About UNITED STATES LIME & MINERALS INC
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.
USLM operates in the Mining | Non-Metallic And Industrial Metal Mining | headquartered in Dallas, Texas | approximately 340 employees | led by CEO Timothy W. Byrne.
The $3.8B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. UNITED STATES LIME & MINERALS INC is one such company.
At $3.8B in market capitalization, UNITED STATES LIME & MINERALS INC (USLM) currently ranks #252 in our quantitative model, with a composite score of 75.6/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives USLM the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 92/100 | 30% | Exceptional |
| Value | 79/100 | 15% | Fair |
| Momentum | 38/100 | 25% | Slowing |
| Investment | 75/100 | 10% | Growing |
| Stability | 66/100 | 10% | Solid |
| Short Interest | 11/100 | 10% | High shorts |
The quality score of 92/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 24.5%
- Net Margin: 38.0%
- Gross Margin: 51.2%
These aren't just good numbers. They're the kind of numbers that make USLM a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like USLM."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. USLM is quality defined.
- Momentum is real. With a momentum score of 38/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 28.8x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
UNITED STATES LIME & MINERALS INC is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, USLM is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 75.6/100 | Rank: #252 of 3,571 stocks
Sector: Materials
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.