United States Lime & Minerals (USLM) jumped 9.9% after the February ISM Manufacturing report highlighted rising input prices, which investors interpreted as potential pricing power and margin support for industrial suppliers.
See our latest analysis for United States Lime & Minerals.
That ISM driven jump comes on top of a 1 year total shareholder return of 30.39% and a very large 3 year total shareholder return of 294.55%, even though the year to date share price return is slightly negative and the recent 1 day pullback sits against a 30 day share price return of 8.20%. This suggests longer term momentum has been strong while very near term sentiment is more mixed.
If this move in a materials supplier has you thinking about other parts of the market, it could be a good moment to broaden your search and check out 20 top founder-led companies.
With USLM trading at US$117.45, sitting on a very large 3 year total return and a P/E of 32 alongside an indicated intrinsic discount of about 27%, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?
Price-to-Earnings of 25x: Is it justified?
On our numbers, United States Lime & Minerals looks inexpensive against close peers but richer than the wider basic materials space, which gives the current P/E of 25x an interesting middle ground.
The P/E ratio compares the share price with earnings per share, so at 25x investors are paying $25 for every $1 of current earnings. For a lime and limestone producer with established operations across construction, industrial, environmental and energy customers, that multiple reflects what the market is willing to pay for these earnings today.
Relative to similar companies, USLM is described as good value on a P/E of 25x versus a peer average of 57.4x, which is a large gap. At the same time, it screens as expensive against the Global Basic Materials industry average P/E of 14.8x. The stock therefore trades at a premium to the broader sector while still appearing cheaper than its closer peer set. This split suggests investors are assigning a higher price to USLM earnings than to the typical basic materials company, while still keeping the valuation below more expensive peers.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 25x (ABOUT RIGHT)
However, you still need to weigh risks such as a recent 90-day share price decline and exposure to cyclical construction and industrial demand that could challenge sentiment.
Find out about the key risks to this United States Lime & Minerals narrative.
Another view using our DCF model
The P/E of 25x paints one picture, but our DCF model points to a different one. With USLM at $117.45 and our future cash flow value estimate at $160.17, the shares are described as trading about 26.7% below fair value. So is the market underestimating those cash flows?
Look into how the SWS DCF model arrives at its fair value.
USLM Discounted Cash Flow as at Mar 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 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Next Steps
If this mix of valuation signals leaves you unsure, it is worth taking a closer look at the underlying data yourself and forming an independent view. Investors are already focusing on what the company does well, so check the key positives highlighted in our 3 key rewards.
Looking for more investment ideas?
If USLM has sharpened your curiosity, do not stop here. A few minutes with a focused screener can surface ideas you would otherwise never see.
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.
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