USA Compression Partners LP Common Units Representing Limited Partner Interests (USAC)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

USA Compression Partners is not a glamorous business, but it is an essential one: it owns and operates natural gas compression equipment for producers and midstream operators. The figures do not prove a wide moat; ROCE is only 7.15%, and the very high ROE of 122.35% likely reflects leverage rather than exceptional returns on capital. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $342.1 million and net income $45.7 million, up sharply from revenue of $250.1 million and net income of $28.6 million in fiscal Q2 2025. Full-year fiscal 2025 revenue was $998.1 million and net income $111.3 million, versus $950.4 million and $99.6 million in fiscal 2024. That is real growth, and FairStock labels it a FAST GROWER on 81.4% annual profit growth over four years. However, the balance sheet demands respect: D/E is 10.30 and Altman Z-Score is 0.87. At the 2026-10-09 close of $25.95, FairStock's P/E is 24.25, P/B 13.11, PEG 0.41, and FCF yield 8.2%. The 7.82% distribution yield is attractive, and beta of 0.20 is low, but Graham Number of $6.90 implies a margin of safety of -276.09%. I would want evidence that growth and cash flow can service debt while sustaining distributions. Price already reflects much of the growth; the risk is that leverage turns a good service business into a fragile security.

In plain English: USA Compression Partners provides equipment and services that help move natural gas for energy companies. Its sales and profits have grown quickly, and it pays a large cash distribution, but it carries a lot of debt and the share price looks high compared with its accounting value and reported profit. The business is generating cash, but the price appears full and the balance sheet is a major risk.

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Data as of 2026-10-09 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer