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Archrock

DB:54E
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
54E
DB
$553M
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Archrock, Inc. operates as a midstream energy infrastructure company in the United States. The last earnings update was 45 days ago. More info.


Add to Portfolio Compare Print
  • Archrock has significant price volatility in the past 3 months.
54E Share Price and Events
7 Day Returns
-1.2%
DB:54E
8.1%
Europe Energy Services
-0.6%
DE Market
1 Year Returns
-64.1%
DB:54E
-57.2%
Europe Energy Services
-20.9%
DE Market
54E Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Archrock (54E) -1.2% -41.3% -64.4% -64.1% -73.8% -89.9%
Europe Energy Services 8.1% -27.8% -50.1% -57.2% -65.6% -87.6%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • 54E underperformed the Energy Services industry which returned -57.2% over the past year.
  • 54E underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
54E
Industry
5yr Volatility vs Market

54E Value

 Is Archrock undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Archrock to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Archrock.

DB:54E Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:54E
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Energy Services Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.912 (1 + (1- 21%) (336.73%))
2.565
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:54E using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Archrock is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:54E DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 118.00 Analyst x1 106.80
2021 132.00 Analyst x1 108.13
2022 141.37 Est @ 7.1% 104.81
2023 148.23 Est @ 4.85% 99.46
2024 153.10 Est @ 3.28% 92.97
2025 156.43 Est @ 2.18% 85.98
2026 158.63 Est @ 1.41% 78.91
2027 160.01 Est @ 0.87% 72.04
2028 160.80 Est @ 0.49% 65.52
2029 161.16 Est @ 0.23% 59.43
Present value of next 10 years cash flows $874.00
DB:54E DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $161.16 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$1,475.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,475.51 ÷ (1 + 10.49%)10
$544.14
DB:54E Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $874.00 + $544.14
$1,418.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,418.14 / 152.87
$9.28
DB:54E Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:54E represents 0.91061x of NYSE:AROC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91061x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 9.28 x 0.91061
€8.45
Value per share (EUR) From above. €8.45
Current discount Discount to share price of €3.26
= -1 x (€3.26 - €8.45) / €8.45
61.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Archrock is available for.
Intrinsic value
>50%
Share price is €3.26 vs Future cash flow value of €8.45
Current Discount Checks
For Archrock to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Archrock's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Archrock's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Archrock's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Archrock's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:54E PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.70
NYSE:AROC Share Price ** NYSE (2020-04-06) in USD $3.58
Europe Energy Services Industry PE Ratio Median Figure of 31 Publicly-Listed Energy Services Companies 8.85x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Archrock.

DB:54E PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AROC Share Price ÷ EPS (both in USD)

= 3.58 ÷ 0.70

5.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archrock is good value based on earnings compared to the Europe Energy Services industry average.
  • Archrock is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Archrock's expected growth come at a high price?
Raw Data
DB:54E PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
7.8%per year
Europe Energy Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Energy Services Companies 0.51x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:54E PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.11x ÷ 7.8%

0.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archrock is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Archrock's assets?
Raw Data
DB:54E PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $7.15
NYSE:AROC Share Price * NYSE (2020-04-06) in USD $3.58
Europe Energy Services Industry PB Ratio Median Figure of 70 Publicly-Listed Energy Services Companies 0.4x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:54E PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AROC Share Price ÷ Book Value per Share (both in USD)

= 3.58 ÷ 7.15

0.5x

* Primary Listing of Archrock.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archrock is overvalued based on assets compared to the Europe Energy Services industry average.
X
Value checks
We assess Archrock's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Energy Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Energy Services industry average (and greater than 0)? (1 check)
  5. Archrock has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

