We assign a fundamental rating of 4 out of 10 to USAC. USAC was compared to 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 decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year USAC was profitable.
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.
Each year in the past 5 years USAC had a positive operating cash flow.

1.2 Ratios

USAC's Return On Assets of 3.62% is fine compared to the rest of the industry. USAC outperforms 60.66% of its industry peers.
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 12.88%.
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

The Profit Margin of USAC (9.71%) is better than 85.25% of its industry peers.
USAC has a Operating Margin of 32.13%. This is amongst the best in the industry. USAC outperforms 96.72% of its industry peers.
In the last couple of years the Operating Margin of USAC has grown nicely.
With an excellent Gross Margin value of 67.45%, USAC belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
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.
USAC has a worse debt/assets ratio than last year.

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.
USAC has a Debt to FCF ratio of 8.71. This is comparable to the rest of the industry: USAC outperforms 45.90% of its industry peers.

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

ROIC/WACC1.25

WACC8.15%

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 72.13% of the companies in the same industry.
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

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WACC

Debt/Equity

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Altman-Z score

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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

The Earnings Per Share is expected to grow by 27.35% on average over the next years. This is a very strong growth
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.

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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 is on the same level as the industry average.
USAC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
USAC is valuated rather expensively with a Price/Forward Earnings ratio of 19.00.
Based on the Price/Forward Earnings ratio, USAC is valued a bit cheaper than 60.66% of the companies in the same industry.
USAC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		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.
Based on the Price/Free Cash Flow ratio, USAC is valued cheaper than 83.61% of the companies in the same industry.

		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 an expensive 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)1.81

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.
USAC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	8.14%

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 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%

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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.