USA Compression (USAC) AI Stock Analysis

• Market Cap: $2.95B
• Dividend Yield: 8.73%
• Average Volume (3M): 150.32K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.57
• Revenue Growth: 8.22%
• EPS Growth: 28.05%
• Country: US
• Employees: 854
• Sector: Energy
• Sector Strength: 71
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.22
• Shares Outstanding: 122,683,945
• 10 Day Avg. Volume: 114,614
• 30 Day Avg. Volume: 150,322
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 14.60
• Enterprise Value/Ebitda: 9.68
• 1Y Price Target: $26.43
• Price Target Upside: 9.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $26.00 ▲(8.06% Upside)

The overall score reflects strong earnings call insights and technical indicators, tempered by financial risks from high leverage and valuation concerns. The company's robust revenue growth and strategic initiatives are promising, but balance sheet challenges need addressing.

Positive Factors

Future Orders

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

Operational Outlook

The strength of USAC's operational outlook is driven by strong utilization and tariff growth trajectory, leading to raised estimates.

Negative Factors

Deleveraging Constraints

Still wood to chop on deleveraging, which remains a constraint on 2024/2025 outlook.

Growth Messaging 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 generates revenue primarily through the rental and sale of its compression equipment. The company offers long-term and short-term rental agreements to oil and gas producers, which provides a steady stream of income. Additionally, USAC earns revenue from maintenance and service contracts associated with its equipment, ensuring optimal performance for its clients. Key revenue streams include fees from leasing compression units, particularly in high-demand areas, and the provision of specialized services tailored to customer needs. Strategic partnerships with major energy producers and operators enhance USAC's market position and contribute significantly to its earnings, as these collaborations often lead to long-term contracts and recurring revenue.

USA Compression Financial Statement Overview

Summary

USA Compression shows strong revenue and profitability recovery, with improved cash flow generation. However, negative equity and high leverage present risks that need addressing 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	981.22M	950.45M	846.18M	704.60M	632.64M	667.68M
Gross Profit	376.18M	372.97M	315.37M	233.59M	199.49M	222.78M
EBITDA	567.50M	560.03M	485.65M	406.06M	379.85M	-225.40M
Net Income	93.83M	99.58M	68.27M	30.32M	10.28M	-594.73M
Balance Sheet
Total Assets	2.67B	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	2.52B	2.51B	2.35B	2.12B	1.99B	1.95B
Total Liabilities	2.72B	2.72B	2.55B	2.78B	2.77B	2.13B
Stockholders Equity	-48.01M	27.76M	183.05M	-116.30M	578.42M	814.96M
Cash Flow
Free Cash Flow	281.50M	136.48M	33.36M	126.37M	220.21M	184.13M
Operating Cash Flow	357.57M	341.33M	271.88M	260.59M	265.43M	293.20M
Investing Cash Flow	-95.69M	-202.01M	-232.65M	-129.94M	-39.19M	-105.10M
Financing Cash Flow	-261.88M	-139.32M	-39.26M	-130.61M	-226.24M	-188.11M

USA Compression Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USAC, the sentiment is Neutral. The current price of 24.06 is below the 20-day moving average (MA) of 24.06, above the 50-day MA of 24.00, and above the 200-day MA of 24.03, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USAC.

USA Compression Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NGS	74 Outperform	$328.11M	18.37	7.00%	0.38%	14.77%	34.74%
AROC	73 Outperform	$4.35B	18.74	19.85%	3.09%	28.22%	49.17%
KGS	71 Outperform	$3.14B	40.24	6.16%	4.81%	31.01%	39.51%
USAC	67 Neutral	$2.95B	36.26	314.74%	8.73%	8.22%	28.05%
Sector *	66 Neutral	$15.46B	7.35	3.20%	5.24%	4.31%	-62.31%
LBRT	64 Neutral	$1.82B	8.64	10.92%	2.76%	-9.32%	-48.26%
WTTR	59 Neutral	$1.03B	26.45	4.18%	3.29%	-2.46%	-44.11%

USA Compression Corporate Events

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.

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.

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.

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.

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.

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.