CSI Compressco Story

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CCLP -- USA Stock  

USD 0.86  0.03  3.61%

CSI Compressco LP is scheduled to announce its earnings today. The next earnings report is expected on the 4th of November 2020. CSI Compressco Asset Turnover is very stable at the moment as compared to the past year. CSI Compressco reported last year Asset Turnover of 0.57. As of 3rd of August 2020, Book Value per Share is likely to grow to 1.07, while Invested Capital is likely to drop about 1.2 B. As many of us are excited about energy space, it is fair to recap CSI Compressco LP as a unique alternative. We will analyze why CSI Compressco investors may still consider a stake in the business.
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Will CSI Compressco (NASDAQ:CCLP) continue to grow in September?
The company currently holds 679.6 M in liabilities. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CSI Compressco has an asset utilization ratio of 47.94 percent. This suggests that the company is making $0.48 for each dollar of assets. An increasing asset utilization means that CSI Compressco LP is more efficient with each dollar of assets it utilizes for everyday operations. About 29.0% of the company shares are held by institutions such as insurance companies. CSI Compressco LP has price-to-book (P/B) ratio of 1.22. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity recorded a loss per share of 0.46. The firm last dividend was issued on the 30th of July 2020.
CSI Compressco financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CSI Compressco, including all of CSI Compressco's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of CSI Compressco assets, the company is considered highly leveraged. Understanding the composition and structure of overall CSI Compressco debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring CSI Compressco on a daily bases if you are holding a position in it. CSI Compressco is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as CSI Compressco stock to be traded above the $1 level to remain listed. If CSI Compressco stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Understanding CSI Compressco Total Liabilities

CSI Compressco LP liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. CSI Compressco LP has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on CSI Compressco balance sheet include debt obligations and money owed to different CSI Compressco vendors, workers, and loan providers. Below is the chart of CSI Compressco short long-term liabilities accounts currently reported on its balance sheet.
You can use CSI Compressco LP financial leverage analysis tool to get a better grip on understanding its financial position

How important is CSI Compressco's Liquidity

CSI Compressco financial leverage refers to using borrowed capital as a funding source to finance CSI Compressco LP ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CSI Compressco financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between CSI Compressco's total debt and its cash.

Is CSI Compressco valued appropriately by the market?

CSI Compressco LP reported the previous year's revenue of 463.42 M. Net Loss for the year was (21.83 M) with profit before overhead, payroll, taxes, and interest of 159.08 M.

Asset Breakdown

648.2 M
Assets Non Current
Current Assets
Total Assets771.01 Million
Current Assets122.84 Million
Assets Non Current648.17 Million
Goodwill28.75 Million
Tax Assets24,631.58

Over 3 percent roll up for CSI Compressco. What does it mean for insiders?

CSI Compressco recent total risk alpha upswings over 0.46. CSI Compressco LP is displaying above-average volatility over the selected time horizon. Investors should scrutinize CSI Compressco LP independently to ensure intended market timing strategies are aligned with expectations about CSI Compressco volatility. CSI Compressco LP is a potential penny stock. Although CSI Compressco may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in CSI Compressco LP. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Take On CSI Compressco

Although some firms within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, CSI Compressco may offer a potential longer-term growth to insiders. To conclude, as of the 3rd of August 2020, our primary 30 days buy-hold-sell advice on the firm is Cautious Hold. We believe CSI Compressco is undervalued with below average chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of CSI Compressco LP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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