John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

U.S. Concrete Is Still Attractive Even After More Than Doubling This Year

Investment thesis

U.S. Concrete (NASDAQ:USCR) trades at the peer average multiple despite an exclusive focus on the strong U.S. market, a strong moat and one of the healthiest balance sheets in the industry.

Company overview

USCR is a domestic producer of ready-mixed concrete and aggregates (including crushed stone, sand and gravel).

In 2012, USCR sold its Arizona and California precast operations in order to focus on the ready-mixed concrete market while asset acquisitions strengthened its presence in the Dallas and San Francisco Bay area.

Improving macro outlook is primary catalyst

Domestic construction demand for ready-mixed concrete continues to be strong as evidenced by the fact that last year was the first time residential construction demand improved since the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details