Last Updated: 10 Nov 2024
Executive Summary
Archrock Inc. (AROC) is a leading energy infrastructure company in the United States. The company has a strong financial position, with a market capitalization of $3.98 billion, an EBITDA of $476.1 million, and a trailing PE ratio of 25.42. Archrock's shares are currently trading at $22.62, within the 52-week range of $13.16 to $23.08. The company has a strong analyst rating, with 1 Strong Buy and 3 Buy ratings. The consensus analyst target price is $24.75, implying a potential upside of 9.4%.
Company Overview
Archrock is headquartered in Houston, Texas, and provides a range of energy infrastructure services, including natural gas gathering, processing, and transportation. The company operates in 31 states and has a workforce of over 3,500 employees. Archrock's customers include major energy companies such as ExxonMobil, Chevron, and ConocoPhillips.
Fundamental Analysis
Archrock's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.5% over the past five years, and its EBITDA has grown at a CAGR of 6.2%. Archrock's profit margin is 13.2%, and its return on assets is 7.06%. The company has a strong balance sheet, with $1.2 billion in cash and equivalents and $2.3 billion in total debt.
Technical Analysis
Archrock's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, and the technical indicators are bullish. The relative strength index (RSI) is 65, which indicates that the stock is overbought but still has room to run.
Short Term Outlook
In the short term, Archrock's stock price is likely to continue to trend higher. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, the stock is currently trading at a premium to its peers, and a pullback could occur in the near term.
Long Term Outlook
In the long term, Archrock's stock price is likely to continue to grow. The company's strong competitive position and the growing demand for natural gas are likely to drive long-term growth. Archrock is also well-positioned to benefit from the transition to renewable energy, as the company can provide infrastructure for the transportation and storage of renewable energy sources.
Analyst Recommendations
The consensus analyst rating for Archrock is Buy. The average analyst target price is $24.75, implying a potential upside of 9.4%. Analysts are positive on Archrock's long-term growth prospects, but they are cautious about the stock's current valuation.
