AROC

Energy

Archrock, Inc. · Oil & Gas Equipment & Services · $7B

UQS Score — Balanced Preset
50.4
Below Average

Archrock, Inc. scores 50.4/100 using the Balanced preset.

UQS vs Energy Sector
AROC
50.4
Sector avg
43.5
Quality
Good
Moat
Weak
Growth
Good
Risk
Weak
Valuation
Neutral

What is Archrock, Inc.?

Archrock, Inc. is a US-based energy infrastructure company specializing in natural gas compression services. Operating across two business segments, it serves oil and natural gas producers throughout the United States.

Archrock designs, sources, owns, installs, operates, and maintains a fleet of natural gas compression equipment under long-term contract arrangements. This contract operations segment generates recurring revenue by keeping customer gas moving through pipelines and gathering systems. A second segment — aftermarket services — sells parts, components, and provides maintenance, overhaul, and reconfiguration work for compression equipment owned by third parties, diversifying the company's revenue base.

Archrock was founded in 1990 and is headquartered in Houston, Texas.

  • Contract natural gas compression services for oil and gas producers
  • Owned and operated compression equipment fleet
  • Aftermarket parts and component sales
  • Compression equipment maintenance, overhaul, and repair
  • Reconfiguration services for third-party compression assets

Is AROC a Good Stock to Buy?

UQS Score rates AROC as Good overall, reflecting a balanced but nuanced profile across its five pillars.

Archrock's standout characteristic is its Growth pillar, which ranks among the stronger readings in the energy infrastructure space. The Quality pillar also registers as Good, suggesting the business generates reasonably dependable returns relative to its asset base. Together, these pillars reflect a company benefiting from sustained demand for natural gas compression infrastructure.

The Moat and Risk pillars both register as Weak, pointing to limited competitive differentiation and meaningful exposure to energy-sector volatility and leverage considerations.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does AROC pay dividends?

Yes — Archrock, Inc. pays a dividend.

Archrock pays a regular dividend, which is relatively uncommon among mid-cap energy infrastructure companies still investing heavily in fleet expansion. The dividend reflects the recurring, contract-based nature of compression revenues, which provide more predictable cash flows than upstream energy businesses. Income-focused investors often view contract operations models as better suited to sustaining distributions through commodity cycles.

When does AROC report earnings?

Archrock reports earnings on a quarterly cadence, typical for US-listed equities.

The company's Growth pillar suggests revenue and operational momentum have been tracking above what might be expected for a mid-cap energy infrastructure name. Contract operations tend to provide visibility into near-term results, though aftermarket services can introduce some variability quarter to quarter.

For the most recent quarter's results and guidance, visit Archrock's investor relations page directly.

AROC Price History

+382.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Archrock, Inc.?

$
Today it would be worth
$49,675
That's a +397% total return, or +37.8% annualized.

Based on Archrock, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

AROC Long-term Outlook

Archrock's Strong Growth pillar points to a business benefiting from rising demand for natural gas compression capacity across US basins. The contract operations model provides revenue visibility that supports continued investment in fleet growth. However, the Weak Risk pillar serves as a reminder that energy infrastructure companies carry balance sheet and commodity-cycle sensitivities that can weigh on outcomes if conditions shift.

Growth drivers

  • Expanding US natural gas production requiring more compression infrastructure
  • Long-term contract structure providing recurring, predictable revenue
  • Aftermarket services offering incremental growth alongside fleet expansion

Key risks

  • Elevated leverage typical of asset-heavy infrastructure businesses
  • Exposure to energy sector cyclicality and natural gas demand shifts
  • Limited moat may constrain pricing power relative to peers

AROC vs Peers

Archrock competes within a broader energy services and infrastructure landscape alongside companies with distinct business models.

VALAROC scores higher
Valaris Limited

Valaris focuses on offshore drilling rig operations globally, making it a very different risk and revenue profile compared to Archrock's onshore compression services.

NOVAROC scores higher
NOV Inc.

NOV is a diversified oilfield equipment and technology manufacturer, operating across a much broader product portfolio than Archrock's compression-focused model.

KGSSimilar UQS
Kodiak Gas Services, Inc.

Kodiak Gas Services is Archrock's closest direct peer, also providing contract compression services to US oil and gas producers.

Frequently Asked Questions

What does Archrock do?

Archrock owns and operates a fleet of natural gas compression equipment, providing compression services to oil and gas producers under long-term contracts. It also offers aftermarket services — including parts sales, maintenance, and overhaul — for compression equipment owned by third parties.

