USA COMPRESSION PARTNERS LP (USAC) Stock Fundamental Analysis
NYSE:USAC - New York Stock Exchange, Inc. - US90290N1090 - Currency: USD
Taking everything into account, USAC scores 4 out of 10 in our fundamental rating. USAC was compared to 59 industry peers in the Energy Equipment & Services industry. While USAC belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, USAC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year USAC was profitable.
In the past year USAC had a positive cash flow from operations.
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
USAC has a Return On Assets (2.99%) which is comparable to the rest of the industry.
USAC has a better Return On Equity (295.50%) than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 9.29%, USAC is doing good in the industry, outperforming 65.52% 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 in line with the industry average of 8.19%.
The 3 year average ROIC (7.42%) for USAC is below the current ROIC(9.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 295.5% | ||
| ROIC | 9.29% |
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
USAC has a better Profit Margin (8.63%) than 63.79% of its industry peers.
USAC has a Operating Margin of 31.60%. This is amongst the best in the industry. USAC outperforms 96.55% of its industry peers.
USAC's Operating Margin has improved in the last couple of years.
USAC's Gross Margin of 67.10% is amongst the best of the industry. USAC outperforms 98.28% 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 | 31.6% | ||
| PM (TTM) | 8.63% | ||
| GM | 67.1% |
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.
Compared to 1 year ago, USAC has more shares outstanding
The number of shares outstanding for USAC has been increased compared to 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 18.34, which is on the high side as it means it would take USAC, 18.34 years of fcf income to pay off all of its debts.
USAC has a Debt to FCF ratio of 18.34. This is comparable to the rest of the industry: USAC outperforms 43.10% of its industry peers.
USAC has a Debt/Equity ratio of 90.16. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of USAC (90.16) is worse than 94.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 90.16 | ||
| Debt/FCF | 18.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.08
WACC8.63%
2.3 Liquidity
USAC has a Current Ratio of 1.23. This is a normal value and indicates that USAC is financially healthy and should not expect problems in meeting its short term obligations.
USAC's Current ratio of 1.23 is on the low side compared to the rest of the industry. USAC is outperformed by 87.93% of its industry peers.
USAC has a Quick Ratio of 1.23. 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 Quick ratio of 0.53. This is amonst the worse of the industry: USAC underperforms 98.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
USAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1000.00%, which is quite impressive.
The Revenue has grown by 12.33% in the past year. This is quite good.
USAC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.36% yearly.
EPS 1Y (TTM)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%800%
Revenue 1Y (TTM)12.33%
Revenue growth 3Y14.53%
Revenue growth 5Y6.36%
Sales Q2Q%9.26%
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 25.55% on average per year.
The Revenue is expected to grow by 9.28% on average over the next years. This is quite good.
EPS Next Y35.12%
EPS Next 2Y25.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.7%
Revenue Next 2Y9.28%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 36.30, which means the current valuation is very expensive for USAC.
Based on the Price/Earnings ratio, USAC is valued a bit more expensive than the industry average as 65.52% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 29.63, USAC is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 26.86, the valuation of USAC can be described as expensive.
74.14% of the companies in the same industry are cheaper than USAC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, USAC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 26.86 |
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 75.86% of the companies in the same industry.
USAC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 10.37 |
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.
USAC's earnings are expected to grow with 25.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y25.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
USAC has a Yearly Dividend Yield of 7.37%, which is a nice return.
USAC's Dividend Yield is rather good when compared to the industry average which is at 3.47. USAC pays more dividend than 96.55% of the companies in the same industry.
USAC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
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
323.35% of the earnings are spent on dividend by USAC. This is not a sustainable payout ratio.
DP323.35%
EPS Next 2Y25.55%
EPS Next 3YN/A
27.95
-0.62 (-2.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.76%
Inst Owner Change0.88%
Ins Owners0.23%
Ins Owner Change0.27%
Market Cap3.28B
Analysts50.91
Price Target27.95 (0%)
Short Float %3.73%
Short Ratio5.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.37% |
Yearly Dividend2.43
Dividend Growth(5Y)-0.7%
DP323.35%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.21%
Min EPS beat(2)-36.51%
Max EPS beat(2)-27.91%
EPS beat(4)2
Avg EPS beat(4)7.19%
Min EPS beat(4)-36.51%
Max EPS beat(4)70.18%
EPS beat(8)3
Avg EPS beat(8)-43.32%
EPS beat(12)4
Avg EPS beat(12)-69.85%
EPS beat(16)6
Avg EPS beat(16)-55.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.58%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)3
Avg Revenue beat(12)-0.54%
Revenue beat(16)3
Avg Revenue beat(16)-1.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)14.13%
EPS NY rev (1m)1.53%
EPS NY rev (3m)2.85%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.3 | ||
| Fwd PE | 26.86 | ||
| P/S | 3.46 | ||
| P/FCF | 24.07 | ||
| P/OCF | 9.62 | ||
| P/B | 118.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.37 |
EPS(TTM)0.77
EY2.75%
EPS(NY)1.04
Fwd EY3.72%
FCF(TTM)1.16
FCFY4.15%
OCF(TTM)2.9
OCFY10.39%
SpS8.09
BVpS0.24
TBVpS-1.6
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 295.5% | ||
| ROCE | 11.75% | ||
| ROIC | 9.29% | ||
| ROICexc | 9.29% | ||
| ROICexgc | 10.14% | ||
| OM | 31.6% | ||
| PM (TTM) | 8.63% | ||
| GM | 67.1% | ||
| FCFM | 14.36% |
ROA(3y)1.02%
ROA(5y)-4.03%
ROE(3y)100.53%
ROE(5y)43.2%
ROIC(3y)7.42%
ROIC(5y)6.26%
ROICexc(3y)7.42%
ROICexc(5y)6.26%
ROICexgc(3y)8.2%
ROICexgc(5y)6.97%
ROCE(3y)9.4%
ROCE(5y)7.92%
ROICexcg growth 3Y26.79%
ROICexcg growth 5Y13.4%
ROICexc growth 3Y28.36%
ROICexc growth 5Y18.89%
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%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 90.16 | ||
| Debt/FCF | 18.34 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 77.37% | ||
| Cap/Sales | 21.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.41% | ||
| Profit Quality | 166.39% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score7
WACC8.63%
ROIC/WACC1.08
Cap/Depr(3y)77%
Cap/Depr(5y)59.11%
Cap/Sales(3y)22.93%
Cap/Sales(5y)18.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1000%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%800%
EPS Next Y35.12%
EPS Next 2Y25.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.33%
Revenue growth 3Y14.53%
Revenue growth 5Y6.36%
Sales Q2Q%9.26%
Revenue Next Year14.7%
Revenue Next 2Y9.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.73%
EBIT growth 3Y27.94%
EBIT growth 5Y11.38%
EBIT Next Year98.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y309.08%
FCF growth 3Y-14.74%
FCF growth 5Y1.06%
OCF growth 1Y25.54%
OCF growth 3Y8.75%
OCF growth 5Y2.57%