NYSE:LPX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$5.7b

Last Updated

2021/08/01 22:15 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


Snowflake Analysis

Flawless balance sheet with outstanding 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

3.1%

LPX

2.4%

US Forestry

-0.4%

US Market


1 Year Return

75.1%

LPX

63.9%

US Forestry

35.9%

US Market

Return vs Industry: LPX exceeded the US Forestry industry which returned 63.9% over the past year.

Return vs Market: LPX exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

LPXIndustryMarket
7 Day3.1%2.4%-0.4%
30 Day-8.2%-3.2%-0.3%
90 Day-17.4%-8.6%3.1%
1 Year77.8%75.1%69.0%63.9%38.0%35.9%
3 Year112.0%100.0%26.4%13.8%62.9%52.7%
5 Year192.2%173.1%45.3%28.6%121.3%96.9%

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

Valuation

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

7.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPX ($55.44) is trading above our estimate of fair value ($13.99)

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 (7.7x) compared to the US Forestry industry average (14.8x).

PE vs Market: LPX is good value based on its PE Ratio (7.7x) compared to the US market (18.1x).


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 (1.2x).


Future Growth

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

-38.5%

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 (-38.5% per year).

Earnings vs Market: LPX's earnings are forecast to decline over the next 3 years (-38.5% 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 (-12.3% per year).

High Growth Revenue: LPX's revenue is forecast to decline over the next 3 years (-12.3% 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?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPX has high quality earnings.

Growing Profit Margin: LPX's current net profit margins (24.4%) are higher than last year (0.04%).


Past Earnings Growth Analysis

Earnings Trend: LPX has become profitable over the past 5 years, growing earnings by 16.5% per year.

Accelerating Growth: LPX's earnings growth over the past year (78500%) exceeds its 5-year average (16.5% per year).

Earnings vs Industry: LPX earnings growth over the past year (78500%) exceeded the Forestry industry 337.2%.


Return on Equity

High ROE: LPX's Return on Equity (55.6%) 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 ($360.0M).

Long Term Liabilities: LPX's short term assets ($1.2B) exceed its long term liabilities ($570.0M).


Debt to Equity History and Analysis

Debt Level: LPX's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: LPX's debt to equity ratio has reduced from 71.6% to 23.8% over the past 5 years.

Debt Coverage: LPX's debt is well covered by operating cash flow (291.4%).

Interest Coverage: LPX's interest payments on its debt are well covered by EBIT (69.6x coverage).


Balance Sheet


Dividend

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

1.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LPX's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: LPX's dividend (1.15%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 (8.3%), 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 (10.8% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Brad Southern (61 yo)

4yrs

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 ($USD7.49M) is about average for companies of similar size in the US market ($USD6.51M).

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 (2.5 years average tenure).


Board Members

Experienced Board: LPX's board of directors are not considered experienced ( 2.4 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: Insufficient data to determine if 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: 1972
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: US$5.669b
  • Shares outstanding: 102.25m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:15
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
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.