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...

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