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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
21.7%
Sector: 3.3%
Dividend Analysis audit
GROWTH
0.17%
Trailing Yield
$0.17
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
5%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, UNITED STATES LIME & MINERALS INC (USLM) receives a "Hold" rating with a composite score of 47.1/100, ranked #853 out of 4446 stocks. Key factor scores: Quality 50/100, Value 57/100, Momentum 56/100. This is quantitative analysis only — not investment advice.
UNITED STATES LIME & MINERALS INC (USLM) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNITED STATES LIME & MINERALS INC Do?
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. UNITED STATES LIME & MINERALS INC (USLM) is classified as a mid-cap stock in the Materials sector, specifically within the Non-Metallic And Industrial Metal Mining industry. The company is led by CEO Timothy W. Byrne and employs approximately 340 people, headquartered in Dallas, Texas. With a market capitalization of $3.9B, USLM is one of the notable companies in the Materials sector.
UNITED STATES LIME & MINERALS INC (USLM) Stock Rating — Hold (April 2026)
As of April 2026, UNITED STATES LIME & MINERALS INC receives a Hold rating with a composite score of 47.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.USLM ranks #853 out of 4,446 stocks in our coverage universe. Within the Materials sector, UNITED STATES LIME & MINERALS INC ranks #51 of 284 stocks, placing it in the top quartile of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
USLM Stock Price and 52-Week Range
UNITED STATES LIME & MINERALS INC (USLM) currently trades at $136.82. The stock gained $0.58 (0.4%) in the most recent trading session. The 52-week high for USLM is $137.96, which means the stock is currently trading -0.8% from its annual peak. The 52-week low is $80.47, putting the stock 70.0% above its annual trough. Recent trading volume was 118K shares, suggesting relatively thin trading activity.
Is USLM Overvalued or Undervalued? — Valuation Analysis
UNITED STATES LIME & MINERALS INC (USLM) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 28.39x, compared to the Materials sector average of 26.50x — a premium of 7%. The price-to-book ratio stands at 6.17x, versus the sector average of 2.83x. The price-to-sales ratio is 10.40x, compared to 0.74x for the average Materials stock. On an enterprise value basis, USLM trades at 24.32x EV/EBITDA, versus 6.01x for the sector.
Overall, USLM's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
UNITED STATES LIME & MINERALS INC Profitability — ROE, Margins, and Quality Score
UNITED STATES LIME & MINERALS INC (USLM) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 21.7%, compared to the Materials sector average of 3.3%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 20.1% versus the sector average of 0.6%.
On a margin basis, UNITED STATES LIME & MINERALS INC reports gross margins of 48.9%, compared to 29.8% for the sector. The operating margin is 42.7% (sector: 6.0%). Net profit margin stands at 36.6%, versus 3.0% for the average Materials stock. Revenue growth is running at 33.3% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
USLM Debt, Balance Sheet, and Financial Health
UNITED STATES LIME & MINERALS INC has a debt-to-equity ratio of 0.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 19.27x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $350M.
USLM has a beta of 1.08, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for UNITED STATES LIME & MINERALS INC is 61/100, reflecting average volatility within the normal range for its sector.
UNITED STATES LIME & MINERALS INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNITED STATES LIME & MINERALS INC reported revenue of $374M and earnings per share (EPS) of $4.69. Net income for the quarter was $137M. Gross margin was 48.9%. Operating income came in at $160M.
In FY 2025, UNITED STATES LIME & MINERALS INC reported revenue of $373M and earnings per share (EPS) of $4.69. Net income for the quarter was $134M. Gross margin was 48.9%. Revenue grew 17.3% year-over-year compared to FY 2024. Operating income came in at $158M.
In Q3 2025, UNITED STATES LIME & MINERALS INC reported revenue of $102M and earnings per share (EPS) of $1.35. Net income for the quarter was $39M. Gross margin was 51.2%. Revenue grew 14.1% year-over-year compared to Q3 2024. Operating income came in at $46M.
In Q2 2025, UNITED STATES LIME & MINERALS INC reported revenue of $92M and earnings per share (EPS) of $1.08. Net income for the quarter was $31M. Gross margin was 45.8%. Revenue grew 19.6% year-over-year compared to Q2 2024. Operating income came in at $36M.
