Latest Ratios: P/E Ratio 20.6x · EV/EBITDA 10.8x · ROE 22.9%. (2000–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.6B | $4.5B | $4.0B | $2.4B | $1.4B | $1.1B | $1.3B | $1.4B | $820M | $731M | $911M |
| Enterprise Value | $9.1B | $7.0B | $6.2B | $4.0B | $2.9B | $2.7B | $3.0B | $3.2B | $2.3B | $2.1B | $2.3B |
| P/E Ratio → | 20.61 | 14.14 | 23.70 | 22.99 | 32.07 | 41.56 | — | 14.34 | 39.42 | 40.38 | — |
| P/S Ratio | 4.46 | 3.05 | 3.49 | 2.40 | 1.63 | 1.45 | 1.49 | 1.43 | 0.91 | 0.92 | 1.13 |
| P/B Ratio | 4.44 | 3.05 | 3.05 | 2.73 | 1.60 | 1.27 | 1.40 | 1.27 | 0.97 | 0.99 | 1.33 |
| P/FCF | 55.56 | 38.01 | 57.28 | 205.70 | — | 8.14 | 6.70 | — | — | — | 5.82 |
| P/OCF | 10.68 | 7.31 | 9.41 | 7.66 | 6.77 | 4.78 | 3.90 | 4.76 | 3.63 | 3.62 | 3.32 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.68 | 5.40 | 4.01 | 3.48 | 3.43 | 3.44 | 3.35 | 2.59 | 2.69 | 2.91 |
| EV / EBITDA | 10.83 | 8.32 | 8.30 | 6.72 | 6.21 | 5.42 | 5.14 | 5.58 | 4.56 | 4.70 | 4.52 |
| EV / EBIT | 15.75 | 11.83 | 17.03 | 15.37 | 20.32 | 19.65 | 15.09 | 15.91 | 14.33 | 27.48 | 22.66 |
| EV / FCF | — | 58.23 | 88.55 | 343.81 | — | 19.22 | 15.44 | — | — | — | 15.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.6% | 48.6% | 60.4% | 54.7% | 50.4% | 54.1% | 56.9% | 52.7% | 48.7% | 47.3% | 52.9% |
| Operating Margin | 38.7% | 38.7% | 48.4% | 42.9% | 36.5% | 40.4% | 44.9% | 40.6% | 37.4% | 33.5% | 38.6% |
| Net Profit Margin | 21.6% | 21.6% | 14.9% | 10.6% | 5.2% | 3.6% | -7.8% | 10.1% | 2.3% | 2.4% | -6.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 22.9% | 22.9% | 15.7% | 12.1% | 5.1% | 3.1% | -6.8% | 10.1% | 2.7% | 2.7% | -7.4% |
| ROA | 7.9% | 7.9% | 5.3% | 4.0% | 1.7% | 1.1% | -2.3% | 3.4% | 0.8% | 0.8% | -2.1% |
| ROIC | 11.6% | 11.6% | 14.0% | 13.0% | 9.5% | 9.3% | 10.6% | 11.1% | 11.3% | 9.4% | 10.4% |
| ROCE | 14.8% | 14.8% | 18.2% | 17.1% | 12.6% | 12.3% | 13.9% | 14.6% | 14.5% | 11.6% | 12.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.62 | 1.62 | 1.67 | 1.83 | 1.82 | 1.74 | 1.82 | 1.71 | 1.82 | 1.93 | 2.10 |
| Debt / EBITDA | 2.89 | 2.89 | 2.94 | 2.70 | 3.30 | 3.13 | 2.91 | 3.21 | 2.98 | 3.11 | 2.77 |
| Net Debt / Equity | — | 1.62 | 1.67 | 1.83 | 1.81 | 1.73 | 1.82 | 1.71 | 1.81 | 1.91 | 2.10 |
| Net Debt / EBITDA | 2.89 | 2.89 | 2.93 | 2.70 | 3.30 | 3.13 | 2.91 | 3.20 | 2.97 | 3.09 | 2.77 |
| Debt / FCF | — | 20.22 | 31.27 | 138.10 | — | 11.08 | 8.74 | — | — | — | 9.19 |
| Interest Coverage | 3.56 | 3.56 | 2.97 | 2.32 | 1.43 | 1.26 | 1.89 | 1.94 | 1.75 | 0.88 | 1.24 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.54 | 1.54 | 1.24 | 1.40 | 1.56 | 1.49 | 1.63 | 1.67 | 1.70 | 1.69 | 2.02 |
| Quick Ratio | 1.54 | 1.54 | 0.76 | 0.86 | 0.99 | 0.91 | 1.06 | 1.14 | 1.19 | 1.00 | 1.14 |
| Cash Ratio | 0.01 | 0.01 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | 0.04 | 0.08 | 0.03 |
| Asset Turnover | — | 0.34 | 0.30 | 0.37 | 0.33 | 0.30 | 0.31 | 0.31 | 0.35 | 0.33 | 0.33 |
| Inventory Turnover | — | — | 5.11 | 5.49 | 4.96 | 4.93 | 5.92 | 6.13 | 6.08 | 4.62 | 4.05 |
| Days Sales Outstanding | — | 45.03 | 41.77 | 45.73 | 59.37 | 49.01 | 43.56 | 54.77 | 65.88 | 52.09 | 50.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.1% | 3.1% | 2.7% | 4.0% | 6.6% | 7.9% | 6.8% | 5.7% | 7.1% | 4.7% | 3.8% |
| Payout Ratio | 43.9% | 43.9% | 64.1% | 91.2% | 203.9% | 316.6% | — | 80.7% | 276.7% | 179.7% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 7.1% | 4.2% | 4.4% | 3.1% | 2.4% | — | 7.0% | 2.5% | 2.5% | — |
| FCF Yield | 1.8% | 2.6% | 1.7% | 0.5% | — | 12.3% | 14.9% | — | — | — | 17.2% |
| Buyback Yield | 1.1% | 1.5% | 0.3% | 0.4% | 0.0% | 0.0% | 0.1% | 0.1% | 0.2% | 0.4% | 0.2% |
| Total Shareholder Yield | 3.2% | 4.7% | 3.1% | 4.4% | 6.6% | 7.9% | 6.9% | 5.8% | 7.3% | 5.0% | 4.0% |
| Shares Outstanding | — | $175M | $162M | $154M | $153M | $152M | $151M | $138M | $109M | $70M | $69M |
Liquidity and capital intensity
According to current market data, Archrock trades at a P/E of 22.80 and an EV/EBITDA of 11.67, which appears to price in significant growth expectations that may be disconnected from the company's recent margin volatility and the structural challenges inherent in its capital-intensive compression business model.
