LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - New York Stock Exchange, Inc. - US5463471053 - Common Stock - Currency: USD
LPX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. LPX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LPX has a correct valuation and a medium growth rate. These ratings could make LPX a good candidate for quality investing.
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.
Each year in the past 5 years LPX has been profitable.
Each year in the past 5 years LPX had a positive operating cash flow.
1.2 Ratios
LPX has a better Return On Assets (15.68%) than 100.00% of its industry peers.
LPX's Return On Equity of 23.82% is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 16.39%, LPX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LPX had an Average Return On Invested Capital over the past 3 years of 24.24%. This is significantly above the industry average of 7.39%.
The last Return On Invested Capital (16.39%) 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 | 15.68% | ||
| ROE | 23.82% | ||
| ROIC | 16.39% |
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
LPX's Profit Margin of 13.71% is amongst the best of the industry. LPX outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of LPX has declined.
The Operating Margin of LPX (17.69%) is better than 88.89% of its industry peers.
In the last couple of years the Operating Margin of LPX has grown nicely.
LPX's Gross Margin of 27.69% is fine compared to the rest of the industry. LPX outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of LPX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.69% | ||
| PM (TTM) | 13.71% | ||
| GM | 27.69% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LPX 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 7.38. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
LPX has a Altman-Z score of 7.38. This is amongst the best in the industry. LPX outperforms 100.00% of its industry peers.
LPX has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.97, LPX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LPX has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, 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 | 0.21 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 7.38 |
ROIC/WACC1.87
WACC8.76%
2.3 Liquidity
A Current Ratio of 3.03 indicates that LPX has no problem at all paying its short term obligations.
LPX has a better Current ratio (3.03) than 88.89% of its industry peers.
LPX has a Quick Ratio of 1.59. This is a normal value and indicates that LPX is financially healthy and should not expect problems in meeting its short term obligations.
LPX has a Quick ratio of 1.59. This is in the better half of the industry: LPX outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.21% over the past year.
The Earnings Per Share has been growing by 73.82% on average over the past years. This is a very strong growth
LPX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.05%.
The Revenue has been growing slightly by 4.95% on average over the past years.
EPS 1Y (TTM)27.21%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-16.99%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%0%
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 6.81% on average per year.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y-24.2%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
EPS Next 5Y6.81%
Revenue Next Year-0.47%
Revenue Next 2Y3.22%
Revenue Next 3Y4.22%
Revenue Next 5Y5.25%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.25 indicates a correct valuation of LPX.
Based on the Price/Earnings ratio, LPX is valued cheaper than 88.89% of the companies in the same industry.
LPX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
LPX is valuated correctly with a Price/Forward Earnings ratio of 16.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPX is on the same level as its industry peers.
LPX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
LPX's Enterprise Value to EBITDA ratio is in line with the industry average.
LPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
LPX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, LPX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of LPX grows each year by 14.78%, which is quite nice.
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
18.61% 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.
DP18.61%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
NYSE:LPX (7/14/2025, 3:27:04 PM)
91.157
-1.75 (-1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners85.62%
Inst Owner Change0%
Ins Owners1.43%
Ins Owner Change4.36%
Market Cap6.34B
Analysts67.14
Price Target109.82 (20.47%)
Short Float %3.92%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP18.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.66%
Min EPS beat(2)6.47%
Max EPS beat(2)18.86%
EPS beat(4)4
Avg EPS beat(4)17.47%
Min EPS beat(4)6.47%
Max EPS beat(4)37.28%
EPS beat(8)7
Avg EPS beat(8)15.01%
EPS beat(12)10
Avg EPS beat(12)57.21%
EPS beat(16)14
Avg EPS beat(16)45.34%
Revenue beat(2)2
Avg Revenue beat(2)1.05%
Min Revenue beat(2)1.03%
Max Revenue beat(2)1.06%
Revenue beat(4)4
Avg Revenue beat(4)1.98%
Min Revenue beat(4)1.03%
Max Revenue beat(4)4.72%
Revenue beat(8)6
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-2.47%
PT rev (1m)0%
PT rev (3m)-5.56%
EPS NQ rev (1m)-2.5%
EPS NQ rev (3m)-28.91%
EPS NY rev (1m)-4.3%
EPS NY rev (3m)-19.74%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 16.48 | ||
| P/S | 2.16 | ||
| P/FCF | 17.72 | ||
| P/OCF | 11.25 | ||
| P/B | 3.75 | ||
| P/tB | 3.87 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)5.61
EY6.15%
EPS(NY)5.53
Fwd EY6.07%
FCF(TTM)5.14
FCFY5.64%
OCF(TTM)8.1
OCFY8.89%
SpS42.25
BVpS24.31
TBVpS23.55
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.68% | ||
| ROE | 23.82% | ||
| ROCE | 22.68% | ||
| ROIC | 16.39% | ||
| ROICexc | 18.45% | ||
| ROICexgc | 18.95% | ||
| OM | 17.69% | ||
| PM (TTM) | 13.71% | ||
| GM | 27.69% | ||
| FCFM | 12.18% |
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%
ROICexcg growth 3Y-39.19%
ROICexcg 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-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 158.46% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 37.14 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 88.83% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 7.38 |
F-Score8
WACC8.76%
ROIC/WACC1.87
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)27.21%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-16.99%
EPS Next Y-24.2%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
EPS Next 5Y6.81%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%0%
Revenue Next Year-0.47%
Revenue Next 2Y3.22%
Revenue Next 3Y4.22%
Revenue Next 5Y5.25%
EBIT growth 1Y16.07%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year6.11%
EBIT Next 3Y11.03%
EBIT Next 5Y11.54%
FCF growth 1Y115.66%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y-6%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%