LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LPX - US5463471053 - Common Stock
90.65 USD
-0.6 (-0.66%)
We assign a fundamental rating of 6 out of 10 to LPX. LPX was compared to 9 industry peers in the Paper & Forest Products industry. LPX gets an excellent profitability rating and is at the same time showing great financial health properties. LPX does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- LPX had positive earnings in the past year.
- LPX had a positive operating cash flow in the past year.
- In the past 5 years LPX has always been profitable.
- LPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 8.15%, LPX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.42%, LPX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of LPX (7.65%) is better than 77.78% of its industry peers.
- 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.
- LPX's Operating Margin has improved in the last couple of years.
- 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
- LPX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for LPX has been reduced compared to 1 year ago.
- Compared to 5 years ago, LPX has less shares outstanding
- Compared to 1 year ago, LPX has an improved debt to assets ratio.
2.2 Solvency
- LPX has an Altman-Z score of 6.81. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
- LPX has a better Altman-Z score (6.81) than 100.00% of its industry peers.
- The Debt to FCF ratio of LPX is 2.43, which is a good value as it means it would take LPX, 2.43 years of fcf income to pay off all of its debts.
- LPX's Debt to FCF ratio of 2.43 is amongst the best of 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.
- With a decent Debt to Equity ratio value of 0.20, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 6.81 |
ROIC/WACC1.21
WACC8.57%
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.
- The Current ratio of LPX (2.93) is better than 77.78% of its industry peers.
- LPX has a Quick Ratio of 1.72. This is a normal value and indicates that LPX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of LPX (1.72) is better than 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%.
- Measured over the past years, LPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.82% on average per year.
- 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
- The Earnings Per Share is expected to grow by 6.22% on average over the next years.
- Based on estimates for the next years, LPX will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y-53.94%
EPS Next 2Y-20.34%
EPS Next 3Y-3.77%
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 24.84, LPX is valued on the expensive side.
- 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.
- LPX is valuated rather expensively with a Price/Forward Earnings ratio of 24.34.
- LPX's Price/Forward 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 24.34 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPX is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.15 | ||
| EV/EBITDA | 13.39 |
4.3 Compensation for Growth
- The excellent profitability rating of LPX may justify a higher PE ratio.
- LPX's earnings are expected to decrease with -3.77% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-20.34%
EPS Next 3Y-3.77%
5. Dividend
5.1 Amount
- LPX has a Yearly Dividend Yield of 1.21%.
- Compared to an average industry Dividend Yield of 1.45, LPX pays a bit more dividend than its industry peers.
- LPX's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
- The dividend of LPX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.19%
EPS Next 2Y-20.34%
EPS Next 3Y-3.77%
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 24.84 and the Price/Book (PB) ratio is 3.63.
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%.