54E Future Performance

 How is Archrock expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Archrock expected to grow at an attractive rate?
  • Archrock's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Archrock's earnings growth is positive but not above the Germany market average.
  • Archrock's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:54E Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:54E Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 7.8%
DB:54E Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2.4%
Europe Energy Services Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
Europe Energy Services Industry Revenue Growth Rate Market Cap Weighted Average -0.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:54E Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:54E Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 132
2021-12-31 1,013 308 94 2
2020-12-31 976 291 74 2
2020-04-06
DB:54E Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 965 290 96
2019-09-30 953 279 63
2019-06-30 940 269 53
2019-03-31 929 245 44
2018-12-31 904 226 20
2018-09-30 880 221 55
2018-06-30 846 206 35
2018-03-31 817 209 26
2017-12-31 795 202 18
2017-09-30 780 205 -67
2017-06-30 777 239 -67
2017-03-31 784 258 -65

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Archrock's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
  • Archrock's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:54E Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Archrock Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:54E Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.87 0.87 0.87 1.00
2021-12-31 0.62 0.80 0.44 2.00
2020-12-31 0.49 0.70 0.27 2.00
2020-04-06
DB:54E Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.70
2019-09-30 0.48
2019-06-30 0.41
2019-03-31 0.35
2018-12-31 0.19
2018-09-30 0.58
2018-06-30 0.43
2018-03-31 0.38
2017-12-31 0.26
2017-09-30 -0.97
2017-06-30 -0.97
2017-03-31 -0.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Archrock is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Archrock's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Archrock has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

54E Past Performance

  How has Archrock performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Archrock's growth in the last year to its industry (Energy Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Archrock has delivered over 20% year on year earnings growth in the past 5 years.
  • Archrock's 1-year earnings growth exceeds its 5-year average (375.4% vs 56.2%)
  • Archrock's earnings growth has exceeded the Europe Energy Services industry average in the past year (375.4% vs 0.7%).
Earnings and Revenue History
Archrock's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Archrock Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:54E Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 965.49 96.26 117.73
2019-09-30 952.66 63.39 108.24
2019-06-30 940.08 53.02 105.01
2019-03-31 928.56 43.59 103.04
2018-12-31 904.44 20.25 101.56
2018-09-30 880.22 54.93 110.12
2018-06-30 845.70 34.84 111.61
2018-03-31 816.81 26.19 110.12
2017-12-31 794.66 18.33 109.37
2017-09-30 779.50 -67.45 107.23
2017-06-30 777.50 -66.86 103.49
2017-03-31 783.66 -64.60 107.37
2016-12-31 807.07 -54.76 115.87
2016-09-30 854.60 -155.10 123.12
2016-06-30 907.61 -165.49 131.69
2016-03-31 958.53 -165.87 134.00
2015-12-31 998.11 -166.74 131.92
2015-09-30 -390.16 -96.70 -53.90
2015-06-30 84.81 -60.85 8.29
2015-03-31 569.02 -61.59 72.64
2014-12-31 959.15 -45.32 132.65
2014-09-30 2,845.13 30.07 371.81
2014-06-30 2,896.88 38.55 370.58
2014-03-31 2,993.52 54.53 365.88
2013-12-31 862.77 -35.63 118.85
2013-09-30 3,250.95 75.34 370.60
2013-06-30 3,194.07 53.62 362.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Archrock has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Archrock used its assets more efficiently than the Europe Energy Services industry average last year based on Return on Assets.
  • Archrock has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Archrock's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Energy Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Archrock has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

54E Health

 How is Archrock's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Archrock's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Archrock is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Archrock's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Archrock's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Archrock Company Filings, last reported 3 months ago.

