USA COMPRESSION PARTNERS LP (USAC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USAC - US90290N1090
25.31 USD
+0.11 (+0.44%)
USAC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Energy Equipment & Services industry. While USAC is still in line with the averages on profitability rating, there are concerns on its financial health. USAC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year USAC was profitable.
- USAC had a positive operating cash flow in the past year.
- In multiple years USAC reported negative net income over the last 5 years.
- Each year in the past 5 years USAC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.62%, USAC is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 10.17%, USAC is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for USAC is significantly below the industry average of 12.90%.
- The 3 year average ROIC (7.42%) for USAC is below the current ROIC(10.17%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 9.71%, USAC belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
- USAC has a better Operating Margin (32.13%) than 96.72% of its industry peers.
- USAC's Operating Margin has improved in the last couple of years.
- The Gross Margin of USAC (67.45%) is better than 98.36% of its industry peers.
- In the last couple of years the Gross Margin of USAC has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so USAC is still creating some value.
- USAC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, USAC has more shares outstanding
- The debt/assets ratio for USAC is higher compared to a year ago.
2.2 Solvency
- USAC has a debt to FCF ratio of 8.71. This is a slightly negative value and a sign of low solvency as USAC would need 8.71 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.71, USAC is in line with its industry, 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
- USAC has a Current Ratio of 1.36. This is a normal value and indicates that USAC is financially healthy and should not expect problems in meeting its short term obligations.
- USAC has a Current ratio of 1.36. This is in the lower half of the industry: USAC underperforms 75.41% of its industry peers.
- USAC has a Quick Ratio of 1.36. This is a bad value and indicates that USAC is not financially healthy enough and could expect problems in meeting its short term obligations.
- USAC has a worse Quick ratio (0.62) than 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
- USAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.15%, which is quite impressive.
- Looking at the last year, USAC shows a small growth in Revenue. The Revenue has grown by 6.66% in the last year.
- Measured over the past years, USAC shows a small growth in Revenue. The Revenue has been growing by 6.36% on average per year.
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
- USAC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.35% yearly.
- The Revenue is expected to grow by 15.79% on average over the next years. This is quite good.
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
- A Price/Earnings ratio of 31.64 indicates a quite expensive valuation of USAC.
- USAC's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, USAC is valued at the same level.
- A Price/Forward Earnings ratio of 18.59 indicates a rather expensive valuation of USAC.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. USAC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.64 | ||
| Fwd PE | 18.59 |
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.
- USAC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. USAC is cheaper than 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.69 | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
- USAC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- USAC has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as USAC's earnings are expected to grow with 27.35% in the coming years.
PEG (NY)1.77
PEG (5Y)N/A
EPS Next 2Y32.97%
EPS Next 3Y27.35%
5. Dividend
5.1 Amount
- USAC has a Yearly Dividend Yield of 8.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.14, USAC pays a better dividend. On top of this USAC pays more dividend than 100.00% of the companies listed in the same industry.
- USAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.34% |
5.2 History
- The dividend of USAC decreases each year by -0.70%.
- USAC has paid a dividend for at least 10 years, which is a reliable track record.
- USAC has not decreased their dividend for at least 10 years, which is a reliable track record.
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 5 / 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 31.64 and the Price/Book (PB) ratio is -40.43.
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.