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 63 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of USAC while its profitability can be described as average. 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.
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's Return On Assets of 2.91% is in line compared to the rest of the industry. USAC outperforms 42.86% of its industry peers.
With a decent Return On Invested Capital value of 9.51%, USAC is doing good in the industry, outperforming 71.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for USAC is in line with the industry average of 8.50%.
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
Looking at the Profit Margin, with a value of 8.17%, USAC is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
With an excellent Operating Margin value of 31.72%, USAC belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of USAC has grown nicely.
With an excellent Gross Margin value of 66.96%, USAC belongs to the best of the industry, outperforming 98.41% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so USAC is still creating some value.
The number of shares outstanding for USAC has been increased compared to 1 year ago.
Compared to 5 years ago, USAC has more shares outstanding
Compared to 1 year ago, USAC has a worse debt to assets ratio.
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/WACC1.34
WACC7.1%
2.3 Liquidity
USAC has a Current Ratio of 1.47. This is a normal value and indicates that USAC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.47, USAC is not doing good in the industry: 73.02% of the companies in the same industry are doing better.
USAC has a Quick Ratio of 1.47. 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's Quick ratio of 0.66 is on the low side compared to the rest of the industry. USAC is outperformed by 96.83% 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.
The Revenue has grown by 10.03% in the past year. This is quite good.
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
Based on estimates for the next years, USAC will show a very strong growth in Earnings Per Share. The EPS will grow by 22.38% on average per year.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y8.29%
EPS Next 2Y22.15%
EPS Next 3Y22.38%
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
Based on the Price/Earnings ratio of 36.25, the valuation of USAC can be described as expensive.
USAC's Price/Earnings ratio is a bit more expensive when compared to the industry. USAC is more expensive than 68.25% of the companies in the same industry.
USAC is valuated rather expensively when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.45, which indicates a rather expensive current valuation of USAC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of USAC indicates a slightly more expensive valuation: USAC is more expensive than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. USAC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.25 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of USAC indicates a rather expensive valuation: USAC more expensive than 80.95% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as USAC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.11 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of USAC may justify a higher PE ratio.
USAC's earnings are expected to grow with 22.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.37
PEG (5Y)N/A
EPS Next 2Y22.15%
EPS Next 3Y22.38%
5. Dividend
5.1 Amount
USAC has a Yearly Dividend Yield of 8.30%, which is a nice return.
Compared to an average industry Dividend Yield of 3.49, USAC pays a better dividend. On top of this USAC pays more dividend than 98.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, USAC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
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
337.05% of the earnings are spent on dividend by USAC. This is not a sustainable payout ratio.
DP337.05%
EPS Next 2Y22.15%
EPS Next 3Y22.38%
24.65
-0.26 (-1.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.3%
Inst Owner Change5.59%
Ins Owners0.47%
Ins Owner Change0.02%
Market Cap2.90B
Analysts50.91
Price Target27.54 (11.72%)
Short Float %3.86%
Short Ratio10.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.3% |
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)-0.74%
PT rev (3m)-3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.07%
EPS NY rev (1m)-14.25%
EPS NY rev (3m)-19.85%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.25 | ||
| Fwd PE | 21.45 | ||
| P/S | 3 | ||
| P/FCF | 14.11 | ||
| P/OCF | 8.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)0.68
EY2.76%
EPS(NY)1.15
Fwd EY4.66%
FCF(TTM)1.75
FCFY7.09%
OCF(TTM)2.81
OCFY11.39%
SpS8.22
BVpS-0.1
TBVpS-1.88
PEG (NY)4.37
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
WACC7.1%
ROIC/WACC1.34
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 Y8.29%
EPS Next 2Y22.15%
EPS Next 3Y22.38%
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%