NYSE:LPX

Stock Analysis Report

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.


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

5.6%

LPX

-2.1%

US Forestry

2.4%

US Market


1 Year Return

-36.1%

LPX

-39.5%

US Forestry

-10.0%

US Market

Return vs Industry: LPX exceeded the US Forestry industry which returned -42% over the past year.

Return vs Market: LPX underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

LPXIndustryMarket
7 Day5.6%-2.1%2.4%
30 Day-32.7%-28.9%-11.0%
90 Day-48.6%-38.9%-19.4%
1 Year-34.8%-36.1%-37.4%-39.5%-8.1%-10.0%
3 Year-35.2%-38.0%-34.0%-39.3%17.3%9.6%
5 Year1.9%-2.6%-39.2%-46.8%36.1%21.1%

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?

1.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LPX ($15.87) is trading above our estimate of fair value ($14.03)

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


Price To Earnings Ratio

PE vs Industry: LPX is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: LPX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LPX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LPX is overvalued based on its PB Ratio (1.8x) compared to the US Forestry industry average (0.7x).


Next Steps

Future Growth

How is Louisiana-Pacific forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

110.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: LPX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LPX's is expected to become profitable in the next 3 years.

Revenue vs Market: LPX's revenue (6.2% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: LPX's revenue (6.2% 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 high in 3 years time (22.4%)


Next Steps

Past Performance

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

42.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LPX is currently unprofitable.

Growing Profit Margin: LPX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LPX is unprofitable, but has reduced losses over the past 5 years at a rate of 42.2% per year.

Accelerating Growth: Unable to compare LPX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LPX is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-9.6%).


Return on Equity

High ROE: LPX has a negative Return on Equity (-1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Louisiana-Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: LPX's short term assets ($619.0M) exceed its short term liabilities ($244.0M).

Long Term Liabilities: LPX's short term assets ($619.0M) exceed its long term liabilities ($590.0M).


Debt to Equity History and Analysis

Debt Level: LPX's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: LPX's debt to equity ratio has reduced from 67.9% to 34.7% over the past 5 years.

Debt Coverage: LPX's debt is well covered by operating cash flow (45.8%).

Interest Coverage: LPX is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LPX's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: LPX's dividend (3.65%) is low compared to the top 25% of dividend payers in the US market (5.66%).


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: LPX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: LPX's dividends in 3 years are forecast to be well covered by earnings (35.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Brad Southern (59yo)

2.75s

Tenure

US$5,357,255

Compensation

Mr. William Bradley Southern, also known as Brad, has been Chief Executive Officer of Louisiana-pacific Corp. since July 1, 2017. Mr. Southern serves as Director at Astec Industries Inc since October 25, 2 ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD5.36M) is about average for companies of similar size in the US market ($USD4.74M).

Compensation vs Earnings: Brad's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Southern
CEO & Director2.75yrsUS$5.36m0.12% $2.1m
Neil Sherman
Executive Vice President of the Siding Business5.08yrsUS$1.17m0.037% $664.2k
Jason Ringblom
Executive Vice President of Oriented Strand Board3.25yrsUS$1.19m0.0052% $92.9k
Alan J. Haughie
Executive VP & CFO1.25yrsno datano data
Derek Doyle
VP, Controller & Chief Accounting Officer0.50yrno datano data
David Crowe
VP of Corporate Engineering & Director of Technologyno datano datano data
Don Walker
VP & Chief Information Officerno datano datano data
Aaron Howald
Director of Investor Relations0.50yrno datano data
Nicole Daniel
Senior VP0.58yrno datano data
Michael Sims
Senior Vice President of Corporate Marketing & Business Development5yrsUS$1.19m0.034% $612.1k

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: LPX's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Southern
CEO & Director2.75yrsUS$5.36m0.12% $2.1m
Dustan McCoy
Independent Director17.42yrsUS$215.00k0.031% $550.0k
Kurt Landgraf
Independent Director14.83yrsUS$215.00k0.047% $845.1k
Stephen Macadam
Director1.17yrsno data0.0042% $75.7k
E. Cook
Independent Chairman of the Board15.42yrsUS$437.50k0.040% $708.7k
F. Grasberger
Director0.83yrno datano data
Lizanne Gottung
Independent Director13.42yrsUS$210.00k0.022% $397.5k
Ozey Horton
Independent Director3.58yrsUS$200.00k0.012% $207.7k
Tracy Embree
Independent Director4.17yrsUS$200.00k0.013% $235.9k

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: LPX's board of directors are considered experienced (4.2 years average tenure).


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$1.786b
  • Shares outstanding: 112.02m
  • Website: https://www.lpcorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
LP3DB (Deutsche Boerse AG)YesCommon StockDEEURDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 03:16
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.