United States Lime & Minerals (USLM) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: 0.19%
• Average Volume (3M): 83.55K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.46
• 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: 61,122
• 30 Day Avg. Volume: 83,550
• 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: 1.00
• Enterprise Value/Revenue: 8.77
• Enterprise Value/Gross Profit: 17.93
• Enterprise Value/Ebitda: 17.55
• 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: $128.00 ▲(5.68% 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

Debt-free balance sheet

Effectively zero debt and a near-zero debt-to-equity profile materially reduce financial risk and provide durable optionality. This strength supports continued capex, opportunistic M&A, and capacity to withstand industry downturns without refinancing pressure, improving long-term resilience.

Sustained multi-year revenue expansion

Multi-year revenue growth more than doubled sales, reflecting durable market demand and successful commercial execution. Persistent expansion across years indicates strengthening market position and scale benefits that should support margin sustainability and longer-term cash generation.

Strong and scaling cash generation

Material growth in operating cash flow and FCF provides durable internal funding for reinvestment, maintenance capex, and shareholder returns. Consistent coverage of net income by operating cash (coverage ~4x–7x) supports earnings quality and long-term financial flexibility.

Negative Factors

Cyclicality risks to growth

A large portion of recent growth stems from a step-up year tied to construction end-markets, which are cyclical. This makes future revenue gains harder to predict and increases risk of near-term reversals if construction activity or large project demand moderates.

Free cash flow volatility

Intermittent FCF declines and a falling FCF-to-net-income ratio indicate working-capital swings or higher reinvestment needs. Persistent volatility can constrain predictable capital allocation, limit reliable dividend or buyback pacing, and complicate multi-quarter planning.

Low leverage limits return amplification

While conservative debt levels reduce risk, near-zero leverage also constrains the company's ability to amplify returns during favorable cycles. This structural conservatism may limit faster ROE expansion compared with peers that judiciously use leverage.

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

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	681.04M	543.16M	440.60M	367.77M	316.20M
Cash, Cash Equivalents and Short-Term Investments	0.00	278.03M	187.96M	133.38M	105.36M
Total Debt	0.00	5.04M	5.50M	5.54M	3.21M
Total Liabilities	50.28M	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: Neutral
• Last Price: 121.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 121.12 is above the 20-day moving average (MA) of 110.78, above the 50-day MA of 120.55, and above the 200-day MA of 116.53, indicating a neutral trend. The MACD of -2.60 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$3.27B	24.43	23.80%	0.19%	20.27%	31.94%
VMC	75 Outperform	$40.48B	38.21	12.99%	0.67%	6.54%	32.48%
TTAM	74 Outperform	$3.34B	18.45	―	0.94%	0.28%	-1.57%
MLM	72 Outperform	$40.81B	36.06	10.65%	0.51%	1.99%	-41.08%
EXP	70 Outperform	$7.03B	16.95	28.77%	0.47%	1.50%	-4.44%
LOMA	63 Neutral	$1.25B	33.02	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%