USAC's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 0.28 -- higher than only 4.36% of US-listed equities with positive expected earnings growth.
Of note is the ratio of USA Compression Partners LP's sales and general administrative expense to its total operating expenses; only 4.01% of US stocks have a lower such ratio.
Over the past twelve months, USAC has reported earnings growth of -667.72%, putting it ahead of only 3.02% of US stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to USA Compression Partners LP are VVI, HNRG, OR, GTE, and MOS.
USA Compression Partners, LP Common Limited Partner Interests (USAC) Company Bio
USA Compression Partners LP provides natural gas compression services under term contracts with customers in the oil and gas industry in the United States. It engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. The company was founded in 1998 and is based in Austin, Texas.
USAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for USAC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that USA Compression Partners LP ranked in the 90th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1868.17%. As for the metrics that stood out in our discounted cash flow analysis of USA Compression Partners LP, consider:
36% of the company's capital comes from equity, which is greater than merely 14.53% of stocks in our cash flow based forecasting set.
USA Compression Partners LP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.87. This coverage rate is greater than that of merely 14.17% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, USA Compression Partners LP experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WES, SNMP, CELP, HP, and PTEN can be thought of as valuation peers to USAC, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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USA Compression Partners, LP (NYSE: USAC) ("USA Compression") today announced a cash distribution of $0.525 per common unit ($2.10 on an annualized basis) for the second quarter of 2020. The distribution will be paid on August 10, 2020, to unitholders of record as of the close of business on July 31, 2020.
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