Archrock Stock Valuation

AROC
 Stock
  

USD 7.61  0.02  0.26%   

Do you wonder what the value of Archrock is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Archrock, is its stock price multiplied by the total number of shares outstanding, calculating Archrock's enterprise value requires a different approach. It uses Archrock's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Archrock Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 169.08 Million. The current year Tangible Asset Value is expected to grow to about 2.7 B, whereas Enterprise Value is forecasted to decline to about 2.6 B.
Archrock shows a prevailing Real Value of $8.32 per share. The current price of the firm is $7.61. At this time, the firm appears to be undervalued. Our model approximates the value of Archrock from analyzing the firm fundamentals such as profit margin of 3.29 %, and Return On Equity of 2.87 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
Archrock Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Archrock's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Archrock Most Recent Valuation Data

Price Book
1.36
Enterprise Value
2.7 B
Enterprise Value Ebitda
8.42
Price Sales
1.46
Forward PE
25.38
Trailing PE
32.85
Enterprise Value Revenue
3.4
Undervalued
Today 7.61
Please note that Archrock's price fluctuation is somewhat reliable at this time. Calculation of the real value of Archrock is based on 3 months time horizon. Increasing Archrock's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Archrock is useful when determining the fair value of the Archrock stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Archrock. Since Archrock is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Archrock Stock. However, Archrock's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
8.32
Real Value
10.98
Upside
Estimating the potential upside or downside of Archrock helps investors to forecast how Archrock stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Archrock more accurately as focusing exclusively on Archrock's fundamentals will not take into account other important factors:
Earnings
Estimates (1)
LowProjected EPSHigh
0.230.230.23
Details
Hype
Prediction
LowEstimated ValueHigh
4.907.5610.22
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.330.390.44
Details
2 Analysts
Consensus
LowTarget PriceHigh
10.0010.5011.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Archrock's intrinsic value based on its ongoing forecasts of Archrock's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Archrock's closest peers. When choosing an evaluation method for Archrock, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Archrock Valuation Drivers Correlation

Many accounts on the financial statements of Archrock are highly interrelated and sometimes correlated. Consequently, when conducting Archrock's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Archrock
Click cells to compare fundamentals

Archrock Valuation Trend

Knowing Archrock's actual value is paramount for traders to make sound investment determinations. Archrock's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Archrock's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Archrock's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Archrock Market Cap

Archrock is rated below average in market capitalization category among related companies. Market capitalization of Oil & Gas Equipment & Services industry is presently estimated at about 1.49 Trillion. Archrock adds roughly 1.25 Billion in market capitalization claiming only tiny portion of all equities under Oil & Gas Equipment & Services industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Archrock Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Archrock's current stock value. Our valuation model uses many indicators to compare Archrock value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Archrock competition to find correlations between indicators driving Archrock's intrinsic value. More Info.
Archrock is rated below average in beta category among related companies. It is rated below average in price to book category among related companies fabricating about  0.77  of Price to Book per Beta. The ratio of Beta to Price to Book for Archrock is roughly  1.30 . The current year Price to Book Value is expected to grow to 1.32. Comparative valuation analysis is a catch-all model that can be used if you cannot value Archrock by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Archrock's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Archrock's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Archrock's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Archrock and how it compares across the competition.

About Archrock Valuation

The equity valuation mechanism determines the current worth of Archrock on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Archrock. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Archrock based exclusively on its fundamental and basic technical indicators. By analyzing Archrock's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Archrock's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Archrock. We calculate exposure to Archrock's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Archrock's related companies.
Fiscal Year End
December
Industry
Oil & Gas Equipment & Services
Concentration
Oil & Gas Equipment & Services
Full Time Employees
1.1 K
Service Category
Energy Equipment & Services
Employer Id Number
74-3204509
Last ReportedProjected for 2022
Gross Profit422.5 M435.7 M
Profit Margin 0.036  0.0388 
Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas. Archrock operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 1100 people.

Archrock Quarterly Enterprise Value

2.81 Billion

Archrock's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Archrock's value is low or high relative to the company's performance and growth projections. Determining the market value of Archrock can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Archrock represents a small ownership stake in the entity. As a stockholder of Archrock, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Archrock Dividends Analysis For Valuation

As of August 10, 2022, Payment of Dividends and Other Cash Distributions is expected to decline to about (96.4 M). In addition to that, Dividend Yield is expected to decline to 0.07. Archrock Earning Before Interest and Taxes EBIT is projected to increase significantly based on the last few years of reporting. The past year's Earning Before Interest and Taxes EBIT was at 147.1 Million. The current year Earnings per Basic Share is expected to grow to 0.19, whereas Accumulated Retained Earnings Deficit are forecasted to decline to (2.7 B).
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-89.3 M-96.4 M
Dividend Yield 0.08  0.07 
Dividends per Basic Common Share 0.52  0.51 
There are various types of dividends Archrock can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Archrock shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Archrock directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Archrock pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Archrock by the value of the dividends paid out.

Archrock Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Archrock does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.69
Earnings Quarterly Growth-58.70%
Revenue Growth0.90%
Payout Ratio349.72%
Enterprise Value To Ebitda9.21
Earnings Growth-70.10%
Enterprise Value To Revenue3.63

Archrock Current Valuation Indicators

Valuation refers to the process of determining the present value of Archrock and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Archrock we look at many different elements of the entity such as Archrock's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Archrock's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Archrock's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Archrock, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Archrock's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Archrock's worth.
Please continue to Trending Equities. Note that the Archrock information on this page should be used as a complementary analysis to other Archrock's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for Archrock Stock analysis

When running Archrock price analysis, check to measure Archrock's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Archrock is operating at the current time. Most of Archrock's value examination focuses on studying past and present price action to predict the probability of Archrock's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Archrock's price. Additionally, you may evaluate how the addition of Archrock to your portfolios can decrease your overall portfolio volatility.
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Is Archrock's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Archrock. If investors know Archrock will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Archrock listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.93
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0313
Return On Equity
0.0378
The market value of Archrock is measured differently than its book value, which is the value of Archrock that is recorded on the company's balance sheet. Investors also form their own opinion of Archrock's value that differs from its market value or its book value, called intrinsic value, which is Archrock's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Archrock's market value can be influenced by many factors that don't directly affect Archrock's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Archrock's value and its price as these two are different measures arrived at by different means. Investors typically determine Archrock value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archrock's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.