Archrock, Inc. (AROC) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Energy / Oil & Gas · as of Aug 11, 2026
Archrock, Inc. (AROC)
A forensic read on Archrock, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Grey Zone
Financial health
1.3
Distress distance
Clean
Earnings quality
5
Forensic signals
18.1
P / E (ttm)
21.6%
ROE
$5.8B
Market cap
2.76%
Dividend yield
28.7%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Archrock, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 1.3, placing it in the Grey zone. 5 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+4.4%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +14% over the last 3 years to FY2025 (+4.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~4.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~12%.
1.3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 1.3% of revenue and 16% of free cash flow in FY2025 — about $0.11 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 4.5% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
7.8%
FY2025
Return on invested capital.Return on invested capital is 7.8% in the latest fiscal year and rising from 5% — around its ~8% cost of capital, so growth is roughly value-neutral.
177% of FCF
FY2025
Shareholder returns.Returned $212M to shareholders (buybacks + dividends) in FY2025 — 177% of free cash flow, but 34% of operating cash flow. Returns run ahead of free cash flow because the business is also funding heavy growth capex (usually debt-financed); the payout itself is covered by operating cash — sustainable as long as that spending is genuine expansion, not upkeep. Counting the $19M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 193%.
$100M
Key fundamentals
Latest Revenue$1.49B
Revenue Growth YoY+28.7%
Revenue CAGR (3yr)+20.8%
Net Margin21.6%
Free Cash Flow$119.6M
Return on Equity21.6%
Debt / Equity1.62x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Archrock, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
FY2020–FY2020
Goodwill impairments.Took $100M of goodwill writedowns across 1 year (FY2020 ($100M)). Writedowns mean past acquisitions underperformed what was paid for them.