ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. USA Compression Partners LP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.82%.
As of today (2026-06-24), USA Compression Partners LP's WACC % is 5.46%. USA Compression Partners LP's ROIC % is 11.50% (calculated using TTM income statement data).
USA Compression Partners LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
USA Compression Partners LP (NYSE:USAC) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, USA Compression Partners LP's WACC % is 5.46%. USA Compression Partners LP's ROIC % is 11.50% (calculated using TTM income statement data).
USA Compression Partners LP generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
USA Compression Partners LP ROIC % Related Terms
USA Compression Partners LP ROIC % 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 ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, USA Compression Partners LP's ROIC % distribution charts can be found below:
* The bar in red indicates where USA Compression Partners LP's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
USA Compression Partners LP (USAC) has a ROIC % of 10.82% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on USA Compression Partners LP and its competitors.
Is USA Compression Partners LP's ROIC % too high?
USA Compression Partners LP's current ROIC % is 10.82%. The Oil & Gas industry median ROIC % is 3.63. USA Compression Partners LP's value of 10.82% is 198.5% above this industry median. 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 ROIC % compare to WHD and SEI?
USA Compression Partners LP's ROIC % of 10.82% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. USA Compression Partners LP's value of 10.82% is 198.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. USA Compression Partners LP's current ROIC % of 10.82% is 198.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on USA Compression Partners LP and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. USA Compression Partners LP's current ROIC % is 10.82%. 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 $25.60, compared to a current price of $24.81 — trading 3.1% below its estimated fair value. The current ROIC % is 10.82% and 198.5% above the Oil & Gas industry median of 3.63. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For USA Compression Partners LP (USAC), the current ROIC % is 10.82% 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 3.1% below its estimated GF Value™ of $25.60.
GuruFocus considers USA Compression Partners LP to be Fairly Valued.
Key valuation signals for USAC:
ROIC %: 10.82%
GF Value™: $25.60 vs. price of $24.81 (3.1% below fair value)
Industry Position: 198.5% above the Oil & Gas median
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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