USA Compression Profitability Analysis
| USAC Stock | USD 23.05 0.01 0.04% |
Net Income | First Reported 2010-03-31 | Previous Quarter 31.2 M | Current Value 19.3 M | Quarterly Volatility 82 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.4 | 0.3727 |
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For USA Compression profitability analysis, we use financial ratios and fundamental drivers that measure the ability of USA Compression to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well USA Compression Partners utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between USA Compression's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of USA Compression Partners over time as well as its relative position and ranking within its peers.
USA |
USA Compression's Revenue Breakdown by Earning Segment
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Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of USA Compression. If investors know USA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about USA Compression listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.44 | Dividend Share 2.1 | Earnings Share 0.55 | Revenue Per Share 8.525 | Quarterly Revenue Growth 0.105 |
The market value of USA Compression Partners is measured differently than its book value, which is the value of USA that is recorded on the company's balance sheet. Investors also form their own opinion of USA Compression's value that differs from its market value or its book value, called intrinsic value, which is USA Compression's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because USA Compression's market value can be influenced by many factors that don't directly affect USA Compression's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between USA Compression's value and its price as these two are different measures arrived at by different means. Investors typically determine if USA Compression is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, USA Compression's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
USA Compression Partners Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining USA Compression's current stock value. Our valuation model uses many indicators to compare USA Compression value to that of its competitors to determine the firm's financial worth. USA Compression Partners is rated second in return on equity category among its peers. It is rated fourth in return on asset category among its peers reporting about 0.11 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for USA Compression Partners is roughly 9.08 . At present, USA Compression's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the USA Compression's earnings, one of the primary drivers of an investment's value.USA Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
USA Compression |
| = | 0.6 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
USA Compression |
| = | 0.0665 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
USA Return On Asset Comparison
USA Compression is currently under evaluation in return on asset category among its peers.
USA Compression Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in USA Compression, profitability is also one of the essential criteria for including it into their portfolios because, without profit, USA Compression will eventually generate negative long term returns. The profitability progress is the general direction of USA Compression's change in net profit over the period of time. It can combine multiple indicators of USA Compression, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 7.9 M | 8.3 M | |
| Operating Income | 232 M | 243.6 M | |
| Income Before Tax | 69.6 M | 73.1 M | |
| Total Other Income Expense Net | -162.3 M | -154.2 M | |
| Net Income | 68.3 M | 71.7 M | |
| Income Tax Expense | 1.4 M | 1.4 M | |
| Net Income From Continuing Ops | 63.8 M | 67 M | |
| Non Operating Income Net Other | 104.7 K | 56 K | |
| Net Loss | -16.6 M | -17.4 M | |
| Interest Income | 146.2 M | 153.5 M | |
| Net Interest Income | -163.1 M | -154.9 M | |
| Change To Netincome | 4.4 M | 4.2 M | |
| Net Income Per Share | 0.69 | 0.73 | |
| Income Quality | 3.98 | 3.78 | |
| Net Income Per E B T | 0.98 | 0.72 |
USA Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on USA Compression. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of USA Compression position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the USA Compression's important profitability drivers and their relationship over time.
USA Compression Profitability Trends
USA Compression profitability trend refers to the progression of profit or loss within a business. An upward trend means that USA Compression's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is USA Compression's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
USA Compression Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between USA Compression different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards USA Compression in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down USA Compression's future profitability.
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Use USA Compression in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if USA Compression position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in USA Compression will appreciate offsetting losses from the drop in the long position's value.USA Compression Pair Trading
USA Compression Partners Pair Trading Analysis
The ability to find closely correlated positions to USA Compression could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace USA Compression when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back USA Compression - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling USA Compression Partners to buy it.
The correlation of USA Compression is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as USA Compression moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if USA Compression Partners moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for USA Compression can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your USA Compression position
In addition to having USA Compression in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project USA Compression's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of USA Compression Partners at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include USA Compression's income statement, its balance sheet, and the statement of cash flows.