LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LPX - US5463471053 - Common Stock
91.25 USD
-1.36 (-1.47%)
91.25 USD
0 (0%)
LPX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. LPX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LPX has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- LPX had positive earnings in the past year.
- In the past year LPX had a positive cash flow from operations.
- In the past 5 years LPX has always been profitable.
- Each year in the past 5 years LPX had a positive operating cash flow.
1.2 Ratios
- LPX has a Return On Assets of 8.15%. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
- LPX's Return On Equity of 12.42% is fine compared to the rest of the industry. LPX outperforms 66.67% of its industry peers.
- LPX has a Return On Invested Capital of 10.37%. This is amongst the best in the industry. LPX outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LPX is significantly above the industry average of 5.94%.
- The last Return On Invested Capital (10.37%) for LPX is well below the 3 year average (24.24%), which needs to be investigated, but indicates that LPX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.42% | ||
| ROIC | 10.37% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.24%
ROIC(5y)33.4%
1.3 Margins
- With a decent Profit Margin value of 7.65%, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- In the last couple of years the Profit Margin of LPX has declined.
- The Operating Margin of LPX (11.98%) is better than 88.89% of its industry peers.
- In the last couple of years the Operating Margin of LPX has grown nicely.
- Looking at the Gross Margin, with a value of 23.60%, LPX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- LPX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.98% | ||
| PM (TTM) | 7.65% | ||
| GM | 23.6% |
OM growth 3Y-25.58%
OM growth 5Y44.59%
PM growth 3Y-25.95%
PM growth 5YN/A
GM growth 3Y-17.4%
GM growth 5Y16.59%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LPX is creating value.
- The number of shares outstanding for LPX has been reduced compared to 1 year ago.
- The number of shares outstanding for LPX has been reduced compared to 5 years ago.
- The debt/assets ratio for LPX has been reduced compared to a year ago.
2.2 Solvency
- LPX has an Altman-Z score of 6.87. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
- LPX has a better Altman-Z score (6.87) than 100.00% of its industry peers.
- LPX has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as LPX would need 2.43 years to pay back of all of its debts.
- LPX has a Debt to FCF ratio of 2.43. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that LPX is not too dependend on debt financing.
- LPX's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. LPX outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 6.87 |
ROIC/WACC1.21
WACC8.59%
2.3 Liquidity
- LPX has a Current Ratio of 2.93. This indicates that LPX is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.93, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- A Quick Ratio of 1.72 indicates that LPX should not have too much problems paying its short term obligations.
- LPX's Quick ratio of 1.72 is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
- LPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.23%.
- LPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.82% yearly.
- Looking at the last year, LPX shows a decrease in Revenue. The Revenue has decreased by -3.29% in the last year.
- LPX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
EPS 1Y (TTM)-34.23%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-70.49%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-8.17%
3.2 Future
- Based on estimates for the next years, LPX will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
- The Revenue is expected to grow by 4.11% on average over the next years.
EPS Next Y-53.98%
EPS Next 2Y-18.75%
EPS Next 3Y-3.26%
EPS Next 5Y6.22%
Revenue Next Year-6.34%
Revenue Next 2Y-0.66%
Revenue Next 3Y2.97%
Revenue Next 5Y4.11%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.00, LPX can be considered very expensive at the moment.
- LPX's Price/Earnings ratio is a bit cheaper when compared to the industry. LPX is cheaper than 77.78% of the companies in the same industry.
- LPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 23.55 indicates a rather expensive valuation of LPX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LPX indicates a somewhat cheap valuation: LPX is cheaper than 77.78% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of LPX to the average of the S&P500 Index (24.26), we can say LPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 23.55 |
4.2 Price Multiples
- LPX's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as LPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.44 | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
- LPX has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as LPX's earnings are expected to decrease with -3.26% in the coming years.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-18.75%
EPS Next 3Y-3.26%
5. Dividend
5.1 Amount
- LPX has a Yearly Dividend Yield of 1.20%.
- LPX's Dividend Yield is a higher than the industry average which is at 1.37.
- Compared to the average S&P500 Dividend Yield of 1.82, LPX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
- The dividend of LPX is nicely growing with an annual growth rate of 14.78%!
- LPX has been paying a dividend for at least 10 years, so it has a reliable track record.
- LPX has decreased its dividend recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 35.19% of the earnings are spent on dividend by LPX. This is a low number and sustainable payout ratio.
- LPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.19%
EPS Next 2Y-18.75%
EPS Next 3Y-3.26%
LOUISIANA-PACIFIC CORP / LPX FAQ
What is the fundamental rating for LPX stock?
ChartMill assigns a fundamental rating of 6 / 10 to LPX.
What is the valuation status for LPX stock?
ChartMill assigns a valuation rating of 3 / 10 to LOUISIANA-PACIFIC CORP (LPX). This can be considered as Overvalued.
Can you provide the profitability details for LOUISIANA-PACIFIC CORP?
LOUISIANA-PACIFIC CORP (LPX) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for LPX stock?
The Price/Earnings (PE) ratio for LOUISIANA-PACIFIC CORP (LPX) is 25 and the Price/Book (PB) ratio is 3.65.
Is the dividend of LOUISIANA-PACIFIC CORP sustainable?
The dividend rating of LOUISIANA-PACIFIC CORP (LPX) is 5 / 10 and the dividend payout ratio is 35.19%.