USA Compression Partners, LP Fundamental Analysis (NYSE: USAC)
USA Compression Partners, LP Fundamental Analysis (NYSE: USAC)
USA Compression Partners, LP (NYSE: USAC) shows moderate financial fundamentals with a PE ratio of 22.47, profit margin of 12.40%, and ROE of 84.88%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
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
ExcellentUSAC trades at attractive valuation levels.
Growth Score
ExcellentUSAC delivers strong and consistent growth momentum.
Financial Health Score
ModerateUSAC shows balanced financial health with some risks.
Profitability Score
ModerateUSAC maintains healthy but balanced margins.
Key Financial Metrics
Is USAC Expensive or Cheap?
P/E Ratio
USAC trades at 22.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, USAC's PEG of 0.57 indicates potential undervaluation.
Price to Book
The market values USA Compression Partners, LP at 14.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.95 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 $12.40 as profit after all expenses.
Operating Margin
Core operations generate 28.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $84.88 in profit for every $100 of shareholder equity.
ROA
USA Compression Partners, LP generates $4.28 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 $488.97M, reflecting robust business health.
Free Cash Flow
USA Compression Partners, LP generates strong free cash flow of $437.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.02 in free cash annually.
FCF Yield
USAC converts 11.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
11.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.85
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How USAC Stacks Against Its Sector Peers
| Metric | USAC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.47 | 20.60 | Neutral |
| ROE | 84.88% | 1363.00% | Weak |
| Net Margin | 12.40% | 1351.00% | Weak |
| Debt/Equity | 11.70 | -1.64 (disorted) | Distorted |
| Current Ratio | 1.46 | 2.16 | Neutral |
| ROA | 4.28% | 2679.00% | Weak |
USAC outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
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
19.85%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
115.01%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
7.81%
Industry Style: Cyclical, Value, Commodity
Growing