UNITED STATES LIME & MINERALS INC (USLM) - Comprehensive Stock Analysis & Investment Research
Deep dive into UNITED STATES LIME & MINERALS INC's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
UNITED STATES LIME & MINERALS INC Investment Summary
When evaluating whether UNITED STATES LIME & MINERALS INC (USLM) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
UNITED STATES LIME & MINERALS INC (USLM) operates within the Energy & Transportation sector, specifically in the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company employs approximately 16 people. With a market capitalization of $4 billion, the company is a mid-cap stock that typically offers a balance between growth potential and established business operations.
Financial Performance Analysis
UNITED STATES LIME & MINERALS INC generates annual revenues of approximately $364 million. The company demonstrates exceptional profitability with a net margin of 205.3%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company reports a Return on Equity (ROE) of 14.4%, which is acceptable for its industry. The Return on Assets (ROA) stands at 12.7%, indicating efficient asset utilization. The gross margin of 18.7% suggests a competitive or commodity-driven business model.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 13.97x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.01x reflects a conservative capital structure with low leverage.
Cash Flow Generation
UNITED STATES LIME & MINERALS INC generates $21 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $52 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by 24.6%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 28.0x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 6.07x, reflecting significant intangible value and market expectations of future growth. For income-focused investors, the current dividend yield of 0.42% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether UNITED STATES LIME & MINERALS INC is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a mid-cap stock, UNITED STATES LIME & MINERALS INC may offer a balance of growth potential and established business fundamentals.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
UNITED STATES LIME & MINERALS INC (Stock Symbol: USLM) is a prominent company operating within the Energy & Transportation sector, with a specific focus on the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 16 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $4 billion, UNITED STATES LIME & MINERALS INC is classified as a mid-cap stock. Mid-cap companies often represent businesses in a growth phase, having moved beyond the early startup stage but still possessing significant expansion potential. These stocks can offer an attractive balance between the growth potential of smaller companies and the stability of larger corporations.
Sector & Industry Context
Operating within the Energy & Transportation sector, UNITED STATES LIME & MINERALS INC is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
UNITED STATES LIME & MINERALS INC generates annual revenues of $364 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 205.3% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Gross profit margin stands at 18.7%, a thin margin characteristic of commodity-like businesses, high-volume/low-margin retailers, or intensely competitive markets.
Operating margin is 15.3%, showing solid operational efficiency with balanced investment in sales, marketing, research, and administrative functions.
Market Valuation
Current market capitalization stands at $4 billion . This mid-cap classification represents companies that have proven their business models but still have significant growth runway. Mid-caps often offer an attractive blend of growth potential and established operations.
Return on Investment Metrics
Return on Equity (ROE) measures 14.4%, indicating adequate returns for shareholders, roughly in line with broader market averages. This represents acceptable but not exceptional capital efficiency.
Return on Assets (ROA) stands at 12.7%, demonstrating solid efficiency in utilizing company assets to generate earnings.
Return on Invested Capital (ROIC) measures 14.3%, demonstrating the company creates meaningful value by earning returns well above its cost of capital.
Cash Flow Generation
Free cash flow generation of $21 million annually indicates positive cash generation, though at a modest level that may limit flexibility for major investments or returns to shareholders.
Operating cash flow reaches $52 million , with year-over-year growth of 24.6%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
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Strategic Market Position
UNITED STATES LIME & MINERALS INC strategically competes in the highly dynamic Mining & Quarrying of Nonmetallic Minerals (No Fuels) marketplace. As a mid-cap company, it occupies an attractive position balancing growth potential with established operations. Mid-caps often represent the 'sweet spot' for investors seeking companies that have proven their business models but still have meaningful runway for expansion. These companies are large enough to have competitive advantages but nimble enough to adapt quickly to market changes.
Industry Competitive Landscape
UNITED STATES LIME & MINERALS INC competes within the Energy & Transportation sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $21 million annually , with year-over-year cash flow growth of 24.6%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 18.7% gross margin characteristic of commodity-like businesses or high-volume, low-margin operators. Thin gross margins require exceptional operational efficiency and volume to generate meaningful profits. Companies at this margin level are particularly sensitive to cost increases or pricing pressures.
Operating margin of 15.3% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 0.65x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 13.97 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.