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United States Lime & Minerals, Inc. (USLM)

Company Dividend Discount ModelIndustry: Construction MaterialsSector: Basic Materials

Valuation Snapshot

Stable Growth$106.76 - $283.21$163.25
Multi-Stage$71.44 - $78.14$74.73
Blended Fair Value$118.99
Current Price$131.55
Upside-9.55%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.53%7.44%0.200.160.160.130.130.110.110.100.100.10
YoY Growth--25.52%0.40%25.30%0.47%18.88%0.29%0.30%8.30%-0.57%0.29%
Dividend Yield--0.23%0.27%0.52%0.54%0.47%0.71%0.68%0.72%0.61%0.81%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)130.72
(-) Cash Dividends Paid (M)6.58
(=) Cash Retained (M)124.13
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.1416.349.80
Cash Retained (M)124.13124.13124.13
(-) Cash Required (M)-26.14-16.34-9.80
(=) Excess Retained (M)97.99107.79114.33
(/) Shares Outstanding (M)28.7228.7228.72
(=) Excess Retained per Share3.413.753.98
LTM Dividend per Share0.230.230.23
(+) Excess Retained per Share3.413.753.98
(=) Adjusted Dividend3.643.984.21
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$106.76$163.25$283.21
Upside / Downside-18.84%24.10%115.28%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)130.72139.21148.26157.90168.16179.09184.47
Payout Ratio5.04%22.03%39.02%56.01%73.01%90.00%92.50%
Projected Dividends (M)6.5830.6757.8588.45122.77161.18170.63

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)27.8528.1128.37
Year 2 PV (M)47.7048.6149.52
Year 3 PV (M)66.2168.1170.05
Year 4 PV (M)83.4586.6689.96
Year 5 PV (M)99.48104.29109.28
PV of Terminal Value (M)1,727.031,810.441,897.05
Equity Value (M)2,051.722,146.222,244.24
Shares Outstanding (M)28.7228.7228.72
Fair Value$71.44$74.73$78.14
Upside / Downside-45.70%-43.20%-40.60%

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