The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Archrock's share price is $20.04.
Archrock's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $6.42. Hence, Archrock's PS Ratio for today is 3.12.
Warning Sign:
Archrock Inc stock PS Ratio (=3.09) is close to 5-year high of 3.28
The historical rank and industry rank for Archrock's PS Ratio or its related term are showing as below:
AROC'
s PS Ratio Range Over the Past 10 Years
Min: 0.27 Med: 1.34 Max: 27.88
Current: 3.1
During the past 13 years, Archrock's highest PS Ratio was 27.88. The lowest was 0.27. And the median was 1.34.
AROC's PS Ratio is ranked worse than 79.62% of 947
companies
in the Oil & Gas industry
Industry Median: 1.17
vs AROC: 3.10
Archrock Inc revenue per share has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of Archrock was 16.40% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 3.40% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -5.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -10.80% per year.
During the past 13 years, Archrock's highest 3-Year average Revenue per Share Growth Rate was 267.00% per year. The lowest was -30.80% per year. And the median was -4.90% per year.
Back to Basics: PS Ratio
Archrock PS Ratio Historical Data
The historical data trend for Archrock's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Equipment & Services subindustry, Archrock's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Archrock's PS Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Archrock's PS Ratio distribution charts can be found below:
* The bar in red indicates where Archrock's PS Ratio falls into.
Archrock PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Archrock's Share Price of today is $20.04. Archrock's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.42.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Archrock PS Ratio Related Terms
Thank you for viewing the detailed overview of Archrock's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Archrock Inc is an energy infrastructure company with focus on midstream natural gas compression and a commitment to helping customers produce, compress and transport natural gas. It has two business segments, Contract Operations, and Aftermarket Services. Under the umbrella of contract operations services, the company provides operations to meet customers' natural gas compression needs. Services include designing, owning, installing, operating, and maintaining equipment. Aftermarket Services business provides a full range of services to support the compression needs of customers that own compression equipment, including operations, maintenance, overhaul and reconfiguration services and sales of parts and components. It generates maximum revenue from the Contract Operations segment.
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