United States Lime & Minerals, Inc. (USLM) Fundamental Analysis: Bull vs. Bear Case

USLM

United States Lime & Minerals, Inc.

Fundamental data last updated:September 25, 2026

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company profile

SECTOR

Basic Materials

industry

Construction Materials

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

United States Lime & Minerals, Inc. manufactures and supplies lime and limestone products in the United States. It extracts limestone from open-pit quarries and an underground mine, and processes it as pulverized limestone, quicklime, hydrated lime, and lime slurry. The company supplies its products primarily to the construction customers, including highway, road, and building contractors; industrial customers, such as paper and glass manufacturers; environmental customers comprising municipal sanitation and water treatment facilities, and flue gas treatment processes; steel producers; oil and gas services companies; roof shingle manufacturers; and poultry and cattle feed producers. It also has various royalty interests and non-operating working interests with respect to oil and gas rights in natural gas wells located in Johnson County, Texas in the Barnett Shale Formation. The company was incorporated in 1950 and is headquartered in Dallas, Texas.

VALUATION

P/E

24.41 Market Cap ($M USD)

$3.19B

Forward P/E

17.67 PEG

0.46 PRICE TO SALES

8.64 PRICE TO BOOK

4.83 EV / EBITDA

16.27 5-Year Average P/E

Free Cash Flow Yield

2.86%

DCF Value

$136.33

Graham Number

$48.64

Price to FCF

34.92 EV to FCF

30.77 Earnings Yield

4.10%

FCF Yield

2.86%

DIVIDEND

Yield

0.22%

Annual Payout

$0.24

Payout Ratio

5.26%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.56

Next Year EPS Growth Estimate

$6.30

Next Year Revenue Growth Estimate

$573.00M

Return on Equity (ROE)

21.28%

FREE CASH FLOW

Operating Margin

41.63%

Debt-to-Equity

0.01 Piotroski F-Score

5 Altman Z-Score

39.05 Return on Invested Capital (ROIC)

22.25%

Current Ratio

20.73 Quick Ratio

20.73 Net Debt to EBITDA

-2.20

Interest Coverage

0.00 Gross Profit margin

48.13%

FCF PER SHARE

$3.19

REVENUE PER SHARE

$12.88

Gainseekers Quantitative Analysis

Summary

The market seems to be undervaluing United States Lime & Minerals, Inc. relative to its intrinsic worth. With a DCF value significantly higher than recent pricing, the stock appears to be trading at a discount. The Forward P/E of 17.46 suggests growth potential, while the robust Altman Z-score of 38.96 indicates financial stability. Despite an earnings yield of just 4.14%, the company’s high ROIC of 22.25% showcases efficient capital deployment. Overall, the valuation metrics suggest a compelling opportunity for investors seeking growth at a reasonable price.

AI Exposure / Tech Reliance

Operating in the construction materials sector, USLM is well-positioned to leverage AI and modern technology to optimize production processes and supply chain management. The industry's shift towards smart construction and sustainable materials could further enhance its competitive edge. However, the company's traditional focus may require strategic adaptation to fully capitalize on these technological advancements.

The Bull Case

For the discerning GARP investor, USLM offers a compelling narrative of efficiency and profitability. The impressive ROIC of 22.25% and operating margin of 41.63% highlight its strong pricing power and operational excellence. A Piotroski F-Score of 5 indicates moderate financial health, while the FCF yield, though modest, reflects consistent cash generation. These metrics collectively paint a picture of a company with robust capital efficiency and a solid foundation for future growth.

The Bear Case

Despite its strengths, USLM faces significant valuation challenges. The Price/Sales ratio of 8.54 and Price/Book of 4.77 suggest the stock is priced for perfection, leaving little room for error. The EV to EBITDA multiple of 16.06 further underscores its premium valuation. Additionally, the stock's proximity to its 52-week high raises concerns about potential overextension. Investors should be wary of these structural risks, which could limit upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$138.00

Institutional Ownership %

1-Year Beta

0.70 Insider Buying % (6 Mo)

Distance to 52-Week High

27.08%

Distance to 52-Week Low

15.53%

EARNINGS SURPRISE %

-11.67%

50-DAY SMA

$121.18

200-DAY SMA

$122.16

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.