📊 USAC Key Takeaways
Is USA Compression Partners, LP (USAC) a Good Investment?
USA Compression demonstrates strong operational fundamentals with excellent free cash flow generation ($277M, 27.8% margin) and accelerating profitability (+11.8% net income growth). However, overleveraged balance sheet with negative equity and minimal liquidity ($8.6M cash, 0.55x quick ratio) creates meaningful financial risk that constrains rating strength.
Why Buy USA Compression Partners, LP Stock? USAC Key Strengths
- Exceptional free cash flow generation of $277M annually converting 27.8% of revenue to cash
- Profitability growing faster than revenue (net income +11.8% vs revenue +5.0%) indicates operational leverage and efficiency gains
- Strong operating margin of 30.7% demonstrates pricing power and cost control in competitive natural gas transmission sector
- Interest coverage ratio of 6.6x shows adequate debt service capacity from operating earnings
- Operating cash flow of $394.3M provides substantial cash generation to service obligations
USAC Stock Risks: USA Compression Partners, LP Investment Risks
- Severely overleveraged capital structure with liabilities ($2.7B) exceeding total assets ($2.6B), implying negative shareholder equity
- Critical liquidity constraints with only $8.6M cash on balance sheet and quick ratio of 0.55x indicating near-term refinancing risk
- High absolute debt burden of $2.5B long-term debt limits financial flexibility and increases covenant violation risk
- Minimal gross margin of 3.1% provides negligible buffer against commodity price shocks, cost inflation, or demand deterioration
- Partnership structure may require substantial cash distributions to unitholders limiting balance sheet repair capacity
Key Metrics to Watch
- Operating cash flow trend and maintenance of $250M+ annual free cash flow sustainability
- Net debt levels and leverage ratios (debt/EBITDA) relative to debt covenants
- Interest coverage ratio as primary early warning indicator of financial distress
- Cash balance and liquidity management given critically low $8.6M reserve position
USA Compression Partners, LP (USAC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 27.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
USAC Profit Margin, ROE & Profitability Analysis
USAC vs Energy Sector: How USA Compression Partners, LP Compares
How USA Compression Partners, LP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is USA Compression Partners, LP Stock Overvalued? USAC Valuation Analysis 2026
Based on fundamental analysis, USA Compression Partners, LP has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
USA Compression Partners, LP Balance Sheet: USAC Debt, Cash & Liquidity
USAC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: USA Compression Partners, LP's revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion.
USAC Revenue Growth, EPS Growth & YoY Performance
USAC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $240.0M | $19.3M | N/A |
| Q2 2025 | $235.3M | $28.6M | N/A |
| Q1 2025 | $229.3M | $20.5M | N/A |
| Q3 2024 | $217.1M | $19.3M | N/A |
| Q2 2024 | $206.9M | $23.6M | N/A |
| Q1 2024 | $197.1M | $10.9M | N/A |
| Q3 2023 | $179.6M | $9.6M | N/A |
| Q2 2023 | $171.5M | $9.1M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
USA Compression Partners, LP Dividends, Buybacks & Capital Allocation
USAC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for USA Compression Partners, LP (CIK: 0001522727)
📋 Recent SEC Filings
❓ Frequently Asked Questions about USAC
What is the AI rating for USAC?
USA Compression Partners, LP (USAC) has an AI rating of BUY with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are USAC's key strengths?
Claude: Exceptional free cash flow generation of $277M annually converting 27.8% of revenue to cash. Profitability growing faster than revenue (net income +11.8% vs revenue +5.0%) indicates operational leverage and efficiency gains.
What are the risks of investing in USAC?
Claude: Severely overleveraged capital structure with liabilities ($2.7B) exceeding total assets ($2.6B), implying negative shareholder equity. Critical liquidity constraints with only $8.6M cash on balance sheet and quick ratio of 0.55x indicating near-term refinancing risk.
What is USAC's revenue and growth?
USA Compression Partners, LP reported revenue of $998.1M.
Does USAC pay dividends?
USA Compression Partners, LP does not currently pay dividends.
Where can I find USAC SEC filings?
Official SEC filings for USA Compression Partners, LP (CIK: 0001522727) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is USAC's EPS?
USA Compression Partners, LP has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is USAC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, USA Compression Partners, LP has a BUY rating with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is USAC stock overvalued or undervalued?
Valuation metrics for USAC: ROE of N/A (sector avg: 14%), net margin of 11.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy USAC stock in 2026?
Our dual AI analysis gives USA Compression Partners, LP a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is USAC's free cash flow?
USA Compression Partners, LP's operating cash flow is $394.3M, with capital expenditures of $117.3M. FCF margin is 27.8%.
How does USAC compare to other Energy stocks?
Vs Energy sector averages: Net margin 11.2% (avg: 12%), ROE N/A (avg: 14%), current ratio 1.27 (avg: 1.3).