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Louisiana-Pacific

NYSE:LPX
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LPX
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. The last earnings update was 76 days ago. More info.


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LPX Share Price and Events
7 Day Returns
-0.6%
NYSE:LPX
1.7%
US Forestry
-1.2%
US Market
1 Year Returns
-1%
NYSE:LPX
-9.9%
US Forestry
3.3%
US Market
LPX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Louisiana-Pacific (LPX) -0.6% 2.8% 8.3% -1% 28.9% 87.3%
US Forestry 1.7% 0.2% -3.7% -9.9% 12.9% 3%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • LPX outperformed the Forestry industry which returned -9.9% over the past year.
  • LPX underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
LPX
Industry
5yr Volatility vs Market

LPX Value

 Is Louisiana-Pacific undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Louisiana-Pacific to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Louisiana-Pacific.

NYSE:LPX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LPX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Forestry Unlevered Beta Simply Wall St/ S&P Global 1.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.342 (1 + (1- 21%) (11.65%))
1.312
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.31
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.312 * 5.96%)
10.55%

Discounted Cash Flow Calculation for NYSE:LPX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Louisiana-Pacific is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LPX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.55%)
2020 221.20 Analyst x4 200.10
2021 198.62 Est @ -10.21% 162.53
2022 186.06 Est @ -6.33% 137.72
2023 179.34 Est @ -3.61% 120.09
2024 176.28 Est @ -1.71% 106.78
2025 175.62 Est @ -0.38% 96.23
2026 176.59 Est @ 0.56% 87.53
2027 178.73 Est @ 1.21% 80.13
2028 181.70 Est @ 1.66% 73.70
2029 185.31 Est @ 1.98% 67.99
Present value of next 10 years cash flows $1,132.79
NYSE:LPX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $185.31 × (1 + 2.73%) ÷ (10.55% – 2.73%)
$2,435.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,435.33 ÷ (1 + 10.55%)10
$893.50
NYSE:LPX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,132.79 + $893.50
$2,026.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,026.28 / 123.44
$16.41
NYSE:LPX Discount to Share Price
Calculation Result
Value per share (USD) From above. $16.41
Current discount Discount to share price of $26.01
= -1 x ($26.01 - $16.41) / $16.41
-58.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Louisiana-Pacific is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Louisiana-Pacific's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Louisiana-Pacific's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LPX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.37
NYSE:LPX Share Price ** NYSE (2019-07-22) in USD $26.01
United States of America Forestry Industry PE Ratio Median Figure of 11 Publicly-Listed Forestry Companies 9.84x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Louisiana-Pacific.

NYSE:LPX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LPX Share Price ÷ EPS (both in USD)

= 26.01 ÷ 2.37

10.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Louisiana-Pacific is overvalued based on earnings compared to the US Forestry industry average.
  • Louisiana-Pacific is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Louisiana-Pacific's expected growth come at a high price?
Raw Data
NYSE:LPX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
12.8%per year
United States of America Forestry Industry PEG Ratio Median Figure of 8 Publicly-Listed Forestry Companies 0.92x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:LPX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.97x ÷ 12.8%

0.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Louisiana-Pacific is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Louisiana-Pacific's assets?
Raw Data
NYSE:LPX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $10.31
NYSE:LPX Share Price * NYSE (2019-07-22) in USD $26.01
United States of America Forestry Industry PB Ratio Median Figure of 15 Publicly-Listed Forestry Companies 1.33x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NYSE:LPX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LPX Share Price ÷ Book Value per Share (both in USD)

= 26.01 ÷ 10.31

2.52x

* Primary Listing of Louisiana-Pacific.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Louisiana-Pacific is overvalued based on assets compared to the US Forestry industry average.
X
Value checks
We assess Louisiana-Pacific's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Forestry industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Forestry industry average (and greater than 0)? (1 check)
  5. Louisiana-Pacific has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LPX Future Performance

