LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:LPX • US5463471053
86.44 USD
-1.99 (-2.25%)
At close: Jan 29, 2026
86.4335 USD
-0.01 (-0.01%)
After Hours: 1/29/2026, 8:04:00 PM
Overall LPX gets a fundamental rating of 6 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 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.
- 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
- 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.
- LPX's Return On Equity of 12.42% is fine compared to the rest 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.
- Measured over the past 3 years, the Average Return On Invested Capital for LPX is significantly above the industry average of 5.94%.
- The 3 year average ROIC (24.24%) for LPX is well above the current ROIC(10.37%). The reason for the recent decline needs to be investigated.
| 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.
- In the last couple of years the Profit Margin of LPX has declined.
- Looking at the Operating Margin, with a value of 11.98%, LPX belongs to the top 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.
- LPX has a Gross Margin of 23.60%. This is in the better half of the industry: LPX outperforms 66.67% of its industry peers.
- 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.
- Compared to 1 year ago, LPX has less shares outstanding
- LPX has less shares outstanding than it did 5 years ago.
- LPX has a better debt/assets ratio than last year.
2.2 Solvency
- LPX has an Altman-Z score of 6.58. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
- LPX has a Altman-Z score of 6.58. This is amongst the best in the industry. LPX outperforms 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.
- Looking at the Debt to FCF ratio, with a value of 2.43, LPX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- A Debt/Equity ratio of 0.20 indicates that LPX is not too dependend on debt financing.
- 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 | 6.58 |
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.
- LPX has a better Current ratio (2.93) than 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.
- 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%.
- The Earnings Per Share has been growing by 73.82% on average over the past years. This is a very strong growth
- 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
- The Earnings Per Share is expected to grow by 6.22% 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 4.11% yearly.
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
- A Price/Earnings ratio of 23.68 indicates a rather expensive 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.
- The average S&P500 Price/Earnings ratio is at 28.39. LPX is around the same levels.
- Based on the Price/Forward Earnings ratio of 23.21, the valuation of LPX can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. LPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 23.21 |
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.
- LPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.1 | ||
| EV/EBITDA | 12.69 |
4.3 Compensation for Growth
- LPX has an outstanding profitability rating, which 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)0.32
EPS Next 2Y-20.34%
EPS Next 3Y-3.77%
5. Dividend
5.1 Amount
- LPX has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
- LPX's Dividend Yield is a higher than the industry average which is at 1.45.
- LPX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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.
- 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 23.68 and the Price/Book (PB) ratio is 3.46.
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%.