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United States Lime & Minerals (USLM) has wrapped up FY 2025 with fourth quarter revenue of US$87.9 million, Basic EPS of US$1.07 and net income of US$30.5 million, against a backdrop of trailing twelve month revenue of US$372.7 million and Basic EPS of US$4.69. Over the past year, the company has seen revenue move from US$317.7 million to US$372.7 million, while Basic EPS has gone from US$3.81 to US$4.69. Earnings grew 23.4%, supported by a net profit margin of 36% that leaves profitability firmly in focus for investors watching this latest update.

With the numbers on the table, the next step is to see how this earnings profile lines up with the widely held narratives around USLM and where the recent results may challenge those views.

Curious how numbers become stories that shape markets? Explore Community Narratives

36% margin puts profitability in focus

• Over the last 12 months, USLM converted US$372.7 million of revenue into US$134.3 million of net income, which is a 36% net margin compared with 34.3% a year earlier.
• What stands out for the bullish view is that earnings grew 23.4% over the same period while revenue grew 9.4%, so
  • the higher margin directly supports the idea that the business is not just getting bigger, it is keeping a larger share of each sales dollar as profit,
  • yet the fact that 23.4% earnings growth is below the 5 year annualized 32.5% figure gives bulls a slower, more measured backdrop than the longer term track record.

Quarterly swing against a 23.4% earnings rise

• Within FY 2025, quarterly EPS moved from US$1.35 in Q3 to US$1.07 in Q4 while trailing 12 month EPS reached US$4.69 compared with US$3.81 a year earlier.
• Bears often focus on shorter term shifts, and here the Q3 to Q4 step down in revenue from US$102.0 million to US$87.9 million and net income from US$38.8 million to US$30.5 million gives them something to point to, yet
  • the same data set shows trailing 12 month net income rising from US$108.8 million to US$134.3 million, which challenges the idea that a softer quarter alone defines the trajectory,
  • and Basic EPS across the last four quarters, at US$1.19, US$1.08, US$1.35 and US$1.07, still adds up to that US$4.69 per share figure that anchors the trailing growth story.

P/E of 25.1x vs DCF fair value gap

• USLM trades at US$118.13 with a trailing P/E of 25.1x, above the cited peer average of 19.6x and the Global Basic Materials average of 15.2x. The DCF fair value in the data is US$98.46.
• Critics highlight that the share price sits above both peers and this DCF fair value, and the numbers leave that valuation question front and center, because
  • the gap between US$118.13 and the US$98.46 DCF fair value aligns with the risk summary that flags the stock as more expensive than its peer group on a P/E basis,
  • yet the same analysis pairs that with 23.4% trailing earnings growth and a 36% net margin, so investors weighing the bearish valuation angle also see strong trailing profitability in the mix.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on United States Lime & Minerals's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While USLM reports strong trailing earnings and margins, the Q4 pullback and a P/E of 25.1x against a lower DCF fair value highlight valuation pressure.

If that valuation stretch makes you cautious, check out these 868 undervalued stocks based on cash flows to focus on companies where price lines up more closely with underlying cash flows and earnings power right now.

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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