Archrock, Inc. AROC

Competitive advantage analysis · energy

Corporate Default
Overall moat score
72/100
Moderate

About Archrock, Inc.

Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. The company operates in two segments, Contract Operations and Aftermarket Services. It engages in the designing, sourcing, owning, installing, operating, servicing, repairing, and maintaining of its owned fleet of natural gas compression equipment to provide natural gas compression services. The company also sells over-the-counter … Full AROC analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 48.6% (top 6%) and operating margin at 38.6% (top 2%) indicate strong pricing power.
  • ROIC Sustainably Above Peers ROIC at 76.6th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.35), raising refinancing risk.
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.30), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
70

Where AROC ranks in Oil & Gas Equipment & Services

Archrock, Inc. ranks #3 of 50 scored companies in Oil & Gas Equipment & Services by moat score — the top 6%. The widest moat in the group is Cactus, Inc. Class A Common Sto (WHD) at 78/100.

Moat scores for companies ranked near AROC in Oil & Gas Equipment & Services
# Company Moat score Rating
1 Cactus, Inc. Class A Common Sto WHD 78/100 Strong
2 USA Compression Partners, LP USAC 77/100 Strong
3 Archrock, Inc. AROC 72/100 Moderate
4 LandBridge Company LLC LB 71/100 Moderate
5 TechnipFMC plc FTI 69/100 Moderate
6 Schlumberger N.V. SLB 69/100 Moderate
7 Tidewater Inc. TDW 69/100 Moderate
8 Tenaris S.A. TS 68/100 Moderate
9 Flowco Holdings Inc. FLOC 67/100 Moderate

See every Commodities & Mining company ranked by moat score →

How AROC scores on the Corporate Default defenses

Pricing Power

Score 70 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 78 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 80 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 42 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 90 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding AROC's moat

What is Archrock, Inc.'s moat score?

Archrock, Inc. (AROC) scores 72 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #3 of 50 scored companies in Oil & Gas Equipment & Services, the top 6%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 49 companies in Oil & Gas Equipment & Services. Its strongest defense is Scale & Market Position (90/100) and its weakest is Resilience (42/100).

How does Archrock, Inc. compare with other Oil & Gas Equipment & Services companies?

Archrock, Inc. ranks #3 of 50 scored companies in Oil & Gas Equipment & Services by moat score. The widest moat in Oil & Gas Equipment & Services is Cactus, Inc. Class A Common Sto (WHD) at 78/100. The companies ranked closest are USA Compression Partners, LP (USAC) at 77 just above it and LandBridge Company LLC (LB) at 71 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 49 companies in Oil & Gas Equipment & Services. The defenses are then weighted to produce the overall score out of 100.

Why is Archrock, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Archrock, Inc.?

The Corporate Default template measures 6 defenses, and AROC scores: Pricing Power (70), Cost Advantage (78), Customer Stickiness (80), Capital Efficiency (76), Resilience (42), Scale & Market Position (90). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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