Over the past 8 quarters, UNITED STATES LIME & MINERALS INC has demonstrated a growth trajectory, with revenue expanding from $77M to $374M. Investors analyzing USLM stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
USLM Dividend Yield and Income Analysis
UNITED STATES LIME & MINERALS INC (USLM) currently pays a dividend yield of 0.2%. At this yield, a $10,000 investment in USLM stock would generate approximately $$17.00 in annual dividend income. This compares to the Materials sector average dividend yield of 0.5%, meaning USLM yields less than the typical sector peer. With a net margin of 36.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
USLM Momentum and Technical Analysis Profile
UNITED STATES LIME & MINERALS INC (USLM) has a momentum factor score of 56/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
USLM vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing USLM against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full USLM vs S&P 500 (SPY) comparison to assess how UNITED STATES LIME & MINERALS INC stacks up against the broader market across all factor dimensions.
USLM Next Earnings Date
No upcoming earnings date has been announced for UNITED STATES LIME & MINERALS INC (USLM) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy USLM? — Investment Thesis Summary
UNITED STATES LIME & MINERALS INC presents a balanced picture with arguments on both sides. Low volatility (stability score 61/100) reduces downside risk.
In summary, UNITED STATES LIME & MINERALS INC (USLM) earns a Hold rating with a composite score of 47.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on USLM stock.
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Institutional Research Dossier
UNITED STATES LIME & MINERALS INC (USLM) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
United States Lime & Minerals (USLM) currently holds a 'Hold' rating, reflecting a balanced assessment of its strong profitability and growth against a potentially rich valuation. The company's impressive margins and revenue growth significantly outpace the materials sector, suggesting a competitive advantage. However, the relatively high market capitalization compared to free cash flow warrants caution, justifying the neutral rating. The key takeaway is that while USLM demonstrates robust operational performance, investors should carefully consider its valuation in light of its future growth prospects and inherent cyclicality of the construction and industrial sectors it serves.
USLM's financial strength, characterized by zero debt and a substantial cash position, provides a buffer against economic downturns and allows for strategic investments. The company's high return on equity (ROE) further underscores its efficiency in generating profits from shareholder equity. Despite these positives, the 'Hold' rating acknowledges the potential for valuation contraction if growth slows or if macroeconomic conditions deteriorate. Investors should monitor the company's ability to sustain its high margins and revenue growth in the face of increasing competition and fluctuating demand from its diverse customer base.
Business Strategy & Overview
United States Lime & Minerals, Inc. operates within the non-metallic and industrial metal mining sector, focusing on the production and supply of lime and limestone products. The company extracts limestone from its own quarries and mines, processing it into various forms such as pulverized limestone, quicklime, hydrated lime, and lime slurry. These products are then sold to a diverse range of customers across multiple industries, including construction, industrial manufacturing, environmental services, steel production, and oil and gas. This diversification mitigates risk associated with reliance on any single sector.
USLM's strategic positioning involves maintaining a vertically integrated operation, controlling the entire process from raw material extraction to finished product delivery. This allows for greater control over costs and quality, contributing to its high gross margins. The company's geographic focus is primarily within the United States, which reduces exposure to international political and economic risks. Furthermore, the company benefits from its royalty interests and non-operating working interests in natural gas wells, providing a supplementary revenue stream.
The company's success hinges on its ability to efficiently manage its mining operations, maintain product quality, and adapt to changing customer demands. Its customer base includes highway, road, and building contractors, paper and glass manufacturers, municipal sanitation and water treatment facilities, steel producers, oil and gas services companies, roof shingle manufacturers, and poultry and cattle feed producers. This broad customer base provides some resilience against downturns in specific sectors.
