Archrock, Inc. (AROC) AI Stock Analysis

Archrock, Inc., based in Houston, Texas, operates as an energy infrastructure provider in the United States across two core segments: Contract Operations and Aftermarket Services. Under Contract Operations, the company designs, sources, owns, installs, operates, repairs, and maintains a fleet of natural gas compression equipment for clients in the oil and natural gas sector. Through Aftermarket Services, Archrock sells parts and components while providing operation, maintenance, overhaul, and reconfiguration services to customers owning their own compression equipment. Employing 1,350 people, the company has operated in the energy infrastructure market since its founding in 1990.

Archrock has generated steady multi-year expansion, posting a 5-year revenue compound annual growth rate of 11.2%. Annual revenue grew from $781.5M in FY2021 to $1.49B in FY2025, accelerated by 28.7% revenue growth in FY2025. Over the same timeframe, net income expanded from $28.2M in FY2021 to $322.3M in FY2025, driving net margin up to 21.6%. Over the trailing twelve months, revenue totaled $1.50B with an operating margin of 35.9%. In the latest quarter ending June 30, 2026, quarterly revenue fell 3.1% year-over-year, while quarterly earnings grew 5.9%.

As of June 30, 2026, Archrock held $2.0M in cash and short-term investments alongside total debt of $2.36B, resulting in net debt of $2.36B and a debt-to-equity ratio of 1.52. Total assets stood at $4.44B and the current ratio was 1.39. In FY2025, operating cash flow reached $622.1M and free cash flow was $119.6M. Capital allocation in FY2025 included $502.5M in capital expenditures, $141.6M paid in dividends, and $70.2M in share buybacks, while share count increased 14.6% over 5 years.

Archrock trades at a trailing P/E of 15.9x and a forward P/E of 14.3x, compared to medians of 15.0x and 12.7x for its US-listed Energy peers. Its EV/to/EBITDA of 8.8x and price-to-sales ratio of 3.4x also trade above peer group medians of 8.0x and 1.8x, respectively. The stock closed at $29.56 on October 16, 2026, trading 12.2% below its 200-day moving average. Over the past year, Archrock returned 27.9%, outperforming the S&P 500 return of 16.8%, and its 5-year return of 330.2% surpassed the index return of 83.0%.

Archrock pays an annualized forward dividend of $0.92 per share, corresponding to a dividend yield of 3.11% and a payout ratio of 46.1%. The company has distributed quarterly dividends for 13 consecutive years, delivering a 5-year annualized dividend growth rate of 6.6%. Its most recent ex-dividend date was August 4, 2026.

Wall Street sentiment is favorable, with 4 Strong Buy ratings, 3 Buy ratings, and no Hold or Sell recommendations. The mean price target of $42.38 implies a 43.4% upside relative to the closing price of $29.56. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.52B and EPS of $1.83, reflecting an EPS decline of 3.8%. Archrock has beaten EPS estimates in 1 of the last 4 quarters, with its next earnings report scheduled for October 27, 2026.

This page is an AI-written research summary of Archrock, Inc. (AROC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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