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

As of 31 October 2025, the valuation grade for United States Lime & Minerals, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 26, which is higher than the peer average of 29.02, and an EV to EBITDA ratio of 17.44, which is also competitive compared to peers like Eagle Materials, Inc. with an EV to EBITDA of 11.88. Additionally, the company's ROCE stands impressively at 59.64%, suggesting strong operational efficiency.
In comparison to the S&P 500, United States Lime & Minerals, Inc. has underperformed in the short term, with a YTD return of -11.69% against the index's 16.30%, and a 3-year return of -7.08% compared to 76.66% for the S&P 500. This performance underscores the potential for the stock to be undervalued, especially given its strong financial metrics relative to peers.