DB:54E Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,085.96 1,844.32 3.70
2019-09-30 1,057.02 1,828.20 3.50
2019-06-30 832.89 1,630.39 2.35
2019-03-31 842.29 1,582.22 4.14
2018-12-31 841.57 1,529.50 8.80
2018-09-30 827.80 1,515.68 7.02
2018-06-30 830.73 1,458.86 6.35
2018-03-31 737.87 1,427.05 5.20
2017-12-31 735.62 1,417.19 10.72
2017-09-30 701.45 1,394.24 2.65
2017-06-30 679.85 1,443.97 2.60
2017-03-31 675.30 1,438.37 10.81
2016-12-31 684.93 1,445.33 3.13
2016-09-30 753.54 1,480.30 5.36
2016-06-30 756.09 1,574.94 27.83
2016-03-31 750.92 1,610.63 4.79
2015-12-31 787.26 1,582.91 1.56
2015-09-30 1,901.05 2,086.89 32.52
2015-06-30 1,931.52 2,097.19 23.33
2015-03-31 1,951.58 2,056.46 52.01
2014-12-31 1,865.81 2,030.90 0.38
2014-09-30 1,961.73 1,962.96 33.79
2014-06-30 1,948.07 1,856.86 53.90
2014-03-31 1,841.05 1,588.92 61.49
2013-12-31 1,813.43 1,505.53 35.67
2013-09-30 1,792.92 1,568.91 37.06
2013-06-30 1,752.18 1,646.12 36.94
  • Archrock's level of debt (169.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (108.8% vs 169.8% today).
  • Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Archrock's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Archrock has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

54E Dividends

 What is Archrock's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
16.2%
Current annual income from Archrock dividends. Estimated to be 19.36% next year.
If you bought €2,000 of Archrock shares you are expected to receive €324 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Archrock's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Archrock's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:54E Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Europe Energy Services Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 6.8%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:54E Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.86 1.00
2021-12-31 0.70 3.00
2020-12-31 0.63 3.00
2020-04-06
DB:54E Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-24 0.580 11.034
2019-10-23 0.580 6.230
2019-07-24 0.580 5.964
2019-04-24 0.528 5.361
2019-01-28 0.528 5.347
2018-10-25 0.528 5.644
2018-07-26 0.528 4.331
2018-04-27 0.480 4.044
2018-01-19 0.480 5.042
2017-10-23 0.480 4.683
2017-04-26 0.480 4.340
2017-02-23 0.430 3.403
2016-07-27 0.380 3.013
2016-05-03 0.380 4.650
2016-01-28 0.750 12.654
2015-10-20 0.600 7.004
2015-07-30 0.600 2.775
2015-05-05 0.600 1.916
2015-01-30 0.600 1.859
2014-10-30 0.600 1.864
2014-07-31 0.600 1.425
2014-04-29 0.600 1.391
2014-02-25 0.600 1.435

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Archrock has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Archrock has only been paying a dividend for 6 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Archrock's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.6x coverage).
X
Income/ dividend checks
We assess Archrock's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Archrock afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Archrock has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

54E Management

 What is the CEO of Archrock's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Childers
COMPENSATION $6,156,802
AGE 55
TENURE AS CEO 8.4 years
CEO Bio

