LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LPX - US5463471053 - Common Stock
81.84 USD
-0.22 (-0.27%)
81.84 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. Both the health and profitability get an excellent rating, making LPX a very profitable company, without any liquidiy or solvency issues. LPX has a valuation in line with the averages, but on the other hand it 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.
LPX had positive earnings in each of the past 5 years.
Each year in the past 5 years LPX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.15%, LPX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
LPX has a Return On Equity of 12.42%. This is in the better half 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.
LPX had an Average Return On Invested Capital over the past 3 years of 24.24%. This is significantly above the industry average of 5.80%.
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
Looking at the Profit Margin, with a value of 7.65%, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
LPX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 11.98%, LPX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of LPX has grown nicely.
With a decent Gross Margin value of 23.60%, LPX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of LPX has grown nicely.
| 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.
LPX has less shares outstanding than it did 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 6.38. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.38, LPX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
The Debt to FCF ratio of LPX (2.43) is better than 88.89% of its industry peers.
LPX has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, LPX is in the better half of 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 | 6.38 |
ROIC/WACC1.24
WACC8.4%
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.
LPX's Current ratio of 2.93 is fine compared to the rest of the industry. LPX outperforms 77.78% of its industry peers.
A Quick Ratio of 1.72 indicates that LPX should not have too much problems paying its short term obligations.
LPX has a better Quick ratio (1.72) 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.
The Revenue has been growing slightly by 4.95% on average over the past years.
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.
LPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y-50.14%
EPS Next 2Y-11.93%
EPS Next 3Y-2.93%
EPS Next 5Y6.22%
Revenue Next Year-4.88%
Revenue Next 2Y1.48%
Revenue Next 3Y3.59%
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
The Price/Earnings ratio is 22.42, which indicates a rather expensive current valuation of LPX.
Based on the Price/Earnings ratio, LPX is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LPX to the average of the S&P500 Index (26.15), we can say LPX is valued inline with the index average.
The Price/Forward Earnings ratio is 17.97, which indicates a rather expensive current valuation of LPX.
Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LPX to the average of the S&P500 Index (36.22), we can say LPX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LPX.
LPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.86 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
The excellent profitability rating of LPX may justify a higher PE ratio.
A cheap valuation may be justified as LPX's earnings are expected to decrease with -2.93% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-11.93%
EPS Next 3Y-2.93%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.65, LPX has a dividend in line with its industry peers.
With a Dividend Yield of 1.37, LPX pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
On average, the dividend of LPX grows each year by 14.78%, which is quite nice.
LPX has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of LPX decreased recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LPX pays out 35.19% of its income as dividend. This is a 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-11.93%
EPS Next 3Y-2.93%
81.84
-0.22 (-0.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change0.33%
Ins Owners1.45%
Ins Owner Change0.01%
Market Cap5.70B
Revenue(TTM)2.82B
Net Income(TTM)216.00M
Analysts72
Price Target103.94 (27%)
Short Float %6.58%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP35.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.36%
Min EPS beat(2)-14.24%
Max EPS beat(2)-6.47%
EPS beat(4)2
Avg EPS beat(4)1.15%
Min EPS beat(4)-14.24%
Max EPS beat(4)18.86%
EPS beat(8)6
Avg EPS beat(8)14.03%
EPS beat(12)9
Avg EPS beat(12)54.74%
EPS beat(16)12
Avg EPS beat(16)42.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)1.24%
Revenue beat(8)7
Avg Revenue beat(8)2.13%
Revenue beat(12)8
Avg Revenue beat(12)0.04%
Revenue beat(16)9
Avg Revenue beat(16)-1.64%
PT rev (1m)-3.87%
PT rev (3m)-3.87%
EPS NQ rev (1m)-51%
EPS NQ rev (3m)-63.31%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-8.98%
Revenue NQ rev (1m)-5.91%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 17.97 | ||
| P/S | 2.02 | ||
| P/FCF | 39.86 | ||
| P/OCF | 13.54 | ||
| P/B | 3.28 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)3.65
EY4.46%
EPS(NY)4.55
Fwd EY5.56%
FCF(TTM)2.05
FCFY2.51%
OCF(TTM)6.05
OCFY7.39%
SpS40.52
BVpS24.97
TBVpS24.27
PEG (NY)N/A
PEG (5Y)0.3
Graham Number45.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.42% | ||
| ROCE | 14.35% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 12.28% | ||
| OM | 11.98% | ||
| PM (TTM) | 7.65% | ||
| GM | 23.6% | ||
| FCFM | 5.07% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.24%
ROIC(5y)33.4%
ROICexc(3y)28.99%
ROICexc(5y)41.73%
ROICexgc(3y)30.19%
ROICexgc(5y)44.61%
ROCE(3y)33.53%
ROCE(5y)46.2%
ROICexgc growth 3Y-39.19%
ROICexgc growth 5Y40.96%
ROICexc growth 3Y-38.01%
ROICexc growth 5Y42.51%
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%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 200% | ||
| Cap/Sales | 9.85% | ||
| Interest Coverage | 24.14 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | 66.2% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 6.38 |
F-Score6
WACC8.4%
ROIC/WACC1.24
Cap/Depr(3y)261.32%
Cap/Depr(5y)213.35%
Cap/Sales(3y)10.55%
Cap/Sales(5y)8.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.23%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-70.49%
EPS Next Y-50.14%
EPS Next 2Y-11.93%
EPS Next 3Y-2.93%
EPS Next 5Y6.22%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-8.17%
Revenue Next Year-4.88%
Revenue Next 2Y1.48%
Revenue Next 3Y3.59%
Revenue Next 5Y4.11%
EBIT growth 1Y-38.77%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year-16.98%
EBIT Next 3Y8.84%
EBIT Next 5Y11.54%
FCF growth 1Y184.62%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y113.71%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%
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 of LOUISIANA-PACIFIC CORP (LPX) stock?
ChartMill assigns a valuation rating of 4 / 10 to LOUISIANA-PACIFIC CORP (LPX). This can be considered as Fairly Valued.
Can you provide the profitability details for LOUISIANA-PACIFIC CORP?
LOUISIANA-PACIFIC CORP (LPX) has a profitability rating of 8 / 10.
How financially healthy is LOUISIANA-PACIFIC CORP?
The financial health rating of LOUISIANA-PACIFIC CORP (LPX) is 9 / 10.
How sustainable is the dividend of LOUISIANA-PACIFIC CORP (LPX) stock?
The dividend rating of LOUISIANA-PACIFIC CORP (LPX) is 4 / 10 and the dividend payout ratio is 35.19%.