The current valuation multiples suggest investors are assigning a growth premium to Archrock, potentially overlooking the risks associated with its erratic profitability and high capital expenditure requirements. When compared to peers like USA Compression Partners, the valuation appears stretched, particularly given the lack of consistent free cash flow generation to support such a multiple.
As reported in financial statements, Archrock's ROIC has struggled to maintain momentum, fluctuating between 0.3% and 5.6% over the last ten quarters, which indicates that the company is failing to consistently generate returns that exceed its cost of capital in this highly asset-heavy industrial environment.
The inability to sustain a robust ROIC suggests that the company's strategy of fleet high-grading is not yet translating into superior capital efficiency. Investors should monitor whether the ongoing transition to electric motor drives will eventually improve these returns or if it will simply lock the company into a cycle of perpetual, low-return reinvestment.
Based on the reported figures, Archrock's cash conversion cycle has shown significant instability, with the CCC reaching as high as 73 days in 2025Q3, suggesting that the company's ability to efficiently manage its receivables and payables is frequently disrupted by operational timing and customer payment patterns.
The volatility in the cash conversion cycle highlights a lack of operational predictability, which complicates the company's liquidity management. The inconsistent DSO and DIO trends imply that Archrock may lack sufficient leverage over its customer base to enforce tighter payment terms, thereby pressuring its already thin cash reserves.
As indicated by recent filings, Archrock maintains a D/E ratio consistently above 1.50, which, when paired with a negligible cash balance of $1.55 million, suggests a highly vulnerable balance sheet that leaves little room for error in the event of a sector-wide downturn or operational shock.
The reliance on external financing to fund fleet expansion has resulted in a debt-heavy capital structure that appears increasingly unsustainable given the company's erratic earnings. The interest coverage ratios, which have hovered in the low single digits, warrant further investigation as they suggest the company is operating with a very thin margin of safety regarding its debt service obligations.
Investors frequently misapply dividend yield as a proxy for financial health in Archrock, failing to recognize that the company's erratic free cash flow generation makes the current payout potentially unsustainable without continued reliance on external debt financing to cover both capital expenditures and shareholder distributions.
Relying on dividend yield obscures the underlying reality that Archrock's cash generation is often insufficient to cover its heavy reinvestment needs. A more appropriate metric for this business model would be the ratio of free cash flow to total debt, which would better highlight the company's true ability to deleverage and sustain its operations without constant capital market access.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying AROC stock.
Archrock, Inc.'s current P/E ratio is 20.6x. The historical average is 25.9x. This places it at the 40th percentile of its historical range.
Archrock, Inc.'s current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.5x.
Archrock, Inc.'s return on equity (ROE) is 22.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -0.1%.
Based on historical data, Archrock, Inc. is trading at a P/E of 20.6x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Archrock, Inc.'s current dividend yield is 2.14% with a payout ratio of 43.9%.
Archrock, Inc. has 48.6% gross margin and 38.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Archrock, Inc.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.