USA Compression Partners, LP
USA Compression Partners, LP Fundamental Analysis
USA Compression Partners, LP (USAC) shows moderate financial fundamentals with a PE ratio of 29.79, profit margin of 11.15%, and ROE of -1.79%. The company generates $1.0B in annual revenue with strong year-over-year growth of 12.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 98.5/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze USAC's fundamental strength across five key dimensions:
Efficiency Score
WeakUSAC struggles to generate sufficient returns from assets.
Valuation Score
WeakUSAC trades at a premium to fair value.
Growth Score
ModerateUSAC shows steady but slowing expansion.
Financial Health Score
ExcellentUSAC maintains a strong and stable balance sheet.
Profitability Score
WeakUSAC struggles to sustain strong margins.
Key Financial Metrics
Is USAC Expensive or Cheap?
P/E Ratio
USAC trades at 29.79 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, USAC's PEG of 6.03 indicates potential overvaluation.
Price to Book
The market values USA Compression Partners, LP at -29.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.23 times EBITDA. This is generally considered low.
How Well Does USAC Make Money?
Net Profit Margin
For every $100 in sales, USA Compression Partners, LP keeps $11.15 as profit after all expenses.
Operating Margin
Core operations generate 30.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.79 in profit for every $100 of shareholder equity.
ROA
USA Compression Partners, LP generates $4.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
USA Compression Partners, LP generates strong operating cash flow of $390.90M, reflecting robust business health.
Free Cash Flow
USA Compression Partners, LP generates strong free cash flow of $274.62M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.24 in free cash annually.
FCF Yield
USAC converts 8.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
-29.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-22.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.79
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How USAC Stacks Against Its Sector Peers
| Metric | USAC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.79 | 20.10 | Worse (Expensive) |
| ROE | -178.66% | 1093.00% | Weak |
| Net Margin | 11.15% | -30344.00% (disorted) | Strong |
| Debt/Equity | -22.67 | -0.69 (disorted) | Distorted |
| Current Ratio | 1.27 | 4.79 | Neutral |
| ROA | 4.25% | -1.00% (disorted) | Weak |
USAC outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews USA Compression Partners, LP's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
15.94%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
116.76%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-3.26%
Industry Style: Cyclical, Value, Commodity
Declining