USA COMPRESSION PARTNERS LP (USAC) Stock Fundamental Analysis
NYSE:USAC - New York Stock Exchange, Inc. - US90290N1090 - Currency: USD
USAC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 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 quite expensive at the moment. It does show a decent growth rate.
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.
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
USAC has a Return On Assets (2.91%) which is comparable to the rest of the industry.
USAC has a better Return On Invested Capital (9.51%) than 70.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USAC is in line with the industry average of 8.42%.
The last Return On Invested Capital (9.51%) for USAC is above the 3 year average (7.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | N/A | ||
| ROIC | 9.51% |
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 Profit Margin of 8.17%. This is in the better half of the industry: USAC outperforms 64.52% of its industry peers.
USAC has a better Operating Margin (31.72%) than 95.16% of its industry peers.
In the last couple of years the Operating Margin of USAC has grown nicely.
Looking at the Gross Margin, with a value of 66.96%, USAC belongs to the top of the industry, outperforming 98.39% 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 | 31.72% | ||
| PM (TTM) | 8.17% | ||
| GM | 66.96% |
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
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.
The number of shares outstanding for USAC has been increased compared to 5 years ago.
USAC has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of USAC is 12.34, which is on the high side as it means it would take USAC, 12.34 years of fcf income to pay off all of its debts.
USAC has a Debt to FCF ratio (12.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.1
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.47 indicates that USAC should not have too much problems paying its short term obligations.
USAC has a worse Current ratio (1.47) than 72.58% of its industry peers.
A Quick Ratio of 0.66 indicates that USAC may have some problems paying its short term obligations.
USAC has a worse Quick ratio (0.66) than 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
USAC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.35%, which is quite impressive.
USAC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.03%.
The Revenue has been growing slightly by 6.36% on average over the past years.
EPS 1Y (TTM)119.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-39.13%
Revenue 1Y (TTM)10.03%
Revenue growth 3Y14.53%
Revenue growth 5Y6.36%
Sales Q2Q%6.96%
3.2 Future
The Earnings Per Share is expected to grow by 23.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y3.66%
EPS Next 2Y22.37%
EPS Next 3Y23.93%
EPS Next 5YN/A
Revenue Next Year13.8%
Revenue Next 2Y9.28%
Revenue Next 3Y7.54%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.12, USAC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of USAC indicates a slightly more expensive valuation: USAC is more expensive than 66.13% of the companies listed in the same industry.
USAC is valuated rather expensively when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.30, USAC is valued on the expensive side.
USAC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. USAC is more expensive than 74.19% of the companies in the same industry.
USAC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 21.3 |
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 77.42% of the companies in the same industry.
USAC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 9.38 |
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.
The decent profitability rating of USAC may justify a higher PE ratio.
USAC's earnings are expected to grow with 23.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)9.88
PEG (5Y)N/A
EPS Next 2Y22.37%
EPS Next 3Y23.93%
5. Dividend
5.1 Amount
USAC has a Yearly Dividend Yield of 8.55%, which is a nice return.
Compared to an average industry Dividend Yield of 3.53, USAC pays a better dividend. On top of this USAC pays more dividend than 98.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, USAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.55% |
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
337.05% of the earnings are spent on dividend by USAC. This is not a sustainable payout ratio.
DP337.05%
EPS Next 2Y22.37%
EPS Next 3Y23.93%
24.56
-0.27 (-1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.3%
Inst Owner Change0.49%
Ins Owners0.47%
Ins Owner Change0.02%
Market Cap2.89B
Analysts50.91
Price Target27.54 (12.13%)
Short Float %4.89%
Short Ratio12.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.55% |
Yearly Dividend2.43
Dividend Growth(5Y)-0.7%
DP337.05%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.43%
Min EPS beat(2)-38.94%
Max EPS beat(2)-27.91%
EPS beat(4)1
Avg EPS beat(4)-20.09%
Min EPS beat(4)-38.94%
Max EPS beat(4)23%
EPS beat(8)3
Avg EPS beat(8)-30.44%
EPS beat(12)4
Avg EPS beat(12)-71.63%
EPS beat(16)5
Avg EPS beat(16)-58.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-0.63%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)-0.74%
EPS NQ rev (1m)-10.4%
EPS NQ rev (3m)-14.05%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-20.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.12 | ||
| Fwd PE | 21.3 | ||
| P/S | 2.99 | ||
| P/FCF | 14.06 | ||
| P/OCF | 8.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.38 |
EPS(TTM)0.68
EY2.77%
EPS(NY)1.15
Fwd EY4.69%
FCF(TTM)1.75
FCFY7.11%
OCF(TTM)2.81
OCFY11.43%
SpS8.22
BVpS-0.1
TBVpS-1.88
PEG (NY)9.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | N/A | ||
| ROCE | 12.03% | ||
| ROIC | 9.51% | ||
| ROICexc | 9.51% | ||
| ROICexgc | 10.36% | ||
| OM | 31.72% | ||
| PM (TTM) | 8.17% | ||
| GM | 66.96% | ||
| FCFM | 21.26% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 12.34 | ||
| Debt/EBITDA | 4.38 | ||
| Cap/Depr | 45.83% | ||
| Cap/Sales | 12.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.06% | ||
| Profit Quality | 260.2% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | N/A |
F-Score7
WACC8.65%
ROIC/WACC1.1
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)119.35%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-39.13%
EPS Next Y3.66%
EPS Next 2Y22.37%
EPS Next 3Y23.93%
EPS Next 5YN/A
Revenue 1Y (TTM)10.03%
Revenue growth 3Y14.53%
Revenue growth 5Y6.36%
Sales Q2Q%6.96%
Revenue Next Year13.8%
Revenue Next 2Y9.28%
Revenue Next 3Y7.54%
Revenue Next 5YN/A
EBIT growth 1Y18.38%
EBIT growth 3Y27.94%
EBIT growth 5Y11.38%
EBIT Next Year98.43%
EBIT Next 3Y29.27%
EBIT Next 5YN/A
FCF growth 1Y82.79%
FCF growth 3Y-14.74%
FCF growth 5Y1.06%
OCF growth 1Y23.25%
OCF growth 3Y8.75%
OCF growth 5Y2.57%