LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - New York Stock Exchange, Inc. - US5463471053 - Common Stock - Currency: USD
Overall LPX gets a fundamental rating of 7 out of 10. We evaluated LPX against 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 is not valued too expensively and it also shows a decent 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.
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
The Return On Assets of LPX (16.35%) is better than 100.00% of its industry peers.
LPX's Return On Equity of 25.13% is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
LPX has a better Return On Invested Capital (17.55%) than 100.00% of its industry peers.
LPX had an Average Return On Invested Capital over the past 3 years of 24.30%. This is significantly above the industry average of 8.01%.
The 3 year average ROIC (24.30%) for LPX is well above the current ROIC(17.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.35% | ||
| ROE | 25.13% | ||
| ROIC | 17.55% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.3%
ROIC(5y)33.43%
1.3 Margins
LPX has a better Profit Margin (14.29%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of LPX has declined.
LPX's Operating Margin of 18.74% is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of LPX has grown nicely.
LPX has a better Gross Margin (28.20%) than 77.78% of its industry peers.
LPX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.74% | ||
| PM (TTM) | 14.29% | ||
| GM | 28.2% |
OM growth 3Y-25.31%
OM growth 5Y44.91%
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.
Compared to 1 year ago, LPX has less shares outstanding
LPX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LPX has an improved debt to assets ratio.
2.2 Solvency
LPX has an Altman-Z score of 7.04. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LPX (7.04) is better than 100.00% of its industry peers.
The Debt to FCF ratio of LPX is 0.82, which is an excellent value as it means it would take LPX, only 0.82 years of fcf income to pay off all of its debts.
LPX has a Debt to FCF ratio of 0.82. This is amongst the best in the industry. LPX outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that LPX is not too dependend on debt financing.
LPX's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. LPX outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.82 | ||
| Altman-Z | 7.04 |
ROIC/WACC2.01
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.86 indicates that LPX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.86, LPX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 1.67 indicates that LPX should not have too much problems paying its short term obligations.
LPX has a Quick ratio of 1.67. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 82.30% over the past year.
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.
LPX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.91%.
Measured over the past years, LPX shows a small growth in Revenue. The Revenue has been growing by 4.95% on average per year.
EPS 1Y (TTM)82.3%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%45.07%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%3.5%
3.2 Future
The Earnings Per Share is expected to grow by 6.25% on average over the next years.
LPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y-7.2%
EPS Next 2Y0.86%
EPS Next 3Y3.77%
EPS Next 5Y6.25%
Revenue Next Year3.05%
Revenue Next 2Y5.01%
Revenue Next 3Y5.02%
Revenue Next 5Y5.27%
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 14.72, LPX is valued correctly.
Based on the Price/Earnings ratio, LPX is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.92. LPX is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.86, which indicates a correct valuation of LPX.
Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, LPX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than LPX, based on the Enterprise Value to EBITDA ratio.
88.89% of the companies in the same industry are more expensive than LPX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
LPX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2Y0.86%
EPS Next 3Y3.77%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.33%.
The stock price of LPX dropped by -24.36% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.68, LPX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of LPX is nicely growing with an annual growth rate of 14.78%!
LPX has paid a dividend for at least 10 years, which is 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
17.62% 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.
DP17.62%
EPS Next 2Y0.86%
EPS Next 3Y3.77%
NYSE:LPX (4/25/2025, 10:14:45 AM)
86.4
-0.63 (-0.72%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change0.21%
Ins Owners1.58%
Ins Owner Change3.56%
Market Cap6.02B
Analysts52.94
Price Target116.28 (34.58%)
Short Float %3.37%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP17.62%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.07%
Min EPS beat(2)18.86%
Max EPS beat(2)37.28%
EPS beat(4)4
Avg EPS beat(4)24.6%
Min EPS beat(4)7.27%
Max EPS beat(4)37.28%
EPS beat(8)7
Avg EPS beat(8)82.29%
EPS beat(12)10
Avg EPS beat(12)57.4%
EPS beat(16)14
Avg EPS beat(16)45.58%
Revenue beat(2)2
Avg Revenue beat(2)2.88%
Min Revenue beat(2)1.03%
Max Revenue beat(2)4.72%
Revenue beat(4)4
Avg Revenue beat(4)2.73%
Min Revenue beat(4)1.03%
Max Revenue beat(4)4.72%
Revenue beat(8)5
Avg Revenue beat(8)-0.13%
Revenue beat(12)7
Avg Revenue beat(12)-1.49%
Revenue beat(16)7
Avg Revenue beat(16)-2.88%
PT rev (1m)0%
PT rev (3m)0.29%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)-4.38%
EPS NY rev (3m)-2.18%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 15.86 | ||
| P/S | 2.05 | ||
| P/FCF | 14.26 | ||
| P/OCF | 9.95 | ||
| P/B | 3.6 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)5.87
EY6.79%
EPS(NY)5.45
Fwd EY6.31%
FCF(TTM)6.06
FCFY7.01%
OCF(TTM)8.69
OCFY10.06%
SpS42.22
BVpS23.99
TBVpS23.21
PEG (NY)N/A
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.35% | ||
| ROE | 25.13% | ||
| ROCE | 24.27% | ||
| ROIC | 17.55% | ||
| ROICexc | 20.64% | ||
| ROICexgc | 21.24% | ||
| OM | 18.74% | ||
| PM (TTM) | 14.29% | ||
| GM | 28.2% | ||
| FCFM | 14.35% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.3%
ROIC(5y)33.43%
ROICexc(3y)29.06%
ROICexc(5y)41.78%
ROICexgc(3y)30.27%
ROICexgc(5y)44.65%
ROCE(3y)33.62%
ROCE(5y)46.25%
ROICexcg growth 3Y-38.96%
ROICexcg growth 5Y41.27%
ROICexc growth 3Y-37.78%
ROICexc growth 5Y42.82%
OM growth 3Y-25.31%
OM growth 5Y44.91%
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 | 0.82 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 145.24% | ||
| Cap/Sales | 6.22% | ||
| Interest Coverage | 39.36 | ||
| Cash Conversion | 89.36% | ||
| Profit Quality | 100.48% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 7.04 |
F-Score8
WACC8.71%
ROIC/WACC2.01
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)82.3%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%45.07%
EPS Next Y-7.2%
EPS Next 2Y0.86%
EPS Next 3Y3.77%
EPS Next 5Y6.25%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%3.5%
Revenue Next Year3.05%
Revenue Next 2Y5.01%
Revenue Next 3Y5.02%
Revenue Next 5Y5.27%
EBIT growth 1Y65.47%
EBIT growth 3Y-32.1%
EBIT growth 5Y52.08%
EBIT Next Year19.14%
EBIT Next 3Y12.15%
EBIT Next 5Y11.37%
FCF growth 1Y759.38%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y91.46%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%