United States Lime & Minerals Inc. Common Stock (USLM)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $69 million in annual free cash flow (1.8% yield on market cap)
• High return on equity of 23.8% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Altman Z-Score of 47.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($48) with negative 172% margin of safety—limited downside protection
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

United States Lime & Minerals Inc. Common Stock is a small-cap basic materials company valued at $3.7 billion. Revenue stands at $373 million. From a quality standpoint, United shows Altman Z-Score of 47.1 confirms fortress-level solvency and strong 24% ROE. On valuation, the stock is trading at a premium 28.3x earnings, with trades far above its Graham Number ($48) with no margin of safety. Growth dynamics show revenue growing at 9.8% and profit growth of 13.2%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $69 million in annual free cash flow (1.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the basic materials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer