USA Compression (USAC) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: 8.32%
• Average Volume (3M): 272.19K
• Price to Earnings (P/E): 31.5
• Beta (1Y): 0.59
• 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: 202,354
• 30 Day Avg. Volume: 272,192
• 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: 1.80
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 9.19
• 1Y Price Target: $26.33
• Price Target Upside: 4.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $23.00 ▼(-8.91% Downside)

USA Compression's overall stock score is driven by strong earnings call performance and robust cash flow generation. However, high leverage and negative equity pose significant financial risks, and technical indicators suggest bearish momentum. The attractive dividend yield partially offsets the high P/E ratio, providing some valuation support.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for USAC's services and effective market penetration, supporting long-term business stability.

Operational Efficiency

Operational efficiency gains through cost savings enhance profitability and competitiveness, ensuring sustainable growth and margin improvement.

Successful Refinancing

Successful refinancing lowers interest expenses, enhancing financial flexibility and supporting long-term strategic initiatives.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Increased Lead Times

Long lead times can delay project execution and revenue realization, hindering growth and customer satisfaction in the long term.

Modest G&A Growth

Rising G&A expenses could pressure margins and profitability, potentially affecting the company's ability to invest in growth opportunities.

USA Compression Business Overview & Revenue Model

Company Description

USA Compression Partners, LP (USAC) is a leading provider of natural gas compression services in the United States. The company primarily operates in the midstream sector of the oil and gas industry, focusing on providing compression services to producers of natural gas and natural gas liquids. USAC offers a range of services, including the rental of compression equipment and related services, which are crucial for optimizing the transportation and processing of natural gas through pipelines.

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

USA Compression shows strong revenue growth and profitability, but faces significant financial risks due to high leverage and negative equity. Cash flow generation is robust, yet the capital structure needs improvement for long-term stability.

Income Statement

USA Compression has demonstrated a strong revenue growth trajectory, with a notable increase in revenue over the TTM period. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, the slight decline in net profit margin from the previous year suggests some pressure on net income. Overall, the income statement reflects a solid financial performance with room for improvement in net profitability.

Balance Sheet

The balance sheet reveals significant leverage, with a high debt-to-equity ratio due to negative equity in the TTM period. This poses a risk to financial stability. Despite this, the company has shown improvement in return on equity, indicating better utilization of equity to generate profits. The equity ratio is concerning, highlighting the need for strengthening the equity base to enhance financial resilience.

Cash Flow

Cash flow analysis shows a robust growth in free cash flow, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio indicates that a significant portion of cash flow is being reinvested or used for debt servicing, which could limit flexibility in capital allocation.

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: 25.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 25.25 is above the 20-day moving average (MA) of 23.60, above the 50-day MA of 23.09, and above the 200-day MA of 23.67, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 68.66 is Neutral, neither overbought nor oversold. The STOCH value of 95.46 is Negative, 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	79 Outperform	$4.30B	16.33	19.33%	3.26%	31.94%	64.74%
NGS	75 Outperform	$389.26M	20.93	7.15%	0.68%	9.53%	15.48%
LBRT	68 Neutral	$2.87B	15.76	9.21%	1.80%	-12.05%	-46.45%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SEI	64 Neutral	$3.28B	52.59	9.45%	0.89%	92.33%	116.22%
USAC	61 Neutral	$3.10B	31.50	―	8.32%	6.66%	43.66%
KGS	61 Neutral	$3.05B	44.55	5.86%	5.11%	19.43%	164.71%

USA Compression Corporate Events

USA Compression Issues $750M Senior Notes for Refinancing

On September 24, 2025, USA Compression Partners, LP and its subsidiary issued $750 million in senior notes due 2033, with a 6.250% interest rate, to refinance existing debt and cover related expenses. This move aims to optimize the company’s financial structure by redeeming higher-interest notes due in 2027, potentially improving its market position and operational efficiency.

The most recent analyst rating on (USAC) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression to Attend Barclays Energy Conference

USA Compression Partners, LP announced its participation in the Barclays 39th Annual Energy-Power Conference on September 3. The senior management will engage with the investment community, sharing insights and presentation materials on their website, potentially impacting investor relations and market perception.

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 Amends Credit Agreement for Flexibility

On August 27, 2025, USA Compression Partners, LP amended and restated its credit agreement, now maturing on August 27, 2030, with specific conditions that could lead to earlier maturity dates in 2027 or 2028. The agreement includes a $1.75 billion asset-based revolving credit facility, secured by the company’s assets and guaranteed by its subsidiaries, allowing for increased financial flexibility and potential expansion of commitments by $300 million. This strategic financial move is designed to support the company’s operational needs, refinance existing debt, and enhance its market positioning.

The most recent analyst rating on (USAC) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on USA Compression stock, see the USAC Stock Forecast page.

USA Compression Engages at Citi Natural Resources Conference

On August 12, members of USA Compression‘s senior management attended the Citi Natural Resources Conference, engaging with the investment community. Presentation materials from these meetings were made available on the company’s website, reflecting USA Compression’s ongoing 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.

USA Compression Partners Reports Record Revenues and Strong Outlook

USA Compression Partners’ recent earnings call conveyed a generally positive sentiment, underscored by record revenues and strong demand projections. Despite challenges such as flat horsepower growth and rising costs, the company remains optimistic, buoyed by operational efficiency gains and industry accolades.