 How is Louisiana-Pacific expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Louisiana-Pacific expected to grow at an attractive rate?
  • Louisiana-Pacific's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Louisiana-Pacific's earnings growth is positive but not above the United States of America market average.
  • Louisiana-Pacific's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LPX Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LPX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 12.8%
NYSE:LPX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6%
United States of America Forestry Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Forestry Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LPX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LPX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 2,786 364 257 7
2019-12-31 2,541 259 150 7
NYSE:LPX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,719 426 331
2018-12-31 2,828 511 399
2018-09-30 2,949 588 513
2018-06-30 2,931 580 500
2018-03-31 2,814 484 431
2017-12-31 2,734 474 391
2017-09-30 2,573 407 303
2017-06-30 2,451 400 258
2017-03-31 2,340 368 195
2016-12-31 2,233 342 150
2016-09-30 2,146 271 100
2016-06-30 2,015 136 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Louisiana-Pacific's earnings are expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).
  • Louisiana-Pacific's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LPX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Louisiana-Pacific Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LPX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.21 2.80 1.56 5.00
2019-12-31 1.18 1.43 1.02 5.00
NYSE:LPX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.37
2018-12-31 2.79
2018-09-30 3.56
2018-06-30 3.45
2018-03-31 2.98
2017-12-31 2.71
2017-09-30 2.10
2017-06-30 1.79
2017-03-31 1.36
2016-12-31 1.05
2016-09-30 0.70
2016-06-30 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Louisiana-Pacific will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Louisiana-Pacific's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Louisiana-Pacific has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LPX Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Louisiana-Pacific's growth in the last year to its industry (Forestry).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Louisiana-Pacific has delivered over 20% year on year earnings growth in the past 5 years.
  • Louisiana-Pacific's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Louisiana-Pacific's 1-year earnings growth is negative, it can't be compared to the US Forestry industry average.
Earnings and Revenue History
Louisiana-Pacific's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Louisiana-Pacific Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LPX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,719.00 330.80 214.40
2018-12-31 2,828.00 398.80 210.40
2018-09-30 2,949.20 512.80 202.90
2018-06-30 2,930.70 499.50 204.70
2018-03-31 2,814.00 431.10 201.80
2017-12-31 2,733.90 391.10 197.50
2017-09-30 2,573.30 303.00 197.90
2017-06-30 2,451.40 257.80 190.70
2017-03-31 2,339.70 195.00 190.00
2016-12-31 2,233.40 150.30 188.10
2016-09-30 2,146.30 100.20 173.70
2016-06-30 2,014.80 10.00 165.00
2016-03-31 1,925.40 -41.20 156.40
2015-12-31 1,892.50 -86.00 152.80
2015-09-30 1,883.10 -121.60 155.70
2015-06-30 1,936.30 -115.30 149.30
2015-03-31 1,961.80 -93.70 147.30
2014-12-31 1,934.80 -73.40 149.50
2014-09-30 1,961.00 -49.50 155.30
2014-06-30 1,950.30 6.20 156.80
2014-03-31 1,998.80 98.20 155.90
2013-12-31 2,085.20 177.40 150.20
2013-09-30 2,059.40 245.10 139.90
2013-06-30 2,014.10 238.70 137.00
2013-03-31 1,860.80 105.70 132.30
2012-12-31 1,691.20 29.50 128.40
2012-09-30 1,549.50 -75.90 120.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Louisiana-Pacific has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Louisiana-Pacific used its assets more efficiently than the US Forestry industry average last year based on Return on Assets.
  • Louisiana-Pacific has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Louisiana-Pacific's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Forestry industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Louisiana-Pacific has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LPX Health

 How is Louisiana-Pacific's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Louisiana-Pacific's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Louisiana-Pacific is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Louisiana-Pacific's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Louisiana-Pacific's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Louisiana-Pacific Company Filings, last reported 3 months ago.

