Provides natural gas compression services. Offers compression services to oil companies and independent producers. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 12% a year over the last 4 years. Every year shown ended in profit.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
Clearly below the class average.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
The stock trades below its recent peak — about 9% off the top. A pullback, not a collapse.
Over the last 4 years, sales grew about 12% a year on average.
Over the last 12 months, company executives reported 24 buys and 13 sells. Management buying with its own money is usually read as a good sign.
It pays out $2.10 per share each year — regular cash for whoever holds the stock.
The company’s market value is 36 times its annual profit. Even a small disappointment could hit the price hard.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 19/100.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 43/100. For a turnaround signal, the stock first needs to close the gap with the market.
On our five-subject report card, USAC sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: USAC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.