United States Lime & Minerals (USLM) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: 0.19%
• Average Volume (3M): 76.95K
• Price to Earnings (P/E): 24.5
• 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): 1.06
• Shares Outstanding: 28,639,399
• 10 Day Avg. Volume: 88,133
• 30 Day Avg. Volume: 76,954
• PEG Ratio: 1.11
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 9.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 7.30
• Enterprise Value/Gross Profit: 14.93
• Enterprise Value/Ebitda: 14.61
• 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: $139.00 ▲(14.76% 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

Very low leverage / strong balance sheet

Extremely low leverage and a 92% equity base materially reduce refinancing and solvency risk. This capital structure gives USLM durable financial flexibility to fund capex, absorb downturns, and pursue opportunities without heavy borrowing, supporting long-term stability and high ROE.

High and sustainable margins

Very strong gross and net margins reflect pricing power and operational efficiency in lime products. These margin levels provide a lasting buffer versus input cost swings, enabling consistent internal funding for maintenance, selective growth, and preserving profitability across business cycles.

Strong operating cash generation

Robust operating cash flow coverage and high FCF conversion demonstrate the business converts earnings into cash reliably. Durable cash generation supports reinvestment, modest shareholder returns, and liquidity for cyclical dips without dependence on external financing, enhancing resilience.

Negative Factors

Declining free cash flow growth

A negative FCF growth trend, even modest at -2.45% TTM, could become structural if sustained. Over months this can limit capacity to increase capex, dividends, or buybacks, force tougher capital allocation choices, and reduce the margin for error in a capital-light but cyclical materials business.

Emerging EBIT margin pressure

A falling EBIT margin signals rising costs or weaker pricing that, if persistent, will erode the company's high profitability. For a commodity-oriented producer, sustained margin compression reduces ROE and cash generation, impairing reinvestment ability and long-term return sustainability.

Cyclicality of end markets

Heavy exposure to construction and steel makes demand intrinsically cyclical. Even with long-term contracts, industry downturns can depress volumes, plant utilization and pricing for months, creating durable revenue and cash flow volatility that management must manage operationally and financially.

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	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	0.00	98.61M	58.01M	37.55M	25.77M
Operating Cash Flow	0.00	126.02M	92.26M	64.36M	55.69M
Investing Cash Flow	0.00	-26.86M	-31.96M	-31.15M	-29.63M
Financing Cash Flow	0.00	-9.10M	-5.71M	-5.18M	-4.27M

United States Lime & Minerals Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USLM, the sentiment is Negative. The current price of 121.12 is below the 20-day moving average (MA) of 125.49, below the 50-day MA of 124.71, and above the 200-day MA of 115.60, indicating a bearish trend. The MACD of -2.98 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 9.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USLM.

United States Lime & Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	77 Outperform	$41.16B	37.02	13.56%	0.67%	6.54%	32.48%
TTAM	74 Outperform	$3.41B	18.81	―	0.94%	0.28%	-1.57%
MLM	73 Outperform	$40.48B	35.36	11.63%	0.51%	1.99%	-41.08%
EXP	71 Outperform	$7.21B	17.37	28.77%	0.47%	1.50%	-4.44%
USLM	63 Neutral	$3.27B	24.47	23.80%	0.19%	20.27%	31.94%
LOMA	63 Neutral	$1.28B	34.21	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%