NYSE:LPX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,287.00 350.00 361.00
2018-12-31 1,700.20 351.90 878.40
2018-09-30 1,811.40 353.80 986.70
2018-06-30 1,765.80 375.70 1,000.90
2018-03-31 1,672.40 376.20 895.70
2017-12-31 1,604.50 375.90 928.00
2017-09-30 1,465.30 375.50 848.70
2017-06-30 1,348.40 376.10 740.00
2017-03-31 1,254.10 376.20 649.50
2016-12-31 1,195.70 377.00 659.30
2016-09-30 1,152.80 832.40 559.70
2016-06-30 1,084.30 747.30 474.80
2016-03-31 1,051.80 753.90 404.20
2015-12-31 1,017.00 753.90 434.70
2015-09-30 1,023.10 753.90 447.70
2015-06-30 1,056.80 755.80 481.00
2015-03-31 1,075.10 760.10 468.30
2014-12-31 1,115.80 757.20 532.70
2014-09-30 1,191.70 761.50 579.90
2014-06-30 1,217.80 763.60 554.70
2014-03-31 1,211.70 763.50 551.70
2013-12-31 1,226.30 765.00 656.80
2013-09-30 1,223.80 765.60 669.50
2013-06-30 1,182.50 874.80 630.70
2013-03-31 1,092.90 880.10 560.50
2012-12-31 1,033.80 880.50 560.90
2012-09-30 992.90 891.10 490.50
  • Louisiana-Pacific's level of debt (27.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (63% vs 27.4% today).
  • Debt is well covered by operating cash flow (120.9%, greater than 20% of total debt).
  • Louisiana-Pacific earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Louisiana-Pacific's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Louisiana-Pacific has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LPX Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.08%
Current annual income from Louisiana-Pacific dividends. Estimated to be 2.09% next year.
If you bought $2,000 of Louisiana-Pacific shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Louisiana-Pacific's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Louisiana-Pacific's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LPX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Forestry Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LPX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.55 5.00
2019-12-31 0.54 5.00
NYSE:LPX Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.540 2.177
2019-02-14 0.540 2.166
2019-02-13 0.540 2.029
2018-11-02 0.520 2.271
2018-08-03 0.520 1.967
2018-05-04 0.520 1.862
2018-02-13 0.520 1.787
2010-05-10 0.000 0.000
2010-03-01 0.000 0.000
2010-02-10 0.000 0.000
2009-11-04 0.000 0.000
2009-11-03 0.000 0.000
2009-08-05 0.000 0.000
2009-08-04 0.000 0.000
2009-05-06 0.000 0.000
2009-05-05 0.000 0.000
2009-02-27 0.000 0.000
2008-08-04 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Louisiana-Pacific has stable dividend payments.
  • Louisiana-Pacific only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Louisiana-Pacific's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Louisiana-Pacific's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Louisiana-Pacific afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Louisiana-Pacific has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LPX Management

 What is the CEO of Louisiana-Pacific's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brad Southern
COMPENSATION $5,357,255
AGE 59
TENURE AS CEO 2 years
CEO Bio

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, 2018. Mr. Southern served as the Chief Operating Officer and Executive Vice President of Louisiana-pacific Corp. from November 1, 2016 to June 30, 2017. Mr. Southern began his career with LP in 1999 and has held various leadership positions throughout his nearly 20-year tenure with the company. Mr. Southern served as an Executive Vice President of Oriented Strand Board at Louisiana-pacific Corp. from March 2015 to November 01, 2016 and served as its General Manager of Oriented Strand Board. Mr. Southern served as Senior Vice President of Siding of Louisiana-pacific Corp. from May 2012 to March 2015. He served as Senior Vice President and General Manager of Siding of Louisiana-pacific Corp. Mr. Southern served as Vice President of Louisiana-pacific Corp. Mr. Southern was vice president of specialty operations. Mr. Southern began his career with MacMillan Bloedel as a forester and progressed through a variety of jobs in forestry, strategic planning, finance, accounting and plant management. He has been a Director of Louisiana-Pacific Corporation since July 12, 2017. Mr. Southern has a B.S. in Forest Resource and a M.S. in Forest Resources, both from the University of Georgia.

CEO Compensation
  • Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Brad's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Louisiana-Pacific management team in years:

2.3
Average Tenure
56
Average Age
  • The tenure for the Louisiana-Pacific management team is about average.
Management Team

Brad Southern

TITLE
CEO & Director
COMPENSATION
$5M
AGE
59
TENURE
2 yrs

Mike Kinney

TITLE
Director of Investor Relations & Treasurer
COMPENSATION
$1M
AGE
61

Neil Sherman

TITLE
Executive Vice President of the Siding Business
COMPENSATION
$1M
AGE
56
TENURE
4.3 yrs

Jason Ringblom

TITLE
Executive Vice President
COMPENSATION
$1M
AGE
36
TENURE
2.5 yrs

Alan J. Haughie

TITLE
Executive VP & CFO
AGE
55
TENURE
0.5 yrs

Becky Barckley

TITLE
Controller of Financial Reporting & Principal Accounting Officer
AGE
56

Dave Crowe

TITLE
VP of Corporate Engineering & Director of Technology

Don Walker

TITLE
VP & Chief Information Officer

Joseph Martin

TITLE
Interim General Counsel & Secretary
TENURE
0.2 yrs

Mike Sims

TITLE
COMPENSATION
$1M
AGE
61
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Louisiana-Pacific board of directors in years:

3.4
Average Tenure
62
Average Age
  • The tenure for the Louisiana-Pacific board of directors is about average.
Board of Directors

