Overall USAC gets a fundamental rating of 4 out of 10. We evaluated USAC 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 is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

USAC had positive earnings in the past year.
USAC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: USAC reported negative net income in multiple years.
USAC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 3.62%, USAC is doing good in the industry, outperforming 60.66% of the companies in the same industry.
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 12.88%.
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 85.25% of the companies in the same industry.
USAC has a better Operating Margin (32.13%) than 96.72% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

USAC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
USAC has more shares outstanding than it did 1 year ago.
USAC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for USAC is higher compared to a year ago.

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.
USAC has a Debt to FCF ratio (8.71) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	8.71
Altman-Z	N/A

ROIC/WACC1.25

WACC8.15%

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 72.13% of its industry peers.
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

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WACC

Debt/Equity

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Altman-Z score

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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.
The Revenue has been growing slightly by 6.36% on average over the past years.

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.
Based on estimates for the next years, USAC will show a quite strong growth in Revenue. The Revenue will grow by 15.79% on average per year.

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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.32, which means the current valuation is very expensive for USAC.
USAC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.32, USAC is valued at the same level.
A Price/Forward Earnings ratio of 19.00 indicates a rather expensive valuation of USAC.
60.66% of the companies in the same industry are more expensive than USAC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of USAC to the average of the S&P500 Index (25.57), we can say USAC is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	32.32
Fwd PE	19

4.2 Price Multiples

USAC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. USAC is more expensive than 67.21% of the companies in the same industry.
83.61% of the companies in the same industry are more expensive than USAC, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	10.92
EV/EBITDA	9.5

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates USAC does not grow enough to justify the current Price/Earnings ratio.
USAC has a very decent profitability rating, which 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)1.81

PEG (5Y)N/A

EPS Next 2Y32.97%

EPS Next 3Y27.35%

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5. Dividend

5.1 Amount

USAC has a Yearly Dividend Yield of 8.14%, which is a nice return.
USAC's Dividend Yield is rather good when compared to the industry average which is at 1.12. USAC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.83, USAC pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	8.14%

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 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%

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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 32.32 and the Price/Book (PB) ratio is -41.31.

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.