Archrock Inc. Common Stock (AROC)

Cyclical

FairStock Score: 62/100 — STEADY

Key Financials

Current Price$29.12
Market Cap$5.1B
P/E Ratio15.66
ROE22.19%
Dividend Yield2.92%
SectorEnergy

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn high returns on capital without heavy debt, and sell at a discount to intrinsic value. Archrock is a natural gas compression infrastructure company, and its filed figures show real improvement: in fiscal year 2025 it earned revenue of $1.5B, net income of $322.3M, and diluted EPS of $1.83, up from fiscal year 2024 revenue of $1.2B, net income of $172.2M, and diluted EPS of $1.05, which itself rose from fiscal year 2023 revenue of $990.3M, net income of $105.0M, and diluted EPS of $0.67. That is an excellent cyclical recovery. But the latest quarter is less dynamic: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $371.2M and net income was $66.7M, or $0.38 per diluted share, compared with fiscal Q2 2025 revenue of $383.2M, net income of $63.4M, and $0.36 per diluted share. Revenue slipped year over year while earnings still edged up.

In plain English: Archrock owns and services natural gas compression equipment, mostly through long-term contracts, plus parts and service work. The business has become more profitable over the last few years, but it is tied to the energy cycle and carries a lot of debt. At $30.68, the stock looks more expensive than a conservative asset-based value check would suggest, leaving less room for error.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer