Designs, sources, and owns natural gas compression equipment. Installs and operates compression equipment for customers. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 18% a year over the last 4 years. Every year shown ended in profit.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly below the class average.
Sales are growing strongly for its sector.
Clearly below the class average.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
The stock trades 22% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 22% — that slice of every sale is the company’s cushion in hard quarters.
Over the last 4 years, sales grew about 18% a year on average.
It pays out $0.88 per share each year — regular cash for whoever holds the stock.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 29/100. For a turnaround signal, the stock first needs to close the gap with the market.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 38/100.
Today’s price already includes part of tomorrow’s optimism. Report-card grade: 43/100.
On our five-subject report card, AROC sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: AROC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
Analysts’ average target sits above today’s price, yet the valuation grade (43/100) says the stock isn’t cheap.