Louisiana-Pacific
Market Cap
US$6.7b
Last Updated
2021/04/13 22:06 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 13% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet with proven track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: LPX's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
5.1%
LPX
2.3%
US Forestry
1.3%
US Market
1 Year Return
256.9%
LPX
120.6%
US Forestry
53.9%
US Market
Return vs Industry: LPX exceeded the US Forestry industry which returned 120.6% over the past year.
Return vs Market: LPX exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| LPX | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.1% | 2.3% | 1.3% |
| 30 Day | 20.9% | 6.5% | 2.8% |
| 90 Day | 66.7% | 32.4% | 6.6% |
| 1 Year | 264.3%256.9% | 128.5%120.6% | 56.6%53.9% |
| 3 Year | 116.9%104.1% | 32.2%20.1% | 62.7%52.3% |
| 5 Year | 273.6%250.0% | 47.7%32.0% | 120.5%95.9% |
Long-Term 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 It Worth Buying Louisiana-Pacific Corporation (NYSE:LPX) For Its 1.1% Dividend Yield?3 weeks ago | Simply Wall St
Is Louisiana-Pacific Corporation's (NYSE:LPX) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?1 month ago | Simply Wall St
Shareholders Of Louisiana-Pacific (NYSE:LPX) Must Be Happy With Their 221% Total ReturnValuation
Is Louisiana-Pacific undervalued compared to its fair value and its price relative to the market?
14.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: LPX ($63.39) is trading above our estimate of fair value ($21.69)
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 (14.1x) compared to the US Forestry industry average (25.1x).
PE vs Market: LPX is good value based on its PE Ratio (14.1x) compared to the US market (22.3x).
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 (5.5x) compared to the US Forestry industry average (1.2x).
Future Growth
How is Louisiana-Pacific forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-13.0%
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 (-13% per year).
Earnings vs Market: LPX's earnings are forecast to decline over the next 3 years (-13% per year).
High Growth Earnings: LPX's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LPX's revenue (3.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: LPX's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LPX's Return on Equity is forecast to be low in 3 years time (15.9%).
Past Performance
How has Louisiana-Pacific performed over the past 5 years?
13.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LPX has high quality earnings.
Growing Profit Margin: LPX became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LPX has become profitable over the past 5 years, growing earnings by 13.1% per year.
Accelerating Growth: LPX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LPX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (28.6%).
Return on Equity
High ROE: LPX's Return on Equity (40%) is considered high.
Financial Health
How is Louisiana-Pacific's financial position?
Financial Position Analysis
Short Term Liabilities: LPX's short term assets ($993.0M) exceed its short term liabilities ($286.0M).
Long Term Liabilities: LPX's short term assets ($993.0M) exceed its long term liabilities ($556.0M).
Debt to Equity History and Analysis
Debt Level: LPX's debt to equity ratio (28%) is considered satisfactory.
Reducing Debt: LPX's debt to equity ratio has reduced from 74.1% to 28% over the past 5 years.
Debt Coverage: LPX's debt is well covered by operating cash flow (189.4%).
Interest Coverage: LPX's interest payments on its debt are well covered by EBIT (44.4x coverage).
Balance Sheet
Dividend
What is Louisiana-Pacific current dividend yield, its reliability and sustainability?
1.01%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LPX's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: LPX's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.9%), 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 well covered by earnings (19.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Brad Southern (60 yo)
3.75yrs
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 ($USD6.39M).
Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: LPX's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: LPX's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LPX insiders have only sold shares 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: 1972
- Industry: Forest Products
- Sector: Materials
- Market Cap: US$6.705b
- Shares outstanding: 106.55m
- Website: https://www.lpcorp.com
Number of Employees
Location
- Louisiana-Pacific Corporation
- 414 Union Street
- Suite 2000
- Nashville
- Tennessee
- 37219-1700
- United States
Listings
Biography
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. I...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 22:06 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.