Archrock, Inc. (AROC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-30.6%

$21.37

vs $30.82 price

Levered DCF

$9.93

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.18

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.06×	23.7×	22.99×	32.07×	41.56×	-19.24×	14.34×	39.42×
P/B	3.04×	3.05×	2.73×	1.6×	1.27×	1.4×	1.27×	0.97×
P/S	3.05×	3.48×	2.4×	1.63×	1.45×	1.49×	1.43×	0.91×
EV / EBITDA	8.23×	11.14×	9.27×	9.51×	8.5×	7.6×	8.2×	6.92×
Gross margin	48.6%	60.4%	54.7%	50.4%	54.1%	56.9%	52.7%	48.7%
Operating margin	38.7%	48.4%	42.9%	36.5%	40.4%	44.9%	40.6%	37.4%
Net margin	21.6%	14.9%	10.6%	5.2%	3.6%	-7.8%	10.1%	2.3%
Current ratio	1.54×	1.24×	1.4×	1.56×	1.49×	1.63×	1.67×	1.7×
Debt / equity	1.62×	1.67×	1.83×	1.82×	1.74×	1.82×	1.71×	1.82×
Interest coverage	3.48×	4.53×	3.81×	3.05×	2.92×	3.71×	3.74×	3.63×
Dividend yield	3.1%	2.7%	4.0%	6.6%	7.9%	6.8%	5.7%	7.1%
Payout ratio	43.9%	64.1%	91.2%	203.9%	316.6%	-129.8%	80.7%	276.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	21.6%	13.0%	12.1%	5.1%	3.2%	-7.3%	9.0%	2.5%
Return on invested capital	10.6%	11.4%	12.5%	9.2%	9.3%	11.7%	13.2%	11.6%
Return on assets	7.4%	4.5%	4.0%	1.7%	1.1%	-2.5%	3.1%	0.8%
Free cash flow yield	2.6%	1.7%	0.5%	-2.6%	12.3%	14.9%	-6.9%	-11.4%
Earnings yield	7.1%	4.3%	4.4%	3.2%	2.5%	-5.2%	7.1%	2.6%
Enterprise value	$7B	$6.2B	$4B	$2.9B	$2.7B	$3B	$3.2B	$2.3B
Net debt / EBITDA	2.86×	3.94×	3.73×	5.06×	4.9×	4.3×	4.7×	4.5×
Cash conversion cycle (days)	76	67	63	77	84	75	66	83