Mr. D. Bradley Childers, also known as Brad, has been the Chief Executive Officer and President of Archrock, Inc. since December 12, 2011. Mr. Childers was the Chairman, Chief Executive Officer and President of Archrock GP LLC (formerly Exterran GP LLC), a General Partner of Archrock Partners, L.P. (formerly Exterran Partners, L.P.) since December 12, 2011 until April 2018. He served as Interim President and Chief Executive Officer of Archrock and Interim Chairman of the APLP board since November 2011. He is a Director of Archrock GP LLC since May 2008. Mr. Childers' business judgment, management experience and leadership skills are highly valuable in assessing Archrock's business strategies and accompanying risks. He served as Senior Vice President at Exterran, Inc. He served as an Interim Chief Executive Officer and President of North America Operations of Exterran Partners, L.P. He served as an Interim Chief Executive Officer, Interim President and Interim Chairman of Exterran GP LLC until November 2011. Mr. Childers served as the President of North America Operations of Exterran GP LLC. He served as the President of North America of Archrock, Inc. and Exterran Energy Solutions, L.P. since March 2008 until November 2011. He served as an Interim Chief Executive Officer at Exterran Holdings, Inc. since October 31, 2011. Mr. Childers served as Senior Vice President of North America Operations at Archrock, Inc. He served as Senior Vice President of Exterran GP LLC (formerly UCO GP LLC), a General Partner of Exterran Partners L.P. (Universal Compression Partners L.P.) since June 2006 until November 2011. He served as a Senior Vice President of Corporate Development at Archrock, Inc., from 2007 to 2008 and served as its Senior Vice President from August 2007 through November 2011. From August 2007 to November 2011, he served as Exterran's Senior Vice President of Corporate Development. Prior to the merger of Hanover and Universal, Mr. Childers served as a Senior Vice President of Universal and President of the International Division of Universal Compression, Inc., Universal's wholly owned subsidiary, positions he held since July 2006. He served as a Senior Vice President of Business Development, General Counsel and Secretary of Universal beginning in April 2005 and as Senior Vice President, General Counsel and Secretary of Universal beginning in September 2002. He serves as a Director of Yellowstone Academy. He served as a Senior Vice President of UCO COMPRESSION 2002 LLC., a subsidiary of Universal Compression Holdings Inc. He held various positions with Occidental Petroleum Corporation and its subsidiaries from 1994 to 2002, including as Vice President of Business Development at Occidental Oil and Gas Corporation from 1999 to August 2002 and as a Corporate Counsel in the Legal Department from 1994 to 1999. He has been a Director of Archrock, Inc. since April 2013. He served as a Director of UCO GP LLC-Gp of Exterran Partners, L.P. Mr. Childers served as an Associate Corporate Attorney at Sullivan & Cromwell, in their Los Angeles office from 1989 to 1994. Mr. Childers holds a B.A. from Claremont McKenna College and a J.D. from the University of Southern California.

CEO Compensation
  • Brad's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brad's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Archrock management team in years:

2.8
Average Tenure
51.5
Average Age
  • The tenure for the Archrock management team is about average.
Management Team

Brad Childers

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
8.4 yrs

Doug Aron

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
45
TENURE
1.7 yrs

Eric Thode

TITLE
Senior Vice President of Operations
COMPENSATION
$1M
AGE
53
TENURE
1.5 yrs

Stephanie Hildebrandt

TITLE
Senior VP
COMPENSATION
$2M
AGE
54
TENURE
2.7 yrs

Jason Ingersoll

TITLE
Senior Vice President of Marketing & Sales
COMPENSATION
$1M
AGE
48
TENURE
4.4 yrs

Donna Henderson

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
4.3 yrs

Paul Burkhart

TITLE
Vice President

Elspeth Inglis

TITLE
Senior VP & Chief Human Resources Officer
AGE
50
TENURE
0.5 yrs

Megan Repine

TITLE
Vice President of Investor Relations

Donald Wayne

TITLE
Consultant
COMPENSATION
$695K
AGE
52
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Archrock board of directors in years:

