USA Compression (USAC) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: 9.27%
• Average Volume (3M): 225.94K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.58
• 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: 199,961
• 30 Day Avg. Volume: 225,937
• 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: 2.00
• Enterprise Value/Revenue: 5.62
• Enterprise Value/Gross Profit: 8.28
• Enterprise Value/Ebitda: 9.19
• 1Y Price Target: $27.33
• Price Target Upside: 20.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): $999.48M

• Rating: 70 Outperform
• Price Target: $27.00 ▲(19.21% Upside)

USA Compression's overall score reflects strong earnings call performance and strategic corporate events, which are offset by financial risks due to high leverage. Positive technical indicators and a high dividend yield further support the stock's attractiveness, despite valuation concerns.

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

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: Negative
• Last Price: 22.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 22.65 is below the 20-day moving average (MA) of 24.23, below the 50-day MA of 23.40, and below the 200-day MA of 23.57, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 17.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$4.44B	16.86	19.33%	3.16%	31.94%	64.74%
NGS	78 Outperform	$408.24M	21.95	7.15%	0.65%	9.53%	15.48%
USAC	70 Outperform	$2.78B	28.26	―	9.27%	6.66%	43.66%
LBRT	69 Neutral	$2.83B	15.54	9.21%	1.89%	-12.05%	-46.45%
SEI	69 Neutral	$3.08B	49.37	9.45%	1.07%	92.33%	116.22%
KGS	68 Neutral	$3.11B	45.96	5.86%	4.96%	19.43%	164.71%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

USA Compression Corporate Events

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.

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.

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.