USA Compression (USAC) AI Stock Analysis

• Market Cap: $2.89B
• Dividend Yield: 8.55%
• Average Volume (3M): 233.30K
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.48
• Revenue Growth: 10.03%
• EPS Growth: 65.28%
• Country: US
• Employees: 854
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.14
• Shares Outstanding: 117,582,370
• 10 Day Avg. Volume: 148,726
• 30 Day Avg. Volume: 233,297
• PEG Ratio: -4.39
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.15
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 14.53
• Enterprise Value/Ebitda: 2.61
• 1Y Price Target: $27.00
• Price Target Upside: 9.93% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 64 Neutral
• Price Target: $26.00 ▲(5.86%Upside)

USA Compression's score reflects its strong financial recovery and operational efficiency, tempered by significant financial risks from negative equity and high leverage. The earnings call highlighted robust operational performance but acknowledged ongoing market challenges. Technical indicators and valuation suggest caution, with the high dividend yield being a notable positive.

Positive Factors

Future growth prospects

USAC expects to order new units to be placed in-service and is already working on building a ~2026 order book.

Market conditions

USAC stands poised to benefit from macro tailwinds that should continue to drive financial and operational records.

Operational performance

USAC plans to add operating horsepower in FY25 and should benefit from CPI escalators and higher recontracting rates.

Negative Factors

Financial outlook

The partnership's initial FY25 adj EBITDA outlook was underwhelming, especially since annualizing USAC's 4Q24 result after a one-time $3mn tax credit would still imply FY25 EBITDA above the high-end of USAC's guidance range.

Spending efficiency

It has been difficult to connect USAC's outsized spend to actual horsepower / new unit additions.

Strategic clarity

USAC's messaging around growth has been less clear and at times contradictory, which is highlighted by the partnership's marked underperformance against AROC/KGS over the past year.

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 makes money primarily by providing natural gas compression services to energy companies. The company's revenue model is based on long-term, fee-based contracts with its customers, which typically include fixed monthly payments and provisions for cost pass-throughs. This model ensures a steady and predictable cash flow, largely insulated from the direct volatility of natural gas prices. Significant revenue streams include service fees for equipment rental, operation, and maintenance. The company's earnings are also bolstered by strategic partnerships and contracts with major oil and gas producers, ensuring a steady demand for its services. Additionally, USA Compression invests in expanding its fleet and enhancing its service capabilities to capture a larger market share and respond to growing industry needs.

USA Compression Financial Statement Overview

Summary

USA Compression shows strong revenue growth and improved profitability, with a significant increase in cash flow generation. However, the negative equity position and high leverage pose risks that must be addressed for long-term stability.

Income Statement

The income statement shows a strong recovery with a consistent increase in revenue from $632.6M in 2021 to $966.4M in TTM 2025. The gross profit margin improved to 38.8% in TTM 2025, indicating effective cost management. The net profit margin also increased to 10%, reflecting enhanced profitability. However, the EBIT margin of 30.8% and EBITDA margin of 48.3% suggest room for further efficiency improvements.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity of -$11.9M in TTM 2025, indicating potential financial instability. The debt-to-equity ratio is not meaningful due to negative equity, highlighting high leverage. Despite this, the company has managed to maintain a substantial asset base of $2.7B, suggesting potential for future recovery if debt levels are managed.

Cash Flow

Cash flow analysis shows a strong operating cash flow of $330M in TTM 2025, supporting the company's operations. Free cash flow has grown significantly to $205.5M, indicating improved cash generation capabilities. The operating cash flow to net income ratio is robust, suggesting efficient conversion of income into cash. However, the high capital expenditures could pose a risk if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	966.41M	950.45M	846.18M	704.60M	632.64M	667.68M
Gross Profit	375.24M	372.97M	315.37M	233.59M	199.49M	222.78M
EBITDA	466.75M	560.03M	485.65M	406.06M	379.85M	-225.40M
Net Income	96.51M	99.58M	68.27M	30.32M	10.28M	-594.73M
Balance Sheet
Total Assets	2.71B	2.75B	2.74B	2.67B	2.77B	2.95B
Cash, Cash Equivalents and Short-Term Investments	2.00K	14.00K	11.00K	35.00K	-18.55M	2.00K
Total Debt	2.55B	2.51B	2.35B	2.12B	1.99B	1.95B
Total Liabilities	2.73B	2.72B	2.55B	2.78B	2.77B	2.13B
Stockholders Equity	-11.90M	27.76M	183.05M	-116.30M	578.42M	814.96M
Cash Flow
Free Cash Flow	205.46M	136.48M	33.36M	126.37M	220.21M	184.13M
Operating Cash Flow	330.07M	341.33M	271.88M	260.59M	265.43M	293.20M
Investing Cash Flow	-121.48M	-202.01M	-232.65M	-129.94M	-39.19M	-105.10M
Financing Cash Flow	-208.59M	-139.32M	-39.26M	-130.61M	-226.24M	-188.11M

USA Compression Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 24.56 is above the 20-day moving average (MA) of 24.46, below the 50-day MA of 24.83, and above the 200-day MA of 24.11, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 12.81 is Positive, 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
NGS	78 Outperform	$306.23M	18.06	6.77%	―	22.64%	78.46%
KGS	77 Outperform	$2.78B	60.03	3.88%	5.32%	45.41%	-37.84%
AROC	75 Outperform	$4.00B	19.18	17.89%	3.85%	20.14%	43.55%
LBRT	74 Outperform	$2.15B	8.78	13.18%	2.34%	-7.45%	-44.88%
WTTR	72 Outperform	$1.18B	28.38	4.51%	2.76%	-4.91%	-46.51%
USAC	64 Neutral	$2.89B	36.74	148.57%	8.55%	10.03%	65.28%
Sector *	44 Neutral	AU$1.46B	-6.94	-23.02%	8.04%	5.33%	-26.92%

USA Compression Corporate Events

USA Compression Approves New Compensation Package for VP

On July 2, 2025, USA Compression GP, LLC’s Compensation Committee approved a new compensation package for Christopher W. Porter, the Vice President, General Counsel, and Secretary. The package includes an annual base salary of $435,000, participation in an annual cash incentive plan, and a long-term equity incentive plan. Mr. Porter plans to relocate to the company’s Dallas headquarters by June 2026, and his employment agreement will be amended to remove his right to terminate due to relocation and will not be renewed at the end of its term.

The most recent analyst rating on (USAC) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression to Attend J.P. Morgan Conference

USA Compression Partners, LP announced that its senior management will attend the J.P. Morgan Energy, Power, Renewables and Mining Conference on June 25. During this event, they plan to engage with the investment community, sharing presentation materials that will be available on their website. This participation underscores the company’s commitment to maintaining transparency with investors and stakeholders, potentially impacting its industry positioning by fostering investor relations.

The most recent analyst rating on (USAC) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression Engages at RBC Capital Conference

On June 4, USA Compression‘s senior management attended the RBC Capital Markets Global Energy, Power & Infrastructure Conference, engaging with the investment community. This participation highlights the company’s active role in investor relations and could influence its market positioning and stakeholder engagement.

The most recent analyst rating on (USAC) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression Engages at Energy Infrastructure Conference

On May 21, senior management from USA Compression Partners, LP attended the Energy Infrastructure Council CEO & Investor Conference, engaging with the investment community through a series of meetings. Presentation materials from these meetings were made available on the company’s website, highlighting their commitment to investor relations and transparency.

The most recent analyst rating on (USAC) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.