Archrock - AI Stock Analysis

Analysis generated October 6, 2025

Archrock, Inc. is a prominent player in the natural gas contract compression services and aftermarket services industry. The company offers a variety of services, including gas compression and stand-alone compression equipment. It has established itself as a leading service provider in the United States, supporting the production, processing, and transportation of natural gas. Archrock is publicly traded and holds a solid reputation, underpinned by strong operational performance and a significant client base.

Fundamental Analysis

Revenue for the last quarter was $383 million. This represented an increase of 10.37% compared to the prior quarter, indicating consistent growth in their business operations. Compared to the same quarter last year, the revenue growth is even more impressive at 41.63%. These figures reflect Archrock's ability to expand its revenue base year over year substantially.

However, net income for the last quarter was $63 million, showing a decrease of 10.49% compared to the previous quarter. While this quarter-over-quarter decline raises concerns, it's important to note that the net income has risen by 84.23% compared to the same quarter last year. This year-over-year growth is a strong positive indicator of profitability improvement.

EBITDA for the last quarter was $191 million, with a slight increase of 1.14% from the previous quarter and a significant year-over-year increase of 58.82%. This steady EBITDA growth underscores robust core operational gains.

The current Price-to-Earnings (P/E) ratio is 18.88. This ratio is within a reasonable range for the industry, suggestive of balanced market sentiment towards the stock.

Technical Analysis

Today’s stock price is $24.08, down by 4.63% compared to a month ago, presenting short-term concerns. However, the stock has appreciated by 15.11% over the past year, indicating a positive long-term trend. Despite the overall positive long-term trend, the stock’s current trend is bearish.

The Simple Moving Average (SMA10) is 25.62, lower than the previous SMA10 of 25.86, suggesting a downward trend. Additionally, the Relative Strength Index (RSI) is at 26.5, which indicates an oversold condition and could be a bullish signal for potential investors looking for entry points.

Alternative Data Analysis

Job postings and employee sentiment offer additional insights. Archrock currently has 87 open positions, down by 16% over the last few months, possibly indicating cost-cutting measures. Alarmingly, such a reduction is not typically associated with robust growth. Nevertheless, 83% of employees have a positive business outlook, pointing towards a confident workforce.

Customer engagement metrics show a concern. Website visitors are estimated at 5,000, down by 44% in recent months, suggesting potential customer base erosion. On social media, Archrock maintains 150 Twitter followers with no significant changes recently, indicating relatively stable but low engagement.

Lastly, AltIndex’s AI score for Archrock is 67, which is considered a buy signal based on a comprehensive analysis combining fundamental, technical, and alternative data.

Conclusion and Recommendation

Archrock presents a mix of encouraging and cautionary signals. Fundamentally, the company showcases strong year-over-year growth in revenue, net income, and EBITDA. The consistent long-term upward trend in stock price and employee sentiment are additional positives. However, recent declines in net income, the shrinking number of job postings, and a significant drop in web traffic are causes for vigilance.

Balancing these factors, while Archrock carries some short-term concerns, its significant long-term growth and competitive position offer a compelling investment opportunity. Based on the overall analysis, a cautious but optimistic approach is recommended for potential investors.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.