LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - New York Stock Exchange, Inc. - US5463471053 - Common Stock - Currency: USD
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year LPX was profitable.
In the past year LPX had a positive cash flow from operations.
LPX had positive earnings in 4 of the past 5 years.
LPX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LPX's Return On Assets of 16.19% is amongst the best of the industry. LPX outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 25.03%, LPX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
LPX has a Return On Invested Capital of 17.78%. 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 41.81%. This is significantly above the industry average of 6.65%.
The last Return On Invested Capital (17.78%) for LPX is well below the 3 year average (41.81%), which needs to be investigated, but indicates that LPX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 25.03% | ||
| ROIC | 17.78% |
ROA(3y)38.76%
ROA(5y)27.99%
ROE(3y)66.24%
ROE(5y)47.73%
ROIC(3y)41.81%
ROIC(5y)30.97%
1.3 Margins
LPX's Profit Margin of 14.29% 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.
LPX has a Operating Margin of 18.92%. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of LPX has declined.
Looking at the Gross Margin, with a value of 28.34%, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
LPX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.92% | ||
| PM (TTM) | 14.29% | ||
| GM | 28.34% |
OM growth 3Y-21.56%
OM growth 5Y-7.62%
PM growth 3Y-30.79%
PM growth 5Y-13.15%
GM growth 3Y-12.86%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LPX is creating value.
There is no outstanding debt for LPX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
LPX has an Altman-Z score of 7.65. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
LPX has a better Altman-Z score (7.65) than 100.00% of its industry peers.
LPX has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
LPX's Debt to FCF ratio of 0.88 is amongst the best of 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 | 0.88 | ||
| Altman-Z | 7.65 |
ROIC/WACC2.03
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.92 indicates that LPX has no problem at all paying its short term obligations.
LPX has a better Current ratio (2.92) than 88.89% of its industry peers.
A Quick Ratio of 1.69 indicates that LPX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
LPX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.30%, which is quite impressive.
The Earnings Per Share has been growing by 73.82% on average over the past years. This is a very strong growth
EPS 1Y (TTM)82.3%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%45.07%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.5%
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 5.84% on average per year.
LPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.97% yearly.
EPS Next Y-2.94%
EPS Next 2Y6.38%
EPS Next 3Y6.3%
EPS Next 5Y5.84%
Revenue Next Year4.71%
Revenue Next 2Y6.1%
Revenue Next 3Y5.49%
Revenue Next 5Y4.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.82 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.
The average S&P500 Price/Earnings ratio is at 29.63. LPX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.33, the valuation of LPX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPX indicates a somewhat cheap valuation: LPX is cheaper than 66.67% of the companies listed in the same industry.
LPX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LPX.
Based on the Price/Free Cash Flow ratio, LPX is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.55 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The decent profitability rating of LPX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y6.38%
EPS Next 3Y6.3%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.11%.
Compared to an average industry Dividend Yield of 2.22, LPX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
5.2 History
The dividend of LPX is nicely growing with an annual growth rate of 12.68%!
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)12.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
17.51% 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.
DP17.51%
EPS Next 2Y6.38%
EPS Next 3Y6.3%
98.71
-2.18 (-2.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners84.35%
Inst Owner Change-0.1%
Ins Owners1.58%
Ins Owner Change0.42%
Market Cap6.93B
Analysts67.14
Price Target119 (20.56%)
Short Float %2.88%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
Yearly Dividend0.96
Dividend Growth(5Y)12.68%
DP17.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.28%
Min EPS beat(2)7.27%
Max EPS beat(2)37.28%
EPS beat(4)4
Avg EPS beat(4)26.91%
Min EPS beat(4)7.27%
Max EPS beat(4)37.28%
EPS beat(8)7
Avg EPS beat(8)81.53%
EPS beat(12)10
Avg EPS beat(12)56.63%
EPS beat(16)14
Avg EPS beat(16)45.31%
Revenue beat(2)2
Avg Revenue beat(2)3.13%
Min Revenue beat(2)1.09%
Max Revenue beat(2)5.18%
Revenue beat(4)4
Avg Revenue beat(4)3.85%
Min Revenue beat(4)1.09%
Max Revenue beat(4)5.18%
Revenue beat(8)5
Avg Revenue beat(8)-0.15%
Revenue beat(12)6
Avg Revenue beat(12)-2.32%
Revenue beat(16)6
Avg Revenue beat(16)-5.46%
PT rev (1m)2.44%
PT rev (3m)10.32%
EPS NQ rev (1m)21.41%
EPS NQ rev (3m)30.66%
EPS NY rev (1m)2.32%
EPS NY rev (3m)4.28%
Revenue NQ rev (1m)2.15%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 17.33 | ||
| P/S | 2.38 | ||
| P/FCF | 17.55 | ||
| P/OCF | 10.51 | ||
| P/B | 4.16 | ||
| P/tB | 4.31 | ||
| EV/EBITDA | 10.47 |
EPS(TTM)5.87
EY5.95%
EPS(NY)5.7
Fwd EY5.77%
FCF(TTM)5.62
FCFY5.7%
OCF(TTM)9.4
OCFY9.52%
SpS41.54
BVpS23.72
TBVpS22.92
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 25.03% | ||
| ROCE | 24.29% | ||
| ROIC | 17.78% | ||
| ROICexc | 20.97% | ||
| ROICexgc | 21.6% | ||
| OM | 18.92% | ||
| PM (TTM) | 14.29% | ||
| GM | 28.34% | ||
| FCFM | 13.54% |
ROA(3y)38.76%
ROA(5y)27.99%
ROE(3y)66.24%
ROE(5y)47.73%
ROIC(3y)41.81%
ROIC(5y)30.97%
ROICexc(3y)51.16%
ROICexc(5y)38.88%
ROICexgc(3y)54.76%
ROICexgc(5y)41.73%
ROCE(3y)57.1%
ROCE(5y)42.29%
ROICexcg growth 3Y-31.64%
ROICexcg growth 5Y-16.08%
ROICexc growth 3Y-30.49%
ROICexc growth 5Y-15.48%
OM growth 3Y-21.56%
OM growth 5Y-7.62%
PM growth 3Y-30.79%
PM growth 5Y-13.15%
GM growth 3Y-12.86%
GM growth 5Y-2.67%
F-Score9
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.88 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 212% | ||
| Cap/Sales | 9.08% | ||
| Interest Coverage | 36.8 | ||
| Cash Conversion | 97.49% | ||
| Profit Quality | 94.72% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 7.65 |
F-Score9
WACC8.78%
ROIC/WACC2.03
Cap/Depr(3y)284.05%
Cap/Depr(5y)210.81%
Cap/Sales(3y)10.63%
Cap/Sales(5y)8.43%
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-2.94%
EPS Next 2Y6.38%
EPS Next 3Y6.3%
EPS Next 5Y5.84%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.5%
Revenue Next Year4.71%
Revenue Next 2Y6.1%
Revenue Next 3Y5.49%
Revenue Next 5Y4.97%
EBIT growth 1Y85.86%
EBIT growth 3Y-19.62%
EBIT growth 5Y-9.29%
EBIT Next Year127.41%
EBIT Next 3Y35.2%
EBIT Next 5Y22.53%
FCF growth 1Y-56.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.46%
OCF growth 3Y-21.73%
OCF growth 5Y-9.15%