Archrock Inc.
Find Ratings ReportsARCHROCK INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. ARCHROCK INC has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 259.59 | 218.87 |
EBITDA ($mil) | 114.29 | 78.9 |
EBIT ($mil) | 71.6 | 38.99 |
Net Income ($mil) | 33.0 | 10.46 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1.34 | 1.57 |
Total Assets ($mil) | 2655.95 | 2598.75 |
Total Debt ($mil) | 1600.3 | 1566.44 |
Equity ($mil) | 871.02 | 860.69 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 56.74 | 50.31 |
EBITDA Margin | 44.02 | 36.04 |
Operating Margin | 27.58 | 17.81 |
Sales Turnover | 0.37 | 0.33 |
Return on Assets | 3.95 | 1.7 |
Return on Equity | 12.05 | 5.15 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.4 | 1.56 |
Debt/Capital | 0.65 | 0.65 |
Interest Expense | 27.94 | 26.38 |
Interest Coverage | 2.56 | 1.48 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 155.96 | 155.63 |
Div / share | 0.16 | 0.15 |
EPS | 0.21 | 0.07 |
Book value / share | 5.58 | 5.53 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1328761.0 | 1314729.0 |
BUY. ARCHROCK INC's P/E ratio indicates a discount compared to an average of 34.89 for the Machinery Manufacturing subsector and a value on par with the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.35 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ARCHROCK INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AROC 27.90 | Peers 34.89 | AROC 9.40 | Peers 35.56 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AROC is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AROC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AROC 15.84 | Peers 25.65 | AROC 0.62 | Peers 5.15 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AROC is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AROC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AROC 3.35 | Peers 15.81 | AROC 131.03 | Peers 20.44 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AROC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AROC is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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AROC 2.94 | Peers 8.34 | AROC 17.12 | Peers 14.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AROC is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AROC has a sales growth rate that exceeds its peers. |
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