USA Compression (USAC) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: 9.11%
• Average Volume (3M): 216.16K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.61
• Revenue Growth: 6.66%
• EPS Growth: 43.66%
• Country: US
• Employees: 854
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.26
• Shares Outstanding: 122,685,470
• 10 Day Avg. Volume: 226,962
• 30 Day Avg. Volume: 216,165
• PEG Ratio: 0.11
• Price to Book (P/B): 96.24
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 19.57
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 5.80
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 9.49
• 1Y Price Target: $26.75
• Price Target Upside: 3.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $28.00 ▲(8.49% Upside)

The score is capped primarily by balance-sheet risk (very high debt and negative/near-zero equity) despite strong cash generation and improving profitability. Momentum and trend indicators are supportive, and the earnings call plus the J-W Power acquisition add positive catalysts, while the high P/E keeps valuation from scoring higher even with an elevated dividend yield.

Positive Factors

Strategic Acquisition

The acquisition of J-W Power expands USAC's fleet and geographic reach, enhancing market leadership and providing diversification benefits, which are expected to drive long-term growth and operational efficiency.

Revenue Growth

Consistent revenue growth indicates strong demand for USAC's services, supporting its market position and potential for future expansion, which is crucial for long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances USAC's ability to reinvest in growth opportunities and manage debt, ensuring financial flexibility and supporting sustainable operations.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting USAC's ability to respond to market changes and invest in growth, impacting long-term resilience.

Increased Lead Times

Extended lead times could delay deployments and affect service delivery, potentially impacting customer satisfaction and revenue growth in the long term.

Negative Equity

Negative equity highlights a weak capital structure, which can undermine financial stability and limit USAC's ability to secure favorable financing, affecting long-term growth prospects.

USA Compression Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

USA Compression generates revenue primarily through the rental of its compression equipment and services. The company operates a large fleet of compression units, which are leased to customers under long-term contracts, providing a steady stream of income. Key revenue streams include the rental fees for equipment, maintenance services, and additional products associated with compression services. USAC also benefits from its strategic partnerships with major oil and gas producers, enhancing its market presence and securing long-term contracts. Additionally, the company may experience revenue growth through expansions in its service offerings or by entering new geographical markets, leveraging the increasing demand for natural gas infrastructure.

USA Compression Financial Statement Overview

Summary

Strong operating results and cash generation (TTM operating cash flow ~$385M; free cash flow ~$290M; improving margins and net income), but the balance sheet is a major constraint with very high debt (~$2.54B) and a negative/near-zero equity base (equity ~-$77M TTM), reducing financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue is ~ $992M, up modestly versus 2024 (~$950M), extending a multi-year recovery from 2021–2022 levels. Profitability is strong for the period shown, with TTM gross margin (~68%), operating margin (~33%), and net margin (~11%) all improving versus prior years, and net income rising from ~$10M (2021) to ~$109M TTM. The key weakness is historical volatility (large losses in 2020), which highlights cyclicality and sensitivity to industry conditions even though recent execution has been solid.