5
Average Tenure
63
Average Age
  • The tenure for the Archrock board of directors is about average.
Board of Directors

Gordon Hall

TITLE
Independent Chairman of the Board
COMPENSATION
$324K
AGE
60
TENURE
4.4 yrs

Brad Childers

TITLE
President
COMPENSATION
$6M
AGE
55
TENURE
7 yrs

Anne-Marie Ainsworth

TITLE
Independent Director
COMPENSATION
$239K
AGE
63
TENURE
5 yrs

Frances R. Hawes

TITLE
Independent Director
COMPENSATION
$244K
AGE
64
TENURE
5 yrs

James Lytal

TITLE
Independent Director
COMPENSATION
$244K
AGE
61
TENURE
5 yrs

Will Honeybourne

TITLE
Independent Director
COMPENSATION
$224K
AGE
68
TENURE
14 yrs

Wendell Brooks

TITLE
Independent Director
COMPENSATION
$224K
AGE
69
TENURE
4.4 yrs

Ed Segner

TITLE
Independent Director
COMPENSATION
$224K
AGE
65
TENURE
1.8 yrs

Jeff Hildebrand

TITLE
Director
AGE
59
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Archrock individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
19. Mar 20 Buy D. Childers Individual 18. Mar 20 18. Mar 20 42,915 €2.14 €91,887
18. Mar 20 Buy Gordon Hall Individual 18. Mar 20 18. Mar 20 23,000 €1.98 €45,425
18. Mar 20 Buy Donna Henderson Individual 18. Mar 20 18. Mar 20 5,000 €2.14 €10,706
18. Mar 20 Buy Douglas Aron Individual 18. Mar 20 18. Mar 20 25,000 €2.14 €53,501
13. Mar 20 Buy Donna Henderson Individual 13. Mar 20 13. Mar 20 5,000 €3.61 €18,058
11. Mar 20 Buy Gordon Hall Individual 11. Mar 20 11. Mar 20 22,342 €3.38 €75,530
10. Mar 20 Buy D. Childers Individual 10. Mar 20 10. Mar 20 24,000 €3.68 €88,222
09. Mar 20 Buy Douglas Aron Individual 09. Mar 20 09. Mar 20 11,000 €3.94 €43,303
06. Mar 20 Buy Jason Ingersoll Individual 06. Mar 20 06. Mar 20 8,400 €5.25 €44,063
06. Mar 20 Buy D. Childers Individual 06. Mar 20 06. Mar 20 16,665 €5.30 €88,301
04. Mar 20 Buy Douglas Aron Individual 03. Mar 20 03. Mar 20 7,000 €6.15 €43,060
25. Feb 20 Buy Eric Thode Individual 25. Feb 20 25. Feb 20 650 €7.06 €4,588
25. Feb 20 Buy D. Childers Individual 25. Feb 20 25. Feb 20 13,160 €6.99 €91,935
24. Feb 20 Buy Douglas Aron Individual 24. Feb 20 24. Feb 20 13,000 €7.01 €91,144
12. Nov 19 Buy D. Childers Individual 11. Nov 19 11. Nov 19 5,555 €8.15 €45,295
08. Nov 19 Buy D. Childers Individual 08. Nov 19 08. Nov 19 5,555 €8.14 €45,207
06. Sep 19 Sell Donna Henderson Individual 05. Sep 19 05. Sep 19 -15,308 €9.18 €-140,492
14. Aug 19 Buy D. Childers Individual 14. Aug 19 14. Aug 19 12,050 €7.35 €88,564
14. Aug 19 Buy Douglas Aron Individual 14. Aug 19 14. Aug 19 10,550 €7.36 €77,634
X
Management checks
We assess Archrock's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Archrock has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

54E News

Simply Wall St News

54E Company Info

Description

Archrock, Inc. operates as a midstream energy infrastructure company in the United States. It operates in two segments, Contract Operations and Aftermarket Services. The company offers natural gas compression services to customers in the oil and natural gas industry. It also provides various aftermarket services, such as parts and components; and operation, maintenance, overhaul, and reconfiguration services to customers who own compression equipment. The company was formerly known as Exterran Holdings, Inc. and changed its name to Archrock, Inc. in November 2015. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas.

Details
Name: Archrock, Inc.
54E
Exchange: DB
Founded: 1990
$512,935,540
152,869,674
Website: http://www.archrock.com
Address: Archrock, Inc.
9807 Katy Freeway,
Suite 100,
Houston,
Texas, 77024,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AROC Common Shares New York Stock Exchange US USD 01. Jul 1997
DB 54E Common Shares Deutsche Boerse AG DE EUR 01. Jul 1997
BRSE 54E Common Shares Berne Stock Exchange CH CHF 01. Jul 1997
Number of employees
Current staff
Staff numbers
1,700
Archrock employees.
Industry
Oil and Gas Equipment and Services
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 22:41
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/24
Last earnings filing: 2020/02/21
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.