Looking ahead, USLM's growth strategy likely involves expanding its production capacity, exploring new applications for its products, and potentially acquiring complementary businesses. The company's strong balance sheet, with substantial cash reserves and no debt, provides the financial flexibility to pursue these opportunities. However, the company must also navigate increasing environmental regulations and competition from other lime and limestone producers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
33.3%
Sector: 1.8%
+1802% VS SCTR
Economic Moat Analysis
United States Lime & Minerals possesses a narrow economic moat, primarily derived from cost advantages and, to a lesser extent, geographic advantages. The company's vertically integrated operations, from limestone extraction to processing and distribution, enable it to control costs more effectively than competitors who rely on external suppliers. This cost advantage is reflected in its significantly higher gross and operating margins compared to the materials sector average.
The geographic location of USLM's quarries and mines also contributes to its moat. Transportation costs for lime and limestone products can be substantial, giving USLM a competitive edge in serving customers located near its operations. While lime and limestone are relatively ubiquitous resources, the cost of transporting them over long distances creates a localized competitive advantage for producers with strategically located facilities.
However, the moat is considered narrow due to the relatively low switching costs for customers. While quality and reliability are important, customers can readily switch to alternative suppliers if they offer a lower price or better service. Furthermore, the lime and limestone industry is characterized by a large number of competitors, limiting USLM's pricing power.
The absence of strong brand recognition or proprietary technology further weakens the moat. Lime and limestone are commodity products, and customers typically make purchasing decisions based on price and availability rather than brand loyalty. While USLM has a long history and established reputation, this is not sufficient to create a wide economic moat.
The company's royalty interests in natural gas wells provide a small additional source of revenue, but this is not a core part of its business and does not significantly contribute to its economic moat. Overall, USLM's cost advantages and geographic advantages provide a narrow moat, but its lack of pricing power and low switching costs limit its ability to generate consistently high returns on capital over the long term.
Financial Health & Profitability
United States Lime & Minerals exhibits a strong financial health profile, characterized by robust revenue growth, high profitability margins, and a pristine balance sheet. The company's revenue has grown significantly in recent years, with a 33.3% increase compared to the sector average of 1.5%. This growth is evident in the quarterly financial history, with consistent revenue increases from FY2023 to FY2025. This indicates strong demand for its products and effective execution of its business strategy.
The company's profitability margins are exceptionally high compared to the materials sector. Its gross margin of 48.9%, operating margin of 42.7%, and net margin of 36.6% significantly exceed the sector averages of 30.2%, 6.0%, and 3.0%, respectively. These high margins demonstrate USLM's ability to efficiently manage its costs and generate substantial profits from its operations. The quarterly data shows a consistent trend of high gross and operating margins, indicating sustainable profitability.
USLM's balance sheet is exceptionally strong, with total cash of $349.51 million and zero debt. This provides the company with significant financial flexibility to pursue growth opportunities, make acquisitions, or return capital to shareholders. The current ratio of 19.27 indicates a very strong liquidity position, with ample current assets to cover its current liabilities. This financial strength provides a buffer against economic downturns and allows the company to invest in its future.
However, the company's free cash flow (FCF) of $2.55 million is relatively low compared to its market capitalization of $3.40 billion. This suggests that the company is not generating a significant amount of cash from its operations after accounting for capital expenditures. While the company's high profitability margins are encouraging, the low FCF warrants further investigation to understand the drivers of this discrepancy. It is possible that the company is investing heavily in capital expenditures to support its growth, which is temporarily suppressing its FCF.
The company's high return on equity (ROE) of 21.7% is another indicator of its strong financial performance. This demonstrates its ability to generate high returns on shareholder equity, which is a key driver of long-term value creation. Overall, USLM's financial health is robust, with strong revenue growth, high profitability margins, and a pristine balance sheet. However, the low FCF warrants further scrutiny to assess the sustainability of its financial performance.
Valuation Assessment
United States Lime & Minerals' valuation presents a mixed picture. While some metrics suggest a reasonable valuation, others indicate that the stock may be trading at a premium. The company's P/E ratio of 25.3x is slightly below the sector average of 26.1x, suggesting that the stock is not significantly overvalued compared to its peers. However, the P/E ratio is still relatively high compared to historical averages, indicating that investors are expecting continued growth from the company.
The company's EV/EBITDA ratio of 5.4x is slightly above the sector average of 5.2x, suggesting that the stock is fairly valued on an enterprise value basis. However, the EV/EBITDA ratio does not fully reflect the company's strong balance sheet, with its substantial cash reserves and zero debt. Taking this into account, the stock may be considered undervalued on an EV/EBITDA basis.
