Assessing USA Compression Partners (USAC)’s Valuation After Recent Pullback and Strong Multi‑Year Returns

USA Compression Partners (USAC) has been quietly treading water this month, but its longer track record tells a different story. Let us unpack how a flat near term trend fits a strong multi year return profile.

See our latest analysis for USA Compression Partners.

At around $23.51 per unit, USA Compression Partners has seen a modest pullback in its recent share price return. That sits against a powerful long term total shareholder return profile that suggests momentum has cooled rather than collapsed.

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With units drifting despite solid multi year returns and analysts still seeing upside to fair value, the key question now is whether USA Compression Partners is trading below its true worth or if the market already anticipates further growth.

Most Popular Narrative Narrative: 11.3% Undervalued

With USA Compression Partners closing at $23.51 versus a narrative fair value nearer $26.50, the story being told leans toward further upside potential.

High contract renewal rates and a shift toward longer term agreements, particularly in high growth Northeast and dry gas basins, are reducing revenue volatility and underpinning stable distributable cash flow and earnings visibility.

Read the complete narrative.

Curious how steady contract renewals, rising margins, and a richer profit multiple can justify a higher value for a midstream compressor? The full narrative reveals the growth runway, the profitability reset, and the future earnings lens driving this target.

Result: Fair Value of $26.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could unravel if concentrated customer exposure or higher capital and compliance costs squeeze margins more than expected.

Find out about the key risks to this USA Compression Partners narrative.

Another View, Valuation Looks Stretched

Against that 11.3% upside narrative, our fair ratio points to a very different story. USAC trades on a 29.9x price to earnings multiple versus a 21.7x fair ratio and 18.4x industry average, suggesting investors are paying up and leaving less room for error.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own USA Compression Partners Narrative

If you are not fully convinced by these perspectives or simply prefer to dive into the numbers yourself, you can craft a tailored view in just a few minutes: Do it your way.

A great starting point for your USA Compression Partners research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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