Bull Rankings model

Archrock, Inc. (AROC) stock analysis

Oil & Gas Equipment & Services. Scored on the same transparent model behind the daily rankings.

★
AROC
Archrock, Inc. · Oil & Gas Equipment & Services
62.6Score
$30.28Oct 9 close$5.3B
1Y Target$42.38Analyst consensus · 8 analysts
5Y Target$62.04Compound horizon
10Y Target$92.03Long-dated conviction
FCF$291mTTM · 06/26
C
FCF $291m — modest; watch for margin expansion · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+28.7%FY YoY
A-
Revenue +28.7% — strong growth, well above S&P median (~7%) · Computed from the last two annual revenue figures (FY YoY).
D/E1.52
C
D/E 1.52 — more levered than most Energy peers (≈90th pctile)
P/E16.3x
B
P/E 16.3 — near the Energy median (≈60th pctile)
PEG1.20
B+
PEG 1.20 — near fair value (1.0 is the usual benchmark)

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 62.6
Quality77.0
Growth50.0
Value63.7
Why this score
  • Raising its dividend
  • Cyclical growth
Entry · Margin of safety
52-week rangeMid-range
28% off the 12-month high
vs DCF fair value3% belowest. fair value ~$31
What the price assumes: free cash flow growing about 7% next year, slowing to 4% a year by year ten — vs a starting rate of ~11% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Oil & Gas Equipment & Services · market cap $5.3b. Down 28% from 52-week high of $42.23 — deep drawdown territory. Revenue growing +29% — in hypergrowth territory. 8 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $42.38 (implying +40% upside).
Moat
Net margin 22% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 22% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
Production-cost sensitivity — top-quartile cost producers generate cash through the cycle while marginal producers burn it; watch the cost-per-unit trend, not just headline revenue.
Horizon
1-3 yr $42.38 (8-analyst consensus) — fundamentals + valuation re-rating. 5 yr $62.04 at ~15% CAGR — compounding case rests on the competitive position widening. 10 yr $92.03 if current growth sustains into durable earnings power.

AROC vs the Top Picks average

PillarAROCBook avgDiff
Quality7783-6
Growth5089-39
Value6476-12

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
+4.0 over 82 daily scores
From 58.6 (Jun 22) → 62.6 (now)

One point per daily run; read From → To for the actual range.

AROC at a glance

THE BULL RANKINGS SCORECARD62.6/ 100 · BULL SCOREPEER MEDIANQUALITY77.0GROWTH50.0VALUE63.7Reverse-DCF · Price implies ~7% growth a year from here.
PRICE vs OUR DCF FAIR VALUE$28.3$35.9FAIR-VALUE RANGE$30.3PRICEOur DCF fair value ~$31.2 · price $30.3 is 3% below it.
ONE-YEAR MOVE VS ITS BETAFLATThis stock+27%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
WHERE THIS SCORE SITS0255075100AROC 62.6Top 22% of 1,709 companies on the quality-growth score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.7%
90-day change-9.4%
Forward EPS estimate$2.18

Over the last 90 days, what analysts expect AROC to earn is materially lower (-9.4%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
66
Position size
$1,998
4.0% of portfolio
Stop price
$22.71
25% below $30.28
$ at risk if stopped
$499.62
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Archrock, Inc. (AROC): score, valuation & FAQ

Archrock, Inc. (AROC) is an Oil & Gas Equipment & Services company that scores 62.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (A-) and PEG (B+). On valuation, AROC sits about 3% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow growing about 7% next year, slowing to 4% a year by year ten.

Is AROC a good stock to buy?

Bull Rankings scores AROC 62.6 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A-) and PEG (B+). A score is a quantitative screen of Archrock, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does AROC score 62.6 on Bull Rankings?

The score leans on quality at 77.0 out of 100, with growth the weakest pillar at 50.0 — the three combine geometrically, so a weak one cannot be papered over by a strong one. AROC earns its highest marks on Rev (A-) and PEG (B+). Each signal is graded against sector-aware thresholds rather than one absolute bar, so AROC is measured against Oil & Gas Equipment & Services peers, not against the market as a whole.

Is AROC overvalued or undervalued?

Based on $30.28, AROC sits about 3% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow growing about 7% next year, slowing to 4% a year by year ten. It trades at a 16.3x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in AROC?

Production-cost sensitivity — top-quartile cost producers generate cash through the cycle while marginal producers burn it; watch the cost-per-unit trend, not just headline revenue.

New to these metrics? See the guides and the methodology.

More Oil & Gas — Services stocks by score

All Energy rankings →

Analyze another ticker →