United States Lime & Minerals (USLM) AI Stock Analysis

• Market Cap: $3.43B
• Dividend Yield: 0.19%
• Average Volume (3M): 101.93K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.44
• Revenue Growth: 20.27%
• EPS Growth: 31.94%
• Country: US
• Employees: 345
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.06
• Shares Outstanding: 28,670,055
• 10 Day Avg. Volume: 118,495
• 30 Day Avg. Volume: 101,927
• PEG Ratio: 1.11
• Price to Book (P/B): 5.44
• Price to Sales (P/S): 9.20
• P/FCF Ratio: 33.53
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 16.80
• Enterprise Value/Ebitda: 16.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.84
• Revenue Forecast (FY): $414.00M

• Rating: 75 Outperform
• Price Target: $143.00 ▲(18.06% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

The score is driven primarily by excellent financial performance (strong growth, very high margins, and a near debt-free balance sheet), partially offset by a weaker technical trend (below key longer-term moving averages and negative MACD) and a valuation that looks only moderate given the P/E and low dividend yield.

Positive Factors

Revenue Growth

Sustained multi-year revenue growth (from $161M to $373M) indicates expanding market share and stronger customer adoption across industrial, environmental and construction end markets. That scale enhances pricing leverage, plant utilization and supports a more durable revenue base beyond short-term cycles.

High and Improving Margins

Material margin expansion to ~49% gross and ~36% net reflects sustainable pricing power, product mix benefits and operating leverage in quarrying/processing. Elevated margins support long-term cash generation and resilience to moderate volume slowdowns in cyclical end markets.

Near-Zero Leverage & Strong ROE

An exceptionally conservative balance sheet with effectively no debt and strong ROE (≈19–22%) provides significant financial flexibility and low solvency risk. This durability reduces default risk, supports capital allocation optionality and preserves ability to invest or return capital through cycles.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow and a decline in FCF coverage (62% of net income in 2025) point to uneven cash conversion driven by capex or working-capital swings. That reduces predictability for dividends, buybacks or opportunistic investments and can constrain strategic flexibility in weak periods.

Cyclicality & Step-Up Year Reliance

Revenue strength appears to hinge on a step-up year in 2025 and exposure to cyclical end-markets (steel, construction, water treatment). Such cyclicality increases medium-term uncertainty because strong single-year gains are harder to replicate and make forecasting and capacity planning more difficult.

Conservative Capital Structure Limits Upside

While near-zero debt reduces risk, the absence of modest financial leverage can cap return amplification during favorable cycles. That conservative stance may leave potential ROE upside and capital-deployment efficiency underexploited when attractive growth or M&A opportunities arise.

United States Lime & Minerals Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

USLM primarily makes money by selling lime and limestone products that it produces from its quarries and processing plants. Its core revenue stream is product sales: (1) Lime products (including quicklime and hydrated lime, and related lime-based products) sold to industrial and environmental customers, where lime is used as a chemical reagent in processes such as steelmaking/metal refining, water and wastewater treatment (pH control and impurities removal), and air-pollution control (e.g., flue-gas treatment). (2) Limestone products (including crushed limestone/aggregates and related stone products) sold largely into construction and infrastructure uses as well as industrial applications. Revenue is typically driven by contracted and spot sales volumes and realized pricing, which can vary by end-market demand (e.g., industrial production levels, municipal water treatment needs, construction activity) and by product mix (lime vs. limestone and specific grades). Additional earnings drivers can include freight and logistics arrangements (when the company delivers product or sells on delivered terms), plant utilization/operating efficiency, and access to reserves and production capacity that support long-term supply relationships. Specific significant partnerships or customer concentration details are null.

United States Lime & Minerals Financial Statement Overview

Summary

Financial statements are very strong overall: rapid multi-year revenue expansion and standout profitability with materially higher gross and net margins. The balance sheet is exceptionally conservative with effectively no debt and strong ROE, reducing financial risk. Cash generation is solid and growing, but free cash flow has shown some volatility and weaker coverage versus net income in 2025 versus 2024.

Income Statement

Revenue has expanded strongly from $161M (2020) to $373M (2025), with 2025 revenue growth accelerating versus 2024. Profitability is a standout: gross margin improved to ~49% in 2025 (from ~30% in 2020) and net margin rose to ~36% (from ~18%), indicating meaningful pricing/operating leverage and cost control. The main watch-out is that growth appears increasingly reliant on a step-up year in 2025, which can be harder to repeat in cyclical construction materials.

Balance Sheet

The balance sheet is exceptionally conservative, with effectively no debt (total debt falls to $0 in 2025 after being minimal in prior years) and a near-zero debt-to-equity profile throughout the period. Equity and assets have compounded significantly (equity rising from $243M in 2020 to $631M in 2025), while returns on equity remain strong (~19%–22% in 2023–2025), reflecting efficient capital use without financial leverage. A potential downside is that the very low leverage can modestly limit return enhancement during peak cycles, but it materially reduces financial risk.

Cash Flow

Cash generation is solid and scaling: operating cash flow increased to $165M in 2025 (from $59M in 2020) and free cash flow reached $102M in 2025. Operating cash flow is consistently well above net income (coverage ~4x–7x), supporting earnings quality. The key weakness is volatility in free cash flow growth (down in 2021 and again in 2025), and free cash flow covers a lower share of net income in 2025 (~62%) than in 2024 (~78%), suggesting higher reinvestment/capex needs or working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	372.73M	317.72M	281.33M	236.15M	189.25M
Gross Profit	182.40M	143.98M	102.87M	70.34M	59.26M
EBITDA	171.02M	149.09M	109.25M	76.98M	67.31M
Net Income	134.28M	108.84M	74.55M	45.43M	37.05M
Balance Sheet
Total Assets	682.55M	543.16M	440.60M	367.77M	316.20M
Cash, Cash Equivalents and Short-Term Investments	371.12M	278.03M	187.96M	133.38M	105.36M
Total Debt	4.01M	5.04M	5.50M	5.54M	3.21M
Total Liabilities	51.79M	45.42M	47.50M	46.68M	37.99M
Stockholders Equity	630.76M	497.74M	393.10M	321.09M	278.21M
Cash Flow
Free Cash Flow	102.27M	98.61M	58.01M	37.55M	25.77M
Operating Cash Flow	164.97M	126.02M	92.26M	64.36M	55.69M
Investing Cash Flow	-62.48M	-26.86M	-31.96M	-31.15M	-29.63M
Financing Cash Flow	-9.39M	-9.10M	-5.71M	-5.18M	-4.27M

United States Lime & Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 121.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USLM, the sentiment is Positive. The current price of 121.12 is above the 20-day moving average (MA) of 117.69, above the 50-day MA of 119.45, and above the 200-day MA of 117.69, indicating a bullish trend. The MACD of 1.46 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USLM.

United States Lime & Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	75 Outperform	$3.43B	28.06	23.07%	0.19%	20.27%	31.94%
VMC	75 Outperform	$33.67B	34.81	12.79%	0.67%	6.54%	32.48%
MLM	72 Outperform	$34.25B	33.02	11.90%	0.51%	1.99%	-41.08%
EXP	70 Outperform	$5.77B	16.19	28.78%	0.47%	1.50%	-4.44%
TTAM	69 Neutral	$2.76B	16.29	―	0.94%	0.28%	-1.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LOMA	49 Neutral	$1.25B	79.74	5.06%	―	-33.99%	-61.41%