📊 AROC Key Takeaways
Is Archrock, Inc. (AROC) a Good Investment?
Archrock demonstrates strong operational performance with robust 28.7% revenue growth and exceptional profitability margins (48.6% gross, 28.4% operating). The company generates substantial operating cash flow ($622.1M) that exceeds capital requirements, though elevated leverage (1.62x debt-to-equity) and tight liquidity warrant monitoring.
Archrock shows strong underlying fundamentals with robust revenue growth, high margins, and solid cash generation supported by strong operating performance. The balance sheet is still meaningfully leveraged and free cash flow remains constrained by heavy capital spending, but interest coverage and profitability indicate the company is managing that leverage effectively. Overall, the business appears fundamentally strong, with growth quality that is good but not without balance-sheet and capital-intensity risks.
Why Buy Archrock, Inc. Stock? AROC Key Strengths
- Strong revenue growth of 28.7% YoY indicates robust demand and market positioning in natural gas transmission
- Excellent profitability with 21.6% net margin and 28.4% operating margin demonstrating operational efficiency
- Healthy interest coverage ratio of 15.5x provides substantial debt service capacity despite high leverage
- Positive free cash flow generation of $119.6M after capital expenditures supports sustainability
- High ROE of 21.6% indicates effective capital deployment and shareholder value creation
- Strong insider activity with 33 Form 4 filings suggests management confidence
- Revenue growth of 28.7% with strong gross, operating, and net margins indicates solid operating leverage and demand strength
- ROE of 21.6% and interest coverage of 15.5x reflect strong profitability and manageable debt servicing capacity
- Operating cash flow of $622.11M provides meaningful internal funding support despite a capital-intensive business model
AROC Stock Risks: Archrock, Inc. Investment Risks
- Elevated leverage with debt-to-equity ratio of 1.62x and $2.4B long-term debt creates refinancing risk in rising rate environment
- Minimal cash reserves of $1.6M provide insufficient liquidity buffer for unexpected disruptions
- Quick ratio of 0.99x indicates potential working capital pressure and limited liquid asset coverage
- FCF margin of 8.0% is modest relative to revenue growth, suggesting capital intensity may constrain distributions
- Natural gas sector exposure to regulatory and energy transition risks over long term
- Long-term debt of $2.41B and debt-to-equity of 1.62x leave the company exposed to leverage-related pressure if conditions weaken
- Cash on hand is very low at $1.55M, limiting immediate balance-sheet flexibility
- Free cash flow is only $119.64M after heavy capex, so sustained growth requires continued strong execution and disciplined capital allocation
Key Metrics to Watch
- Operating cash flow sustainability and capital expenditure trends
- Debt levels and refinancing activities given current leverage profile
- Gross and operating margin maintenance amid commodity price fluctuations
- Revenue growth sustainability beyond the strong 28.7% YoY comparison
- Free cash flow conversion and cash balance accumulation
- Free cash flow conversion after capital expenditures
- Leverage trends including long-term debt and interest coverage
Archrock, Inc. (AROC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Archrock, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AROC Profit Margin, ROE & Profitability Analysis
AROC vs Energy Sector: How Archrock, Inc. Compares
How Archrock, Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Archrock, Inc. Stock Overvalued? AROC Valuation Analysis 2026
Based on fundamental analysis, Archrock, Inc. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Archrock, Inc. Balance Sheet: AROC Debt, Cash & Liquidity
AROC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Archrock, Inc.'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.67 reflects profitable operations.
AROC Revenue Growth, EPS Growth & YoY Performance
AROC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $292.2M | $37.5M | $0.22 |
| Q2 2025 | $270.5M | $34.4M | $0.22 |
| Q1 2025 | $268.5M | $40.5M | $0.26 |
| Q3 2024 | $253.4M | $30.9M | $0.20 |
| Q2 2024 | $247.5M | $24.7M | $0.16 |
| Q1 2024 | $229.8M | $16.5M | $0.10 |
| Q3 2023 | $213.7M | $15.4M | $0.10 |
| Q2 2023 | $215.8M | $16.7M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Archrock, Inc. Dividends, Buybacks & Capital Allocation
AROC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Archrock, Inc. (CIK: 0001389050)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AROC
What is the AI rating for AROC?
Archrock, Inc. (AROC) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AROC's key strengths?
Claude: Strong revenue growth of 28.7% YoY indicates robust demand and market positioning in natural gas transmission. Excellent profitability with 21.6% net margin and 28.4% operating margin demonstrating operational efficiency. ChatGPT: Revenue growth of 28.7% with strong gross, operating, and net margins indicates solid operating leverage and demand strength. ROE of 21.6% and interest coverage of 15.5x reflect strong profitability and manageable debt servicing capacity.
What are the risks of investing in AROC?
Claude: Elevated leverage with debt-to-equity ratio of 1.62x and $2.4B long-term debt creates refinancing risk in rising rate environment. Minimal cash reserves of $1.6M provide insufficient liquidity buffer for unexpected disruptions. ChatGPT: Long-term debt of $2.41B and debt-to-equity of 1.62x leave the company exposed to leverage-related pressure if conditions weaken. Cash on hand is very low at $1.55M, limiting immediate balance-sheet flexibility.
What is AROC's revenue and growth?
Archrock, Inc. reported revenue of $1.5B.
Does AROC pay dividends?
Archrock, Inc. pays dividends, with $141.6M distributed to shareholders in the trailing twelve months.
Where can I find AROC SEC filings?
Official SEC filings for Archrock, Inc. (CIK: 0001389050) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AROC's EPS?
Archrock, Inc. has a diluted EPS of $1.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AROC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Archrock, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AROC stock overvalued or undervalued?
Valuation metrics for AROC: ROE of 21.6% (sector avg: 14%), net margin of 21.6% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy AROC stock in 2026?
Our dual AI analysis gives Archrock, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AROC's free cash flow?
Archrock, Inc.'s operating cash flow is $622.1M, with capital expenditures of $502.5M. FCF margin is 8.0%.
How does AROC compare to other Energy stocks?
Vs Energy sector averages: Net margin 21.6% (avg: 12%), ROE 21.6% (avg: 14%), current ratio 1.54 (avg: 1.3).
Is Archrock, Inc. carrying too much debt?
AROC has a debt-to-equity ratio of 1.62x, which is above the Energy sector average of 0.6x. However, the current ratio of 1.54 suggests adequate short-term liquidity.