United States Lime & Minerals Inc (NASDAQ: USLM)

Sector: Basic Materials Industry: Building Materials CIK: 0000082020
Market Cap 3.38 Bn
P/B 29.48
P/E 216.45
P/S 27.53
ROIC (Qtr) 20.33
Div Yield % 0.06
Rev 1y % (Qtr) 14.08
Total Debt (Qtr) 4.32 Mn
Debt/Equity (Qtr) 0.01
Add ratio to table...

About

United States Lime & Minerals, Inc. (USLM) is a company that operates in the lime and limestone industry, primarily serving the construction, industrial, metals, environmental, and agriculture sectors. The company was founded in 1950 and has its headquarters in Dallas, Texas. USLM's primary business activities are centered around the production and sale of lime and limestone products. These products are used in various applications such as construction aggregates, paper and glass manufacturing, steel production, environmental remediation, and agriculture....

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 158.01M provides robust 36.60x coverage of total debt 4.32M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 349.51M provide 212.73x coverage of short-term debt 1.64M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 652.80M provides 151.22x coverage of total debt 4.32M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 104.68M exceeds capital expenditure of 53.34M by 1.96x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 158.01M provides 6.95x coverage of SG&A expenses 22.73M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 158.01M barely covers its investment activities of (53.34M), with a coverage ratio of -2.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 158.01M provides thin coverage of dividend payments of (6.58M) with a -24 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 59.30M relative to inventory of 28.68M (2.07 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 158.01M is outpaced by equity issuance of (3.60M) (-43.88 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 652.80M provide limited backing for working capital of 417.14M, which is 1.56x, suggesting increased operational risk in market downturns.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Building Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CRH Crh Public Ltd Co 82.74 Bn 24.11 2.24 20.15 Bn
2 VMC Vulcan Materials CO 39.95 Bn 35.72 5.07 4.87 Bn
3 MLM Martin Marietta Materials Inc 30.94 Bn 212.27 13.41 5.90 Bn
4 JHX James Hardie Industries plc 11.15 Bn 93.63 2.53 4.86 Bn
5 EXP Eagle Materials Inc 7.43 Bn 17.29 3.23 1.80 Bn
6 KNF Knife River Corp 5.32 Bn 35.87 1.75 1.24 Bn
7 USLM United States Lime & Minerals Inc 3.38 Bn 216.45 27.53 0.00 Bn
8 TTAM Titan America SA 3.19 Bn 19.19 1.95 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.21 1.41
EV to Cash from Ops. EV/CFO 108.96 23.36
EV to Debt EV to Debt 787.82 58.70
EV to EBIT EV/EBIT 142.42 27.99
EV to EBITDA EV/EBITDA 91.75 17.60
EV to Free Cash Flow [EV/FCF] EV/FCF 143.57 29.87
EV to Market Cap EV to Market Cap 1.01 0.53
EV to Revenue EV/Rev 27.73 4.30
Price to Book Value [P/B] P/B 29.48 5.38
Price to Earnings [P/E] P/E 216.45 46.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 19.85 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 5.00 4.53
Dividend per Basic Share Div per Share (Qtr) 0.23 0.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 6.29 7.56
Interest Coverage Int. cover (Qtr) 0.00 14.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -80.00 -813.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 37.05 438.80
Dividend Growth (1y) % Div 1y % (Qtr) 21.05 -5.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 32.24 -73.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.56 -66.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 33.98 -59.38
EBT Growth (1y) % EBT 1y % (Qtr) 33.98 -52.02
EPS Growth (1y) % EPS 1y % (Qtr) 31.70 -67.29
FCF Growth (1y) % FCF 1y % (Qtr) 22.63 -5.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 32.95 12.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.56 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.03 0.03
Cash Ratio Cash Ratio (Qtr) 15.10 1.32
Current Ratio Curr Ratio (Qtr) 19.02 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.52
Interest Cover Ratio Int Coverage (Qtr) 0.00 14.54
Times Interest Earned Times Interest Earned (Qtr) 0.00 14.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 52.10 -43.04
EBIT Margin % EBIT Margin % (Qtr) 45.39 -72.64
EBT Margin % EBT Margin % (Qtr) 45.39 -77.34
Gross Margin % Gross Margin % (Qtr) 48.10 30.03
Net Profit Margin % Net Margin % (Qtr) 35.80 -82.01