USA COMPRESSION PARTNERS LP (USAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USAC - US90290N1090
24.92 USD
-0.23 (-0.91%)
24.92 USD
0 (0%)
Overall USAC gets a fundamental rating of 4 out of 10. We evaluated USAC against 61 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of USAC while its profitability can be described as average. USAC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- USAC had positive earnings in the past year.
- In the past year USAC had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: USAC reported negative net income in multiple years.
- In the past 5 years USAC always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of USAC (3.62%) is better than 60.66% of its industry peers.
- With a decent Return On Invested Capital value of 10.17%, USAC is doing good in the industry, outperforming 78.69% of the companies in the same industry.
- USAC had an Average Return On Invested Capital over the past 3 years of 7.42%. This is significantly below the industry average of 12.90%.
- The last Return On Invested Capital (10.17%) for USAC is above the 3 year average (7.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.62% | ||
| ROE | N/A | ||
| ROIC | 10.17% |
ROA(3y)1.02%
ROA(5y)-4.03%
ROE(3y)100.53%
ROE(5y)43.2%
ROIC(3y)7.42%
ROIC(5y)6.26%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.71%, USAC belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 32.13%, USAC belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
- In the last couple of years the Operating Margin of USAC has grown nicely.
- USAC has a Gross Margin of 67.45%. This is amongst the best in the industry. USAC outperforms 98.36% of its industry peers.
- USAC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.13% | ||
| PM (TTM) | 9.71% | ||
| GM | 67.45% |
OM growth 3Y11.7%
OM growth 5Y4.72%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.12%
GM growth 5Y-0.08%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), USAC is creating some value.
- Compared to 1 year ago, USAC has more shares outstanding
- USAC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, USAC has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of USAC is 8.71, which is on the high side as it means it would take USAC, 8.71 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 8.71, USAC perfoms like the industry average, outperforming 45.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC1.26
WACC8.1%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that USAC should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.36, USAC is doing worse than 75.41% of the companies in the same industry.
- A Quick Ratio of 0.62 indicates that USAC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.62, USAC is not doing good in the industry: 93.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 31.15% over the past year.
- Looking at the last year, USAC shows a small growth in Revenue. The Revenue has grown by 6.66% in the last year.
- USAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
EPS 1Y (TTM)31.15%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)6.66%
Revenue growth 3Y14.53%
Revenue growth 5Y6.36%
Sales Q2Q%4.29%
3.2 Future
- Based on estimates for the next years, USAC will show a very strong growth in Earnings Per Share. The EPS will grow by 27.35% on average per year.
- USAC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.79% yearly.
EPS Next Y17.9%
EPS Next 2Y32.97%
EPS Next 3Y27.35%
EPS Next 5YN/A
Revenue Next Year14.47%
Revenue Next 2Y18.88%
Revenue Next 3Y15.79%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 31.15, the valuation of USAC can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of USAC is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of USAC to the average of the S&P500 Index (27.25), we can say USAC is valued inline with the index average.
- USAC is valuated rather expensively with a Price/Forward Earnings ratio of 18.31.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of USAC indicates a somewhat cheap valuation: USAC is cheaper than 60.66% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, USAC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.15 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
- 63.93% of the companies in the same industry are cheaper than USAC, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, USAC is valued cheaper than 85.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 9.31 |
4.3 Compensation for Growth
- USAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of USAC may justify a higher PE ratio.
- USAC's earnings are expected to grow with 27.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y32.97%
EPS Next 3Y27.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.34%, USAC is a good candidate for dividend investing.
- USAC's Dividend Yield is rather good when compared to the industry average which is at 1.14. USAC pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, USAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.34% |
5.2 History
- The dividend of USAC decreases each year by -0.70%.
- USAC has been paying a dividend for at least 10 years, so it has a reliable track record.
- USAC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.7%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
- USAC pays out 276.73% of its income as dividend. This is not a sustainable payout ratio.
DP276.73%
EPS Next 2Y32.97%
EPS Next 3Y27.35%
USA COMPRESSION PARTNERS LP / USAC FAQ
Can you provide the ChartMill fundamental rating for USA COMPRESSION PARTNERS LP?
ChartMill assigns a fundamental rating of 4 / 10 to USAC.
Can you provide the valuation status for USA COMPRESSION PARTNERS LP?
ChartMill assigns a valuation rating of 4 / 10 to USA COMPRESSION PARTNERS LP (USAC). This can be considered as Fairly Valued.
How profitable is USA COMPRESSION PARTNERS LP (USAC) stock?
USA COMPRESSION PARTNERS LP (USAC) has a profitability rating of 6 / 10.
What are the PE and PB ratios of USA COMPRESSION PARTNERS LP (USAC) stock?
The Price/Earnings (PE) ratio for USA COMPRESSION PARTNERS LP (USAC) is 31.15 and the Price/Book (PB) ratio is -39.8.
What is the financial health of USA COMPRESSION PARTNERS LP (USAC) stock?
The financial health rating of USA COMPRESSION PARTNERS LP (USAC) is 1 / 10.