USA Compression Partners, LP
$27.90
-0.53%USA Compression Partners, LP, a growth-oriented Delaware limited partnership that provides natural gas compression services in terms of total compression fleet horsepower. The company offers compression services to oil companies and independent producers, processors, gatherers, and transporters of natural gas and crude oil, as well as operates stations. It primarily focuses on providing natural gas compression services to infrastructure applications, including centralized natural gas gathering systems and processing facilities. The company was founded in 1998 and is headquartered in Austin, Texas.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 32.8).
Valuation inputs: P/E 32.8, earnings yield +3.0%, momentum -0.5%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -99.0%, ROIC +12.5%).
Profitability stack: net margin +11.2%, ROE -99.0%, ROIC +12.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +104.3%, momentum -0.5%, net margin +11.2%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
USA Compression Partners, LP Market vs Earnings Trajectory
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USA Compression Partners, LP Fair Value Envelope
USA Compression Partners, LP Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
USA Compression Partners, LP Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
USA Compression Partners, LP Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
USA Compression Partners, LP Street Expectations Map
Wall Street analysts project that USAC stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 27.50, with estimates ranging from a low of 25.00 to a high of 30.00.
The consensus 1-year price target stands at 27.50, with estimates ranging from a low of 25.00 to a high of 30.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
USA Compression Partners, LP Insider Positioning
During the last 12 months, insiders have purchased $268K and sold $1.07M worth of USAC shares, resulting in $798K of net selling activity.
3 Months
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3-6 Months
10.0K
267.50K
40.0K
1.07M
-798K
-$798K
6-9 Months
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+$0
9-12 Months
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Top Buyers
Whitehurst Bradford D.
Director
$268K
Top Sellers
Porter Christopher W
Officer: See Remarks
$1.07M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $798K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
usac Dividend History
Learning Layer
Related Guides
Build conviction on USAC by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.