Balance Sheet

Leverage is the major overhang: total debt is very high at ~$2.54B TTM against a small/negative equity base (equity ~ -$77M TTM, ~+$28M in 2024), indicating a thin capital cushion and elevated balance-sheet risk. While total assets are sizable (~$2.66B TTM), the equity position has deteriorated from 2021–2023 levels, and returns on equity are distorted by the negative/near-zero equity base. The balance sheet is functional, but the capital structure is aggressive and leaves less flexibility if conditions weaken.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is ~ $385M and free cash flow is ~ $290M, with a sharp improvement versus 2024 free cash flow (~$136M). Operating cash flow exceeds net income (TTM operating cash flow to net income ~2.1x), suggesting earnings are supported by cash conversion. The main weakness is that free cash flow relative to net income is not consistently high across years (notably weaker in 2023–2024), implying some variability in reinvestment needs and working-capital timing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	991.51M	950.45M	846.18M	704.60M	632.64M	667.68M
Gross Profit	672.76M	641.72M	565.20M	473.90M	441.85M	465.19M
EBITDA	605.72M	567.49M	489.60M	408.98M	382.17M	401.76M
Net Income	109.00M	99.58M	68.27M	30.32M	10.28M	-594.73M
Balance Sheet
Total Assets	2.66B	2.75B	2.74B	2.67B	2.77B	2.95B
Cash, Cash Equivalents and Short-Term Investments	0.00	14.00K	11.00K	35.00K	0.00	2.00K
Total Debt	2.54B	2.52B	2.35B	2.13B	2.00B	1.95B
Total Liabilities	2.74B	2.72B	2.55B	2.30B	2.19B	2.13B
Stockholders Equity	-76.81M	27.76M	183.05M	361.01M	578.42M	814.96M
Cash Flow
Free Cash Flow	290.43M	136.48M	33.36M	126.37M	220.21M	184.13M
Operating Cash Flow	384.97M	341.33M	271.88M	260.59M	265.43M	293.20M
Investing Cash Flow	-90.70M	-202.01M	-232.65M	-129.94M	-39.19M	-105.10M
Financing Cash Flow	-294.35M	-139.32M	-39.26M	-130.61M	-226.24M	-188.11M

USA Compression Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USAC, the sentiment is Positive. The current price of 25.81 is above the 20-day moving average (MA) of 24.94, above the 50-day MA of 24.01, and above the 200-day MA of 23.16, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USAC.

USA Compression Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AROC	78 Outperform	$5.26B	19.85	19.33%	3.08%	31.94%	64.74%
NGS	74 Outperform	$434.38M	23.71	7.15%	0.63%	9.53%	15.48%
USAC	67 Neutral	$3.17B	31.85	―	9.11%	6.66%	43.66%
KGS	66 Neutral	$3.63B	53.08	5.86%	4.86%	19.43%	164.71%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
LBRT	65 Neutral	$3.91B	29.12	9.21%	1.78%	-12.05%	-46.45%
SEI	64 Neutral	$3.31B	62.15	9.45%	1.07%	92.33%	116.22%

USA Compression Corporate Events

USA Compression Completes Transformative J-W Power Acquisition

On January 12, 2026, USA Compression Partners, LP closed its previously announced acquisition of J-W Power Company in a transaction valued at approximately $860 million, funded with about $430 million in cash drawn from its revolving credit facility and roughly 18.2 million common units issued to the seller. The deal adds more than 0.8 million active horsepower across regions including the Northeast, Mid-Continent, Rockies, Gulf Coast and Permian Basin, bringing USA Compression’s total active fleet to around 4.4 million horsepower, and introduces a diversified, high-quality customer base that bolsters its presence in mid‑to‑large horsepower compression. In connection with the closing, the seller received registration rights for the new common units, agreed to staggered lock-up periods on their sale, obtained a one-year non-voting board observer seat, and had affiliated entities joined as guarantors under USA Compression’s credit facility and senior notes, steps that collectively strengthen the partnership’s capital structure and governance framework while signaling an expansion-focused strategy for unitholders and other stakeholders.

The most recent analyst rating on (USAC) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression to Attend December Energy Conferences

USA Compression Partners, LP announced that its senior management will participate in the Mizuho Power, Energy & Infrastructure Conference on December 8 and the Wells Fargo 24th Annual Energy & Power Symposium on December 9. During these events, they will engage with the investment community, and relevant presentation materials will be available on their website. This engagement reflects the company’s ongoing efforts to maintain transparency and communication with investors, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (USAC) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression Announces Strategic Acquisition of J-W Power

On November 29, 2025, USA Compression Partners, LP announced a strategic acquisition of J-W Power Company for approximately $860 million, expected to close in the first quarter of 2026. This acquisition is set to expand USA Compression’s fleet to 4.4 million active horsepower and enhance its geographic diversification across key U.S. regions, strengthening its market leadership in mid-to-large horsepower compression services.

The most recent analyst rating on (USAC) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.