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LPX

Louisiana-PacificNYSE:LPX Stock Report

Market Cap

US$5.7b

7D

1.1%

1Y

107.4%

Updated

23 Sep, 2021

Data

Company Financials +
LPX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health6/6
Dividends2/6

LPX Overview

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets.

Louisiana-Pacific Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Louisiana-Pacific
Historical stock prices
Current Share PriceUS$61.69
52 Week HighUS$27.01
52 Week LowUS$76.35
Beta1.85
1 Month Change2.15%
3 Month Change6.23%
1 Year Change107.36%
3 Year Change126.97%
5 Year Change229.72%
Change since IPO320.61%

Recent News & Updates

Aug 30
Should You Be Adding Louisiana-Pacific (NYSE:LPX) To Your Watchlist Today?

Should You Be Adding Louisiana-Pacific (NYSE:LPX) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Aug 01
Is Louisiana-Pacific (NYSE:LPX) A Risky Investment?

Is Louisiana-Pacific (NYSE:LPX) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 29

Don't Yell 'TIMBER' On Louisiana-Pacific Corp. Just Yet

Demand for lumber shot up when pandemic shut-ins undertook home remodeling and repairs. Combined with lumber shortages, lumber prices and company profits shot up. Shares hit a new high. Overall, we are not excited for retail value investors to initiate new positions or add shares. Shares are valued high while new house sales are sleepy. Louisiana-Pacific is a seasoned company in business for half a century weathering challenges, deep assets, profitable, but lacks a wellspring to spark a stock price jump.

Shareholder Returns

LPXUS ForestryUS Market
7D1.1%2.6%-0.5%
1Y107.4%79.5%37.5%

Return vs Industry: LPX exceeded the US Forestry industry which returned 76.7% over the past year.

Return vs Market: LPX exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is LPX's price volatile compared to industry and market?
LPX volatility
LPX Beta1.85
Industry Beta1.85
Market Beta1

Stable Share Price: LPX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LPX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19724,500Brad Southernhttps://www.lpcorp.com

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through four segments: Siding; Oriented Strand Board (OSB); Engineered Wood Products (EWP); and South America. The Siding segment offers LP SmartSide trim and siding products, ExpertFinish prefinished siding products, and LP outdoor building solutions for premium outdoor buildings; and engineered wood siding, trim, soffit, and fascia products.

Louisiana-Pacific Fundamentals Summary

How do Louisiana-Pacific's earnings and revenue compare to its market cap?
LPX fundamental statistics
Market CapUS$5.71b
Earnings (TTM)US$1.25b
Revenue (TTM)US$4.00b

4.7x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LPX income statement (TTM)
RevenueUS$4.00b
Cost of RevenueUS$2.17b
Gross ProfitUS$1.83b
ExpensesUS$577.00m
EarningsUS$1.25b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)11.75
Gross Margin45.73%
Net Profit Margin31.30%
Debt/Equity Ratio24.0%

How did LPX perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

5%

Payout Ratio

Valuation

Is Louisiana-Pacific undervalued compared to its fair value and its price relative to the market?

4.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPX ($61.69) is trading above our estimate of fair value ($15.39)

Significantly Below Fair Value: LPX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LPX is good value based on its PE Ratio (4.7x) compared to the US Forestry industry average (17.8x).

PE vs Market: LPX is good value based on its PE Ratio (4.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LPX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LPX is overvalued based on its PB Ratio (4.1x) compared to the US Forestry industry average (1.3x).


Future Growth

How is Louisiana-Pacific forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-50.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPX's earnings are forecast to decline over the next 3 years (-50.7% per year).

Earnings vs Market: LPX's earnings are forecast to decline over the next 3 years (-50.7% per year).

High Growth Earnings: LPX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LPX's revenue is expected to decline over the next 3 years (-12.9% per year).

High Growth Revenue: LPX's revenue is forecast to decline over the next 3 years (-12.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LPX's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Louisiana-Pacific performed over the past 5 years?

24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPX has high quality earnings.

Growing Profit Margin: LPX's current net profit margins (31.3%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: LPX's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: LPX's earnings growth over the past year (7258.8%) exceeds its 5-year average (24.7% per year).

Earnings vs Industry: LPX earnings growth over the past year (7258.8%) exceeded the Forestry industry 178.8%.


Return on Equity

High ROE: LPX's Return on Equity (86.7%) is considered outstanding.


Financial Health

How is Louisiana-Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: LPX's short term assets ($1.2B) exceed its short term liabilities ($353.0M).

Long Term Liabilities: LPX's short term assets ($1.2B) exceed its long term liabilities ($572.0M).


Debt to Equity History and Analysis

Debt Level: LPX's debt to equity ratio (24%) is considered satisfactory.

Reducing Debt: LPX's debt to equity ratio has reduced from 69% to 24% over the past 5 years.

Debt Coverage: LPX's debt is well covered by operating cash flow (378.9%).

Interest Coverage: LPX's interest payments on its debt are well covered by EBIT (115.9x coverage).


Balance Sheet


Dividend

What is Louisiana-Pacific current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LPX's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: LPX's dividend (1.17%) is low compared to the top 25% of dividend payers in the US market (3.63%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LPX has been paying a dividend for less than 10 years.

Growing Dividend: LPX's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.2%), LPX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LPX's dividends in 3 years are forecast to be thoroughly covered by earnings (12.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Brad Southern (61 yo)

4.17yrs

Tenure

US$7,491,619

Compensation

Mr. William Bradley Southern, also known as Brad, has been Chief Executive Officer of Louisiana-pacific Corp. since July 1, 2017 and has been its Chairman since May 22, 2020. Mr. Southern serves as Directo...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD7.49M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Brad's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LPX's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: LPX's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LPX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Louisiana-Pacific Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Louisiana-Pacific Corporation
  • Ticker: LPX
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: US$5.711b
  • Shares outstanding: 95.23m
  • Website: https://www.lpcorp.com

Number of Employees


Location

  • Louisiana-Pacific Corporation
  • 414 Union Street
  • Suite 2000
  • Nashville
  • Tennessee
  • 37219-1700
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:56
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.