The company's free cash flow (FCF) yield is very low, given the FCF of $2.55M and a market cap of $3.40B. This suggests that the stock is expensive relative to its cash flow generation. Investors are paying a high price for each dollar of free cash flow that the company generates. This is a significant concern, as FCF is a key driver of long-term value creation.
Considering the company's strong revenue growth and high profitability margins, a premium valuation may be justified. However, the low FCF yield and relatively high P/E ratio warrant caution. Investors should carefully consider the company's future growth prospects and the sustainability of its high margins before investing in the stock. A slowdown in revenue growth or a decline in profitability margins could lead to a significant contraction in the stock's valuation.
Overall, the valuation assessment suggests that USLM is fairly valued to slightly overvalued. While the company's strong financial performance and growth prospects support a premium valuation, the low FCF yield and relatively high P/E ratio warrant caution. Investors should carefully weigh the risks and rewards before investing in the stock.
Risk & Uncertainty
Several risks and uncertainties could impact United States Lime & Minerals' future performance. One significant risk is the cyclicality of the construction and industrial sectors, which are major end markets for its products. Economic downturns can lead to reduced demand for lime and limestone, negatively impacting the company's revenue and profitability. A prolonged recession or a slowdown in infrastructure spending could significantly weaken the company's financial performance.
Another risk is increasing environmental regulations. The mining and processing of lime and limestone can have significant environmental impacts, including air and water pollution. Stricter environmental regulations could increase the company's operating costs and capital expenditures, reducing its profitability. The company may also face legal challenges or fines if it violates environmental regulations.
Competition from other lime and limestone producers is another risk. The lime and limestone industry is relatively fragmented, with a large number of competitors. Increased competition could lead to price wars and reduced margins, negatively impacting the company's profitability. The company must effectively differentiate its products and services to maintain its competitive advantage.
The company's reliance on a few key customers could also pose a risk. If one or more of these customers were to reduce their purchases or switch to a competitor, it could significantly impact the company's revenue. The company needs to diversify its customer base to reduce this risk.
Finally, fluctuations in energy prices could impact the company's operating costs. The mining and processing of lime and limestone are energy-intensive processes. Increases in energy prices could increase the company's operating costs and reduce its profitability. The company may need to implement energy-efficient technologies to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWUSLM's superior margins and revenue growth compared to the sector justify a premium valuation, as the company is clearly executing at a higher level than its peers.
BULL VIEWThe company's debt-free balance sheet and substantial cash position provide significant financial flexibility to pursue acquisitions and expand its operations, driving future growth.
BULL VIEWDemand for lime and limestone will remain strong due to ongoing infrastructure projects and increasing environmental regulations requiring flue gas treatment, benefiting USLM's bottom line.
The Bear Case
BEAR VIEWUSLM's low free cash flow generation relative to its market capitalization suggests the company is overvalued, and future growth may not justify the current price.
BEAR VIEWThe cyclical nature of the construction and industrial sectors poses a significant risk to USLM's revenue and profitability, making it vulnerable to economic downturns.
BEAR VIEWIncreasing environmental regulations could significantly increase USLM's operating costs, eroding its profitability and competitive advantage.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score USLM and 4,400+ other equities.
UNITED STATES LIME & MINERALS INC exhibits a 434% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
20.1%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
48.9%
Sector: 29.8%
Operating Margin
Core business profitability
42.7%
Sector: 6.0%
Net Margin
Bottom-line profitability
36.6%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.49%
Yield Delta-65%
Income Projection audit
A $10,000 investment would generate approximately $17 annually in dividends at the current trailing rate.
Record Results and Strong Demand Might Change The Case For Investing In United States Lime & Minerals (USLM)
United States Lime & Minerals recently reported record fourth-quarter results, with revenue growth driven by higher sales volumes and stronger pricing across its lime and limestone products.
The company’s ability to meet rising demand from construction and steel customers despite aging machinery and weather-related disruptions underscores the resilience of its operations and the rationale for capacity expansion efforts.
We’ll now examine how this combination of record results and demand from...