E. Cook

TITLE
Chairman of the Board
COMPENSATION
$438K
AGE
74
TENURE
14.7 yrs

Brad Southern

TITLE
CEO & Director
COMPENSATION
$5M
AGE
59
TENURE
2.5 yrs

Dustan McCoy

TITLE
Independent Director
COMPENSATION
$215K
AGE
69
TENURE
16.7 yrs

Kurt Landgraf

TITLE
Director
COMPENSATION
$215K
AGE
72
TENURE
14.1 yrs

Liz Gottung

TITLE
Independent Director
COMPENSATION
$210K
AGE
62
TENURE
12.7 yrs

Tracy Embree

TITLE
Director
COMPENSATION
$200K
AGE
45
TENURE
3.4 yrs

Ozey Horton

TITLE
Director
COMPENSATION
$200K
AGE
68
TENURE
2.8 yrs

Steve Macadam

TITLE
Director
AGE
58
TENURE
0.4 yrs

Nick Grasberger

TITLE
Director
AGE
55
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Aug 18 Sell Lizanne Gottung Individual 16. Aug 18 16. Aug 18 -7,000 $29.25 $-204,750
X
Management checks
We assess Louisiana-Pacific's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Louisiana-Pacific has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LPX News

Simply Wall St News

Is Louisiana-Pacific Corporation's (NYSE:LPX) High P/E Ratio A Problem For Investors?

View our latest analysis for Louisiana-Pacific How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Louisiana-Pacific: P/E of 11.24 = $26.65 ÷ $2.37 (Based on the year to March 2019.) Is A High P/E Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings.

Simply Wall St -

Why Louisiana-Pacific Corporation (NYSE:LPX) Is A Star In A Falling Market

Louisiana-Pacific Corporation is a financially healthy and robust stock with a proven track record of outperformance. … The intrinsic value infographic in our free research report helps visualize whether LPX is currently mispriced by the market. … Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records?

Simply Wall St -

Are Louisiana-Pacific Corporation’s (NYSE:LPX) High Returns Really That Great?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Louisiana-Pacific: 0.24 = US$440m ÷ (US$2.1b - US$238m) (Based on the trailing twelve months to March 2019.) So, Louisiana-Pacific has an ROCE of 24%. … What We Can Learn From Louisiana-Pacific's ROCE Low current liabilities and high ROCE is a good combination, making Louisiana-Pacific look quite interesting.

Simply Wall St -

Is It Worth Buying Louisiana-Pacific Corporation (NYSE:LPX) For Its 2.4% Dividend Yield?

Louisiana-Pacific has only been paying a dividend for a year or so, so investors might be curious about its 2.4% yield. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Does Louisiana-Pacific Corporation (NYSE:LPX) Have A Volatile Share Price?

View our latest analysis for Louisiana-Pacific What we can learn from LPX's beta value Given that it has a beta of 1.36, we can surmise that the Louisiana-Pacific share price has been fairly sensitive to market volatility (over the last 5 years). … That makes it interesting to note that its share price has a history of sensitivity to market volatility. … What this means for you: Beta only tells us that the Louisiana-Pacific share price is sensitive to broader market movements.

Simply Wall St -

Is It Too Late To Consider Buying Louisiana-Pacific Corporation (NYSE:LPX)?

saw significant share price movement during recent months on the NYSE, rising to highs of $26.79 and falling to the lows of $23.67. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Louisiana-Pacific’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Who Has Been Selling Louisiana-Pacific Corporation (NYSE:LPX) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Louisiana-Pacific Corporation (NYSE:LPX). … That means that an insider was selling shares at around the current price of US$24.72. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

Introducing Louisiana-Pacific (NYSE:LPX), A Stock That Climbed 65% In The Last Five Years

For example, long term Louisiana-Pacific Corporation (NYSE:LPX) shareholders have enjoyed a 65% share price rise over the last half decade, well in excess of the market return of around 47% (not including dividends). … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Do You Like Louisiana-Pacific Corporation (NYSE:LPX) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Louisiana-Pacific has a price to earnings ratio of 8.75, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Can Louisiana-Pacific Corporation (NYSE:LPX) Maintain Its Strong Returns?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every $1 worth of shareholders' equity, it generated $0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

LPX Company Info

Description

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 also markets and sells products for use in light industrial and commercial construction applications. 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, manufactured housing producers, distributors, and wholesalers 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.

Details
Name: Louisiana-Pacific Corporation
LPX
Exchange: NYSE
Founded: 1973
$3,210,798,597
123,444,775
Website: http://www.lpcorp.com
Address: Louisiana-Pacific Corporation
414 Union Street,
Suite 2000,
Nashville,
Tennessee, 37219,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LPX Common Stock New York Stock Exchange US USD 29. Dec 1972
DB LP3 Common Stock Deutsche Boerse AG DE EUR 29. Dec 1972
Number of employees
Current staff
Staff numbers
4,900
Louisiana-Pacific employees.
Industry
Forest Products
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:43
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/22
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.