📊 AROC Key Takeaways
Is Archrock, Inc. (AROC) a Good Investment?
Archrock demonstrates strong operational performance with 28.7% revenue growth and healthy operating margins (26.1%), supported by solid free cash flow generation of $72.4M. However, significant concerns exist: net income grew only 1.0% despite strong revenue growth, minimal cash position of $4.5M, high leverage (Debt/Equity 1.57x), and exceptionally weak returns on equity (4.9%) and assets (1.7%), indicating inefficient capital deployment.
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 demonstrates robust market demand in natural gas transmission
- Healthy operating margins (26.1%) and gross margins (47.5%) reflect operational efficiency
- Positive free cash flow of $72.4M (19.4% FCF margin) provides cushion for debt service and operations
- 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
- Net income growth of only 1.0% YoY despite 28.7% revenue growth suggests margin compression or rising costs
- Critically low cash position of $4.5M creates liquidity vulnerability relative to $4.4B asset base
- High leverage (Debt/Equity 1.57x, 1.57x) with quick ratio of 0.91x limits financial flexibility and increases refinancing risk
- 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
- Net income growth trend versus revenue growth to determine if margin pressure is structural
- Operating cash flow consistency and free cash flow sustainability for debt service
- Cash balance and working capital position given current liquidity constraints
- 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 |
|---|---|---|---|
| Q1 2026 | $347.2M | $70.9M | $0.40 |
| 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 |
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 (HOLD) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AROC's key strengths?
Claude: Strong revenue growth of 28.7% YoY demonstrates robust market demand in natural gas transmission. Healthy operating margins (26.1%) and gross margins (47.5%) reflect 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: Net income growth of only 1.0% YoY despite 28.7% revenue growth suggests margin compression or rising costs. Critically low cash position of $4.5M creates liquidity vulnerability relative to $4.4B asset base. 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 $373.8M.
Does AROC pay dividends?
Archrock, Inc. pays dividends, with $39.9M 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 $0.41.
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 May 2026, Archrock, Inc. has a BUY rating with 75% 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 4.9% (sector avg: 14%), net margin of 19.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
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 $185.9M, with capital expenditures of $113.5M. FCF margin is 19.4%.
How does AROC compare to other Energy stocks?
Vs Energy sector averages: Net margin 19.7% (avg: 12%), ROE 4.9% (avg: 14%), current ratio 1.41 (avg: 1.3).
Is Archrock, Inc. carrying too much debt?
AROC has a debt-to-equity ratio of 1.57x, which is above the Energy sector average of 0.6x. However, the current ratio of 1.41 suggests adequate short-term liquidity.