Does AROC pay dividends?

Yes, Archrock pays a regular dividend. The company's contract operations model generates recurring cash flows that support dividend distributions. Investors should check Archrock's investor relations page for the current dividend rate and payment schedule.

When does AROC report earnings?

Archrock reports on a quarterly cadence, as is standard for US-listed companies. Specific upcoming earnings dates are best confirmed through Archrock's investor relations page or a financial data provider, as our platform does not publish forward earnings dates.

Is AROC a good stock to buy?

UQS Score rates AROC as Good overall. The Growth pillar is Strong and Quality is Good, but the Moat and Risk pillars are both Weak. Whether AROC fits a portfolio depends on an investor's tolerance for energy-sector risk and preference for dividend income. The full pillar breakdown is available to Pro members.

Is AROC overvalued?

AROC's Valuation pillar is rated Neutral, suggesting the market is pricing the stock in line with its fundamental profile rather than at a clear premium or discount. A Neutral valuation reading means neither a compelling bargain nor an obvious overpay relative to the UQS framework.

How does AROC compare to its competitors?

Among its closest peers, Kodiak Gas Services operates a similar contract compression model. NOV and Valaris serve different parts of the energy services market. Archrock's contract-heavy revenue structure distinguishes it from more cyclical equipment manufacturers and offshore drillers.

What is AROC's market cap bracket?

Archrock is classified as a mid-cap company. This places it in a segment of the market that often balances growth potential with more established operations than smaller-cap peers, though mid-caps can carry more volatility than large-cap energy names.

Who founded Archrock?

Archrock traces its roots to 1990. The company was formerly known as Exterran Holdings, Inc. and adopted the Archrock name in November 2015 following a corporate restructuring. Full founding history is publicly available through the company's official filings.

Is AROC a long-term quality investment?

From a long-term quality standpoint, AROC's Good overall UQS Score reflects genuine strengths in growth and business quality, tempered by Weak readings in moat and risk. Long-term investors should weigh the recurring contract revenue model against the company's energy-sector exposure and balance sheet considerations.

What is the main competitive advantage of Archrock?

Archrock's primary advantage lies in its large owned compression fleet and long-term service contracts, which create switching costs and recurring revenue. However, the UQS Moat pillar rates this advantage as Weak, indicating that differentiation from competitors is limited in the broader compression services market.

What sector does AROC belong to?

Archrock operates in the Energy sector, specifically within energy infrastructure and services. Its focus on natural gas compression ties its business closely to US natural gas production activity rather than direct commodity price exposure.

Is AROC a growth stock or value stock?

AROC shows characteristics of both. The Growth pillar is rated Strong, reflecting above-average expansion in the business. The Valuation pillar is Neutral, meaning it is not priced as a deep-value name. Investors seeking growth within energy infrastructure may find the combination worth examining through a Pro account.

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Pro Analysis

AROC — Score History

404550556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 30/36 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202650.163.836.069.230.045.8-0.3
May 22, 202650.463.836.069.230.047.2+0.1
May 21, 202650.363.836.069.230.046.6+0.4
May 20, 202649.963.836.069.230.044.5+0.1
May 19, 202649.863.836.069.230.043.7-0.3
May 17, 202650.163.836.069.230.045.5-1.1
May 16, 202651.263.836.072.230.048.70.0
May 15, 202651.263.936.072.230.048.9-0.1
May 14, 202651.363.936.072.230.049.60.0
May 13, 202651.363.936.072.230.049.2-0.1

AROC — Pillar Breakdown

Quality

63.8/100 (25%)

Archrock, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsModerate

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationModerate

Free cash flow relative to market value.

Growth

69.2/100 (20%)

Archrock, Inc. demonstrates healthy growth trends across revenue and earnings.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

30.0/100 (15%)

Archrock, Inc. presents elevated risk with concerns around leverage or financial stability.

Financial LeverageWeak

Debt levels relative to earnings capacity.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

47.6/100 (15%)

Archrock, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

36/100 (25%)

Archrock, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for AROC.

Score Composition

Quality
63.8×25%15.9
Growth
69.2×20%13.8
Risk
30.0×15%4.5
Valuation
47.6×15%7.1
Moat
36.0×25%9.0
Total
50.4Below Average

Financial Data

More Stock Analysis

How is the AROC UQS Score Calculated?

The UQS (Unified Quality Score) for Archrock, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Archrock, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Archrock, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.