USA Compression Partners LPUSAC -5.52%73 Gross Margin % is 38.10% as of Mar. 2026, which is 15% above its 10-year median of 33.26. GuruFocus rates USAC with a GF Score™ of 73/100 and a GF Value™ of $25.62 (Fairly Valued). The stock has 6 warning signs investors should review. Among 867 Oil & Gas companies, USA Compression Partners LP ranks better than 67.36% on this metric.
USA Compression Partners LP (NYSE:USAC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
USA Compression Partners LP had a gross margin of 38.10% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
USA Compression Partners LP Gross Margin % Related Terms
USA Compression Partners LP Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Equipment & Services subindustry, USA Compression Partners LP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
USA Compression Partners LP Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, USA Compression Partners LP's Gross Margin % distribution charts can be found below:
* The bar in red indicates where USA Compression Partners LP's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
USA Compression Partners LP (USAC) has a Gross Margin % of 38.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on USA Compression Partners LP and its competitors. This is 15% above median its historical median of 33.26. According to the industry distribution chart, USA Compression Partners LP ranks #283 out of 867 companies in the Oil & Gas industry, placing it in the top 32.6%.
Is USA Compression Partners LP's Gross Margin % too high?
USA Compression Partners LP's current Gross Margin % of 38.10% is 15% above median its 10-year median of 33.26. The Oil & Gas industry median Gross Margin % is 25.70. USA Compression Partners LP's value of 38.10% is 48.2% above this industry median. Based on the distribution chart, USA Compression Partners LP ranks #283 out of 867 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, USA Compression Partners LP has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does USA Compression Partners LP's Gross Margin % compare to WHD and SEI?
According to the Oil & Gas industry distribution chart, USA Compression Partners LP ranks #283 out of 867 companies for Gross Margin %. This puts USA Compression Partners LP in the upper half of its industry. The industry median Gross Margin % is 25.70. USA Compression Partners LP's value of 38.10% is 48.2% above this benchmark. While the company's 10-year median is 33.26 vs. the industry median of 25.70, USA Compression Partners LP has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. USA Compression Partners LP's current Gross Margin % of 38.10% is 48.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on USA Compression Partners LP and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. USA Compression Partners LP's current Gross Margin % is 38.10%, which is 15% above median its own 10-year median of 33.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is USA Compression Partners LP stock overvalued right now?
Based on GuruFocus' analysis, USA Compression Partners LP (USAC) is currently considered Fairly Valued. The stock's GF Value™ is $25.62, compared to a current price of $24.81 — trading 3.2% below its estimated fair value. The current Gross Margin % is 38.10%, which is 15% above median its 10-year median of 33.26 and 48.2% above the Oil & Gas industry median of 25.70. USA Compression Partners LP's overall GF Score™ is 73/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For USA Compression Partners LP (USAC), the current Gross Margin % is 38.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is USA Compression Partners LP (USAC) Overvalued in 2026?
Based on GuruFocus' analysis, USA Compression Partners LP stock appears to be undervalued.
The current stock price of $24.81 is trading 3.2% below its estimated GF Value™ of $25.62.
GuruFocus considers USA Compression Partners LP to be Fairly Valued.
Key valuation signals for USAC:
Gross Margin %: 38.10% (15% above median its 10-year median of 33.26)
GF Value™: $25.62 vs. price of $24.81 (3.2% below fair value)
Industry Position: 48.2% above the Oil & Gas median (#283 of 867)
No single metric tells the full story. See the USAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
USA Compression Partners LP provides compression services in the United States in terms of total compression fleet horsepower to customers relating to infrastructure applications, including both allowing for the processing and transportation of natural gas through the domestic pipeline system and enhancing crude oil production through artificial lift processes. It engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. The company provides compression services throughout the U.S., including the Utica, Marcellus, Permian, Denver-Julesburg, Eagle Ford, Mississippi Lime, Granite Wash, Woodford, Barnett, and Haynesville.
73GF Score
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