Louisiana-Pacific
Market Cap
US$2.9b
Last Updated
2020/07/06 23:57 UTC
Data Sources
Company Financials +
Executive Summary
Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
Similar Companies
Share Price & News
How has Louisiana-Pacific's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LPX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.7%
LPX
1.3%
US Forestry
4.3%
US Market
1 Year Return
-0.6%
LPX
-16.7%
US Forestry
7.4%
US Market
Return vs Industry: LPX exceeded the US Forestry industry which returned -18.9% over the past year.
Return vs Market: LPX underperformed the US Market which returned 5% over the past year.
Shareholder returns
| LPX | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 1.3% | 4.3% |
| 30 Day | -2.8% | -6.9% | 0.5% |
| 90 Day | 64.9% | 31.2% | 23.0% |
| 1 Year | 1.7%-0.6% | -14.0%-16.7% | 9.7%7.4% |
| 3 Year | 13.1%7.3% | -5.8%-13.5% | 38.3%29.2% |
| 5 Year | 68.9%60.3% | -6.5%-18.2% | 66.0%47.6% |
Price Volatility Vs. Market
How volatile is Louisiana-Pacific's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Louisiana-Pacific (NYSE:LPX) Using Too Much Debt?3 weeks ago | Simply Wall St
How Do Louisiana-Pacific Corporation’s (NYSE:LPX) Returns On Capital Compare To Peers?1 month ago | Simply Wall St
Our Take On Louisiana-Pacific Corporation's (NYSE:LPX) CEO SalaryValuation
Is Louisiana-Pacific undervalued compared to its fair value and its price relative to the market?
3109.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LPX ($26.29) is trading above our estimate of fair value ($15.24)
Significantly Below Fair Value: LPX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: LPX is poor value based on its PE Ratio (3109x) compared to the Forestry industry average (15.8x).
PE vs Market: LPX is poor value based on its PE Ratio (3109x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: LPX is poor value based on its PEG Ratio (26.8x)
Price to Book Ratio
PB vs Industry: LPX is overvalued based on its PB Ratio (3x) compared to the US Forestry industry average (1.2x).
Next Steps
Future Growth
How is Louisiana-Pacific forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
116.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LPX's forecast earnings growth (116.1% per year) is above the savings rate (2.2%).
Earnings vs Market: LPX's earnings (116.1% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LPX's revenue (11.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: LPX's revenue (11.7% per year) is forecast to grow slower than 20% 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
Next Steps
Past Performance
How has Louisiana-Pacific performed over the past 5 years?
32.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LPX has a large one-off loss of $102.0M impacting its March 31 2020 financial results.
Growing Profit Margin: LPX's current net profit margins (0.04%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: LPX has become profitable over the past 5 years, growing earnings by 32.5% per year.
Accelerating Growth: LPX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LPX had negative earnings growth (-99.7%) over the past year, making it difficult to compare to the Forestry industry average (-27.7%).
Return on Equity
High ROE: LPX's Return on Equity (-0.3%) is considered low.
Next Steps
Financial Health
How is Louisiana-Pacific's financial position?
Financial Position Analysis
Short Term Liabilities: LPX's short term assets ($976.0M) exceed its short term liabilities ($214.0M).
Long Term Liabilities: LPX's short term assets ($976.0M) exceed its long term liabilities ($924.0M).
Debt to Equity History and Analysis
Debt Level: LPX's debt to equity ratio (69.3%) is considered high.
Reducing Debt: LPX's debt to equity ratio has reduced from 70.7% to 69.3% over the past 5 years.
Debt Coverage: LPX's debt is well covered by operating cash flow (29.6%).
Interest Coverage: LPX's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Louisiana-Pacific current dividend yield, its reliability and sustainability?
2.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LPX's dividend (2.21%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: LPX's dividend (2.21%) is low compared to the top 25% of dividend payers in the US market (4.5%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (6504.3%), LPX's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Brad Southern (60yo)
3yrs
Tenure
US$5,592,330
Compensation
Mr. William Bradley Southern, also known as Brad, has been Chief Executive Officer of Louisiana-pacific Corp. since July 1, 2017 and has been its Chairman since May 22, 2020. Mr. Southern serves as Directo ...
CEO Compensation Analysis
Compensation vs Market: Brad's total compensation ($USD5.59M) is about average for companies of similar size in the US market ($USD5.83M).
Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3yrs | US$5.59m | 0.12% $3.5m | |
| Executive VP & CFO | 1.5yrs | US$1.78m | 0.027% $783.5k | |
| Senior Vice President of Sales | 5.25yrs | US$1.19m | 0.039% $1.1m | |
| Executive Vice President of the Siding Business | 5.33yrs | US$1.39m | 0.037% $1.1m | |
| Executive Vice President of Oriented Strand Board | 3.5yrs | US$1.54m | 0.021% $612.7k | |
| VP, Controller & Chief Accounting Officer | 0.75yr | no data | no data | |
| VP of Corporate Engineering & Director of Technology | no data | no data | no data | |
| VP & Chief Information Officer | no data | no data | no data | |
| Director of Investor Relations | 0.75yr | no data | no data | |
| Senior VP | 0.83yr | no data | no data |
2.3yrs
Average Tenure
56yo
Average Age
Experienced Management: LPX's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3yrs | US$5.59m | 0.12% $3.5m | |
| Lead Independent Director | 0.17yr | US$217.50k | 0.038% $1.1m | |
| Independent Director | 15.08yrs | US$217.50k | 0.052% $1.5m | |
| Independent Director | 1.42yrs | US$194.06k | 0.013% $396.2k | |
| Independent Director | 1.08yrs | US$153.30k | no data | |
| Independent Director | 13.67yrs | US$212.50k | 0.030% $877.3k | |
| Independent Director | 3.83yrs | US$202.50k | 0.016% $482.3k | |
| Independent Director | 4.42yrs | US$202.50k | 0.013% $389.1k |
2.6yrs
Average Tenure
61.5yo
Average Age
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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Louisiana-Pacific Corporation
- Ticker: LPX
- Exchange: NYSE
- Founded: 1973
- Industry: Forest Products
- Sector: Materials
- Market Cap: US$2.950b
- Shares outstanding: 112.21m
- Website: https://www.lpcorp.com
Number of Employees
Location
- Louisiana-Pacific Corporation
- 414 Union Street
- Suite 2000
- Nashville
- Tennessee
- 37219-1700
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LPX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 1972 |
| LP3 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
Biography
Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through four segments: Siding; North America Oriented Strand Board (OSB); Engineered Wood Products; and South America. The Siding segment offers siding products and related accessories, such as wood-based siding, trim, soffit, and fascia products; and CanExel siding and accessory products, including pre-finished lap and trim products, as well as outdoor building solutions. The OSB segment manufactures and distributes structural panel products comprising OSBs, TechShield radiant barriers, TopNotch sub-floorings, Legacy super tough products, moisture-resistant sub-floorings, and FlameBlock fire-rated sheathing products. The Engineered Wood Products segment provides laminated veneer lumber, laminated strand lumber, and other related products; and I-joists, which are primarily used in residential and commercial floorings, roofing systems, and other structural applications. The South America segment manufactures and distributes OSB and siding products. This segment also distributes and sells related products to augment the transition to wood frame construction. The company also offers timber and timberlands, as well as other products and services. Louisiana-Pacific Corporation sells its products, primarily to retail home centers, wholesalers, distributors, and homebuilding and industrial businesses in North America and South America, as well as in Asia, Australia, and Europe. The company was founded in 1973 and is headquartered in Nashville, Tennessee.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/06 23:57 |
| End of Day Share Price | 2020/07/06 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.