Last Updated: 19 Sep 2024
Executive Summary
USA Compression Partners LP (USAC) is a midstream energy company that provides compression services to the natural gas and crude oil industry. The company has a market capitalization of $2.67 billion and trades on the NYSE under the ticker symbol USAC. The latest stock price is $22.83.
Company Overview
USAC is headquartered in Austin, Texas, and has operations in the major natural gas and crude oil producing regions of the United States. The company provides a range of compression services, including gas gathering, processing, and transportation. USAC also provides compression services for crude oil production and transportation.
Fundamental Analysis
USAC's financial performance has been strong in recent years. The company's revenue has grown from $741.7 million in 2019 to $906.7 million in 2023. Net income has also increased from $100.6 million in 2019 to $140.4 million in 2023.
USAC's profitability metrics are also strong. The company's gross profit margin has averaged 52.3% over the past five years. The operating profit margin has averaged 30.4% over the same period.
USAC's balance sheet is also strong. The company has a low level of debt and a high level of liquidity. The company's debt-to-equity ratio is 0.32 and its current ratio is 1.52.
Technical Analysis
USAC's stock price has been in a downtrend since early 2023. The stock price has fallen from a high of $27.27 in January 2023 to a low of $20.24 in June 2023. The stock price is currently trading at $22.83.
The technical indicators are mixed. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is below the signal line, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for USAC is neutral. The stock price is trading in a range between $20.24 and $22.83. The technical indicators are mixed.
Long Term Outlook
The long-term outlook for USAC is positive. The company has a strong financial position and a growing customer base. The demand for compression services is expected to increase in the coming years as the natural gas and crude oil industry continues to grow.
Analyst Recommendations
The analysts have a mixed view on USAC. Three analysts have a buy rating on the stock, one analyst has a hold rating, and one analyst has a sell rating. The average analyst target price is $25.75.
