United States Lime & Minerals (USLM) AI Stock Analysis

• Market Cap: $3.68B
• Dividend Yield: 0.19%
• Average Volume (3M): 77.96K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.47
• Revenue Growth: 20.27%
• EPS Growth: 31.94%
• Country: US
• Employees: 345
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.35
• Shares Outstanding: 28,639,399
• 10 Day Avg. Volume: 91,915
• 30 Day Avg. Volume: 77,957
• PEG Ratio: 0.76
• Price to Book (P/B): 7.63
• Price to Sales (P/S): 11.95
• P/FCF Ratio: 38.49
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 9.42
• Enterprise Value/Gross Profit: 19.57
• Enterprise Value/Ebitda: 18.68
• 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: 63 Neutral
• Price Target: $140.00 ▲(15.59% Upside)

United States Lime & Minerals has a strong financial foundation with high profitability and minimal leverage, which is a significant positive factor. However, the technical analysis indicates potential short-term bearish momentum, and the valuation suggests the stock may be overvalued, which are notable concerns. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong Financial Health

Minimal leverage indicates strong financial stability, allowing USLM to withstand economic fluctuations and invest in growth opportunities.

High Profitability

High profitability margins reflect efficient operations and pricing power, supporting long-term earnings potential and competitive positioning.

Diverse Revenue Streams

A diverse customer base across industries stabilizes revenue and reduces dependency on any single market, enhancing resilience and growth potential.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could limit the company's ability to fund new projects or return capital to shareholders if it persists.

Potential Cost Pressures

A decline in EBIT margin suggests rising costs or pricing pressures, which could impact profitability if not managed effectively.

Negative Sentiment from Stock Performance

While technical indicators suggest short-term challenges, persistent negative sentiment could affect investor confidence and capital raising efforts.

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 generates revenue primarily through the sale of lime and limestone products. The company's key revenue streams include the sale of quicklime, hydrated lime, and crushed limestone, which are used in a wide range of applications across various sectors. USLM also benefits from long-term contracts with major customers in industries such as construction and environmental remediation, ensuring a steady demand for its products. Additionally, the company may capitalize on sales through strategic partnerships with other firms in related industries, enhancing its market presence and distribution capabilities. The company's ability to maintain competitive pricing and optimize production processes further contributes to its profitability.

United States Lime & Minerals Financial Statement Overview

Summary

United States Lime & Minerals exhibits strong financial health with high profitability, minimal leverage, and robust cash flow generation. The company is well-positioned in the construction materials industry, with consistent revenue growth and efficient operations. While free cash flow growth has slightly declined, the overall financial position remains solid, supported by a strong balance sheet and effective equity utilization.

Income Statement

United States Lime & Minerals demonstrates strong profitability with a high net profit margin of 35.83% and a gross profit margin of 48.12% in TTM. Revenue growth is consistent at 3.57% in TTM, indicating steady expansion. The EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0079, indicating minimal leverage and strong financial stability. The return on equity is impressive at 25.29%, showcasing effective use of equity to generate profits. The equity ratio of 92.23% highlights a solid capital structure with significant equity backing.

Cash Flow

Operating cash flow is strong with a high coverage ratio of 8.15, indicating good cash generation relative to net income. However, free cash flow growth is slightly negative at -2.45% in TTM, which could be a concern if it persists. The free cash flow to net income ratio remains healthy at 70.67%, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	364.85M	317.72M	281.33M	236.15M	189.25M	160.70M
Gross Profit	175.57M	143.98M	102.87M	70.34M	59.26M	47.59M
EBITDA	183.90M	149.09M	109.25M	76.98M	67.31M	53.93M
Net Income	130.72M	108.84M	74.55M	45.43M	37.05M	28.22M
Balance Sheet
Total Assets	652.80M	543.16M	440.60M	367.77M	316.20M	279.90M
Cash, Cash Equivalents and Short-Term Investments	349.51M	278.03M	187.96M	133.38M	105.36M	83.56M
Total Debt	4.32M	5.04M	5.50M	5.54M	3.21M	2.22M
Total Liabilities	50.53M	45.42M	47.50M	46.68M	37.99M	36.70M
Stockholders Equity	602.27M	497.74M	393.10M	321.09M	278.21M	243.19M
Cash Flow
Free Cash Flow	104.18M	98.61M	58.01M	37.55M	25.77M	41.44M
Operating Cash Flow	158.01M	126.02M	92.26M	64.36M	55.69M	58.58M
Investing Cash Flow	-53.34M	-26.86M	-31.96M	-31.15M	-29.63M	-25.19M
Financing Cash Flow	-10.19M	-9.10M	-5.71M	-5.18M	-4.27M	-4.08M

United States Lime & Minerals Technical Analysis

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

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 below the 20-day moving average (MA) of 126.68, below the 50-day MA of 122.33, and above the 200-day MA of 112.82, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 63.16 is Neutral, neither overbought nor oversold. The STOCH value of 94.21 is Negative, 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
EXP	77 Outperform	$7.43B	17.11	30.10%	0.47%	1.50%	-4.44%
VMC	77 Outperform	$39.44B	35.48	13.56%	0.67%	6.54%	32.48%
TTAM	74 Outperform	$3.18B	17.56	―	0.94%	0.28%	-1.57%
MLM	73 Outperform	$38.40B	33.54	11.63%	0.51%	1.99%	-41.08%
USLM	63 Neutral	$3.68B	28.22	24.29%	0.19%	20.27%	31.94%
LOMA	63 Neutral	$1.44B	37.51	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%