LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LPX - US5463471053 - Common Stock
87.67 USD
+0.55 (+0.63%)
87.67 USD
0 (0%)
Taking everything into account, LPX scores 6 out of 10 in our fundamental rating. LPX was compared to 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 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.
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.
With a decent Return On Equity value of 12.42%, LPX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.37%, 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 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
The Profit Margin of LPX (7.65%) is better than 77.78% of its industry peers.
In the last couple of years the Profit Margin of LPX has declined.
LPX has a better Operating Margin (11.98%) than 88.89% of its industry peers.
LPX's Operating Margin has improved in the last couple of years.
The Gross Margin of LPX (23.60%) is better than 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
Compared to 5 years ago, LPX has less shares outstanding
The debt/assets ratio for LPX has been reduced compared to a year ago.
2.2 Solvency
LPX has an Altman-Z score of 6.62. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.62, LPX belongs to the top 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.
With a decent Debt to Equity ratio value of 0.20, LPX is doing good in 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 | 6.62 |
ROIC/WACC1.23
WACC8.45%
2.3 Liquidity
A Current Ratio of 2.93 indicates that LPX has no problem at all paying 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
The earnings per share for LPX have decreased strongly by -34.23% in the last 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 a decrease in Revenue. In the last year, the revenue decreased by -3.29%.
LPX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
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
LPX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.22% yearly.
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-53.12%
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
EPS Next 5Y6.22%
Revenue Next Year-6.2%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.74%
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.
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
The Price/Earnings ratio is 24.02, which indicates a rather expensive current valuation of LPX.
77.78% of the companies in the same industry are more expensive than LPX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, LPX is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.54, the valuation of LPX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than 77.78% of the companies in the same industry.
LPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.54 |
4.2 Price Multiples
LPX's Enterprise Value to EBITDA ratio is in line with the industry average.
LPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.69 | ||
| EV/EBITDA | 12.79 |
4.3 Compensation for Growth
The excellent profitability rating of LPX may justify a higher PE ratio.
LPX's earnings are expected to decrease with -3.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
LPX's Dividend Yield is comparable with the industry average which is at 5.49.
Compared to an average S&P500 Dividend Yield of 2.31, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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
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-18.6%
EPS Next 3Y-3.31%
87.67
+0.55 (+0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners91.94%
Inst Owner Change0.34%
Ins Owners0.67%
Ins Owner Change0.01%
Market Cap6.11B
Revenue(TTM)2.82B
Net Income(TTM)216.00M
Analysts72
Price Target103.94 (18.56%)
Short Float %6.58%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
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)-6.68%
PT rev (3m)-3.87%
EPS NQ rev (1m)-44.07%
EPS NQ rev (3m)-71.14%
EPS NY rev (1m)-5.99%
EPS NY rev (3m)-14.43%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.54 | ||
| P/S | 2.16 | ||
| P/FCF | 42.69 | ||
| P/OCF | 14.5 | ||
| P/B | 3.51 | ||
| P/tB | 3.61 | ||
| EV/EBITDA | 12.79 |
EPS(TTM)3.65
EY4.16%
EPS(NY)3.89
Fwd EY4.44%
FCF(TTM)2.05
FCFY2.34%
OCF(TTM)6.05
OCFY6.9%
SpS40.52
BVpS24.97
TBVpS24.27
PEG (NY)N/A
PEG (5Y)0.33
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 | 6.62 |
F-Score6
WACC8.45%
ROIC/WACC1.23
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-53.12%
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
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-6.2%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.74%
Revenue Next 5Y4.11%
EBIT growth 1Y-38.77%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year-20.69%
EBIT Next 3Y6.6%
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 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.
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%.