Is United States Lime & Minerals, Inc. overvalued or undervalued?

As of 31 January 2025, the valuation grade for United States Lime & Minerals, Inc. has moved from fair to attractive, indicating a more favorable assessment of the company's value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 26, an EV to EBITDA of 17.44, and a remarkable ROCE of 59.64%.
In comparison to its peers, United States Lime & Minerals, Inc. has a lower P/E ratio than Knife River Corp., which stands at 25.23, and is significantly more attractive than Atlas Energy Solutions, Inc., which has a P/E of 85.15. This suggests that despite its strong performance, the market may not fully recognize the company's potential relative to its peers. Additionally, while the company has experienced a decline in stock performance year-to-date, its one-year return of 37.77% significantly outpaces the S&P 500's 10.26% return, reinforcing the notion that it may be undervalued.