Why United States Lime & Minerals is Back on Investors’ Radar
United States Lime & Minerals (USLM) has drawn fresh attention after reporting fourth quarter and full year 2025 results, along with a new quarterly dividend declaration that highlights its current earnings power and cash returns policy.
See our latest analysis for United States Lime & Minerals.
The earnings release and dividend news follow a period of weaker share price performance, with a 30 day share price return showing a decline of 16.78% and a year to date share price return showing a decline of 10.26%. However, longer term total shareholder returns of 250.86% over three years and 301.43% over five years highlight how strong the stock has been for patient holders.
If this update has you considering where else operational strength might appear, it could be worth checking out 22 top founder-led companies as a fresh source of ideas beyond this one stock.
With earnings and sales up year on year and the share price slipping in recent weeks, the key question now is whether United States Lime & Minerals is trading below its worth or if the market is already pricing in future growth.
Preferred Price-to-Earnings of 23.1x: Is it justified?
United States Lime & Minerals currently trades on a P/E of 23.1x, with the last close at $108.55. This puts it at a richer earnings multiple than many peers but slightly below the wider Basic Materials industry average of 24x.
The P/E ratio links what you pay today to the company’s current earnings. For a business like USLM it gives a quick sense of how the market is weighing its profit quality, growth record, and cyclicality in the materials sector.
USLM has a few ingredients that often support a higher multiple, including earnings growth of 23.4% over the past year, high quality earnings, a 21.3% return on equity, and profit margins at 36% that are higher than last year. At the same time, its recent earnings growth is below the 5 year average of 32.5% per year and revenue is forecast to grow at 9.4% per year, which is slower than both the US market at 10.2% per year and the 20% threshold often associated with higher growth profiles.
Compared with the Global Basic Materials industry average P/E of 15.5x and a peer average of 20.7x, USLM is priced at a premium. This suggests the market is assigning extra value to its profitability and returns on equity, even though our DCF model estimates the future cash flow value at $101.52, below the current share price.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 23.1x (OVERVALUED)
However, recent share price declines and any change in demand from construction or industrial customers could quickly challenge the current premium P/E and sentiment around USLM.
Find out about the key risks to this United States Lime & Minerals narrative.
Another View: Cash Flows Point to a Different Story
While the current P/E of 23.1x flags United States Lime & Minerals as expensive against global and peer averages, our DCF model tells a slightly different story. It estimates future cash flow value at $101.52 per share versus a market price of $108.55, suggesting the stock may be modestly overvalued. So which signal should carry more weight for you right now?
Look into how the SWS DCF model arrives at its fair value.
USLM Discounted Cash Flow as at Feb 2026
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out United States Lime & Minerals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Build Your Own United States Lime & Minerals Narrative
If this view does not fully line up with your own thinking, or you would rather test the assumptions yourself, you can build a custom narrative in just a few minutes using Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding United States Lime & Minerals.
Looking for more investment ideas?
If you are serious about sharpening your portfolio, do not stop with a single company. Use the Simply Wall St screener to quickly surface fresh, data driven ideas.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com