Archrock, Inc. (AROC) Stock

Archrock, Inc. (AROC) is a Utilities stock trading at $32.24 (as of 2026-08-20), with a market capitalization of $5.65B and a trailing P/E of 17.2. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Archrock, Inc. operates energy infrastructure businesses in the United States through two segments: Contract Operations and Aftermarket Services. It provides natural gas compression services using its owned fleet of compression equipment and also offers aftermarket support to customers who own compression equipment, including parts sales and maintenance, overhaul, and reconfiguration.

Understand Archrock, Inc.: how it makes money

Archrock operates a U.S. energy infrastructure business focused on designing, owning, and operating a fleet of natural gas compression equipment, and it makes money by selling contract natural gas compression services and related aftermarket parts and maintenance services.

The company earns most of its revenue by keeping its owned compression equipment contracted and active (contract operations), where utilization and horsepower sold drive service revenue, while aftermarket parts and maintenance add smaller, supplemental revenue.

Revenue by segment (latest quarter)
Contract Ops	$0.3B
Aftermarket	$0.0B

Business quality (Strong): Clear two-segment structure, with contract operations as the main revenue driver, and multiple fleet-focused operating metrics (utilization, time on location, horsepower sold) that map directly to how compression service capacity turns into revenue.

Valuation: At 23× earnings, AROC trades in line with the Utilities average (22×). Note: one-time items can distort reported P/E.

Bull case

Fleet utilization looks strong at quarter end, with Contract Operations Exit Fleet Utilization at 95% and Horsepower Utilization at Period End at 96%: Higher utilization supports converting owned compression equipment into contracted service output.
Execution on service turnaround appears to be improving, with Time on Location Improvement Versus 2021 of 64%: Improving time on location can help the fleet be deployed more efficiently across jobs.

Bear case

Revenue is concentrated in Contract Operations (Contract Operations Revenue of 0.33B, versus Aftermarket Services Revenue of 0.04B): If contract service demand or utilization weakens, total performance is likely to be pressured.
New build horsepower delivered is not reflected until revenue generation, with New Build Horsepower Delivered (Not Reflected Until Revenue Generation) at 19,500: There can be timing gaps between equipment delivery and when that capacity starts contributing to revenue.

Valuation — source: SEC EDGAR (first-party)
Price	$32.24
Market Cap	$5.65B
P/E Ratio	17.2
EV / EBITDA	12.4
Price / Book	3.64
Price / Sales	3.76
FCF Yield	5.0%
DCF Value (model)	$19.71
DCF Upside vs Price	-38.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.49B
Net Margin	21.6%
Revenue Growth (YoY)	-3.1%
EPS Growth (YoY)	5.6%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.15 (distress)

Valuation vs Sector & Industry
Stock P/E	17.2
Sector P/E (Utilities)	21.3
Industry P/E (Utilities)	20.6
vs Sector	-19.4%
vs Industry	-16.6%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($977.99M)
Institutional Holders Tracked	10
Congressional Trades (recent)	1

Company
Sector	Utilities
Industry	Utilities
CEO	D. Bradley Childers
Employees	1,300
Country	US
IPO Date	2007-08-21

Related Companies (Business model: Refining & Midstream Energy; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.