M	-90.31M	-95.8M	-110.37M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	392.9M	-8.11M	45.27M	4.9M	-20.48M	-6.82M	-8.59M	-3.15M	-9.04M	-17.8M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	171.44M	156.5M	-19.78M	-93.16M	-95.05M	194.98M	139.51M	-36.42M	11.55M	70.56M
FCF Margin %	0.17%	0.19%	-0.02%	-0.1%	-0.1%	0.22%	0.18%	-0.04%	0.01%	0.06%
FCF Growth %	2.06%	-0.09%	-1.13%	-3.71%	-0.02%	3.05%	-0.28%	-1.26%	1.32%	5.11%
FCF per Share	2.51	2.27	-0.28	-0.85	-0.69	1.29	0.92	-0.24	0.07	0.43
FCF Conversion (FCF/Net Income)	-3.23x	-5.02x	10.65x	10.73x	2.98x	-4.90x	8.41x	4.59x	2.95x	2.49x
Interest Paid	-101.73M	0	0	0	0	99.8M	100M	98.41M	107.77M	0
Taxes Paid	2.06M	0	0	0	0	94K	247K	407K	1.31M	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-9.67%	-7.41%	2.67%	2.67%	10.1%	-6.77%	3.09%	5.06%	12.13%	15.7%
Return on Invested Capital (ROIC)	8.82%	10.38%	9.37%	11.26%	11.07%	10.55%	9.32%	9.54%	13.03%	14.01%
Gross Margin	50.4%	52.93%	47.28%	48.66%	52.75%	56.89%	54.07%	50.39%	54.66%	60.39%
Net Margin	-13.28%	-6.76%	2.39%	2.33%	10.08%	-7.82%	3.61%	5.24%	10.6%	14.88%
Debt / Equity	2.02x	2.10x	1.93x	1.82x	1.71x	1.82x	1.74x	1.82x	1.83x	1.67x
Interest Coverage	3.45x	3.71x	3.00x	3.63x	3.74x	3.71x	2.92x	3.05x	3.81x	4.53x
FCF Conversion	-3.23x	-5.02x	10.65x	10.73x	2.98x	-4.90x	8.41x	4.59x	2.95x	2.49x
Revenue Growth	4.06%	-19.14%	-1.54%	13.82%	6.75%	-9.38%	-10.69%	8.2%	17.12%	16.89%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Contract Operations	-	-	-	276.77M	3.96M	2.28M	-	-	809.44M	980.4M
Contract Operations Growth	-	-	-	-	-98.57%	-42.40%	-	-	-	21.12%
Aftermarket Services	-	-	-	-	122.08M	136.05M	-	-	180.9M	177.19M
Aftermarket Services Growth	-	-	-	-	-	11.45%	-	-	-	-2.05%
Contract Operations	-	-	-	-	-	-	770K	231.92M	-	-
Contract Operations Growth	-	-	-	-	-	-	-	30019.87%	-	-
Aftermarket Services	216.94M	159.24M	183.73M	142.48M	-	-	133.15M	167.77M	-	-
Aftermarket Services Growth	-	-26.60%	15.38%	-22.46%	-	-	-	26.00%	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America Contract Operations	781.17M	647.83M	610.92M	-	-	-	-	-	-	-
North America Contract Operations Growth	-	-17.07%	-5.70%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Archrock, Inc. (AROC) has a price-to-earnings (P/E) ratio of 24.9x. This is roughly in line with market averages.

Growth & Financials

Archrock, Inc. (AROC) reported $1.44B in revenue for fiscal year 2024. This represents a 45% decrease from $2.61B in 2011.

Archrock, Inc. (AROC) grew revenue by 16.9% over the past year. This is strong growth.

Yes, Archrock, Inc. (AROC) is profitable, generating $265.3M in net income for fiscal year 2024 (14.9% net margin).

Dividend & Returns

Yes, Archrock, Inc. (AROC) pays a dividend with a yield of 2.60%. This makes it attractive for income-focused investors.

Archrock, Inc. (AROC) has a return on equity (ROE) of 15.7%. This is reasonable for most industries.

Archrock, Inc. (AROC) generated $19.3M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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