US Lime & MineralsHawkins

US Lime & Minerals vs Hawkins

This page compares US Lime & Minerals and Hawkins Inc, examining their business models, financial performance, and market context in a clear, neutral manner. It highlights strategic differences, opera...

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Investment Analysis

Pros

  • United States Lime & Minerals has a strong market position as a leading manufacturer and supplier of lime and limestone products in diverse industries.
  • The company reported strong second-quarter results with higher sales volumes and increased average selling prices, indicating robust operational performance.
  • Its products serve a wide range of sectors including construction, industrial, environmental, metals, oil and gas, and agriculture, providing diversified demand sources.

Considerations

  • The stock trades at a relatively high P/E ratio close to 30, which may imply valuation risk if growth slows.
  • The dividend yield is very low at 0.18%, offering limited income appeal for dividend-focused investors.
  • The company operates in cyclical heavy materials markets that are sensitive to economic and commodity price fluctuations.

Pros

  • Hawkins, Inc. reported record second-quarter fiscal 2026 revenue growth of 14% year-over-year and record adjusted EBITDA, highlighting strong earnings momentum.
  • The company operates in three segments including water treatment, which showed sales growth of 21%, reflecting a high-margin growth driver.
  • Hawkins has a history of steady revenue growth and modest leverage, with a trailing 12-month adjusted EBITDA over $178 million and manageable debt levels.

Considerations

  • Hawkins has a relatively high forward P/E ratio near 38, suggesting the stock price may already factor in significant growth expectations.
  • EPS declined 7% in the latest quarter due primarily to increased amortization and interest expenses from recent acquisitions.
  • The company’s exposure to industrial chemicals and specialty ingredients markets can be subject to regulatory risks and commodity cost pressures.

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