UNITED STATES LIME & MINERAL (NASDAQ:USLM) – A CANSLIM candidate with strong fundamentals

UNITED STATES LIME & MINERAL (NASDAQ:USLM) was identified as a potential CANSLIM candidate through our screening process. The company demonstrates strong earnings growth, high profitability, and solid financial health, making it an interesting prospect for growth-focused investors. Below, we examine how USLM aligns with the CANSLIM criteria.

Key CANSLIM criteria met by USLM

• C – Current Earnings & Sales Growth:

  • Quarterly EPS growth of 52.28% (vs. same quarter last year)
  • Quarterly revenue growth of 27.29%
  • Both figures exceed the CANSLIM minimum thresholds of 20% for EPS and 25% for sales.

• A – Annual Earnings Growth:

  • Three-year EPS growth rate of 42.54%, well above the 25% benchmark.
  • Return on Equity (ROE) of 22.64%, indicating efficient use of shareholder capital.

• N – New Highs & Innovation:

  • While not at a 52-week high, USLM has shown strong momentum in recent years.
  • The company operates in a stable industry but benefits from consistent demand for lime and limestone products.

• S – Supply & Demand:

  • No debt (Debt/Equity of 0), a rare and positive financial trait.
  • Institutional ownership stands at 27.82%, leaving room for increased sponsorship.

• L – Market Leadership:

  • Relative Strength of 88.38, meaning it outperforms nearly 90% of the market.

• I – Institutional Sponsorship:

  • Moderate institutional ownership suggests potential for further accumulation.

• M – Market Direction:

  • The S&P 500 remains in a positive trend, supporting a favorable environment for growth stocks.

Technical & Fundamental Overview

• Fundamental Strength: USLM scores 8/10 in our fundamental analysis, with high marks for profitability and financial health. Margins are industry-leading, and the company has no debt.
• Technical Performance: The stock scores 7/10 technically, with strong relative performance but recent volatility. Key support levels exist near $100 and $92.

For a deeper look, review the full fundamental report and technical analysis.

Our CANSLIM High Growth screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own research before making investment decisions.