NYSE:LPX

Stock Analysis Report

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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

-1.3%

LPX

-3.1%

US Forestry

1.3%

US Market


1 Year Return

27.6%

LPX

0.9%

US Forestry

14.9%

US Market

Return vs Industry: LPX exceeded the US Forestry industry which returned 0.2% over the past year.

Return vs Market: LPX exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

LPXIndustryMarket
7 Day-1.3%-3.1%1.3%
30 Day24.3%11.2%4.7%
90 Day61.5%25.8%17.1%
1 Year30.5%27.6%4.1%0.9%17.3%14.9%
3 Year34.7%27.9%2.1%-6.4%38.9%29.9%
5 Year101.2%90.9%6.1%-6.9%71.3%52.8%

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?

3745.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LPX ($31.67) is trading above our estimate of fair value ($15.78)

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 (3745.3x) compared to the US Forestry industry average (16.7x).

PE vs Market: LPX is poor value based on its PE Ratio (3745.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LPX is poor value based on its PEG Ratio (36.6x)


Price to Book Ratio

PB vs Industry: LPX is overvalued based on its PB Ratio (3.6x) compared to the US Forestry industry average (1.1x).


Next Steps

Future Growth

How is Louisiana-Pacific forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

102.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPX's forecast earnings growth (102.2% per year) is above the savings rate (2.2%).

Earnings vs Market: LPX's earnings (102.2% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LPX's revenue (11.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: LPX's revenue (11.5% 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?

1.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LPX's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: LPX's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (4.51%).


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?

1.6yrs

Average management tenure


CEO

Brad Southern (60 yo)

3.08yrs

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 ($USD5.59M) is about average for companies of similar size in the US market ($USD5.78M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Southern
Chairman & CEO3.08yrsUS$5.59m0.13%
$ 4.5m
Alan J. Haughie
Executive VP & CFO1.58yrsUS$1.78m0.027%
$ 943.8k
Michael Sims
Senior Vice President of Sales5.33yrsUS$1.19m0.039%
$ 1.4m
Neil Sherman
Executive Vice President of the Siding Business5.42yrsUS$1.39m0.037%
$ 1.3m
Jason Ringblom
Executive Vice President of Oriented Strand Board3.58yrsUS$1.54m0.021%
$ 738.1k
Derek Doyle
VP, Controller & Chief Accounting Officer0.83yrno 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 Relations0.83yrno datano data
Nicole Daniel
Senior VP0.92yrno datano data
Robin Everhart
Senior VP and Chief Human Resources & Transformation Officer1.33yrsno datano data
Michael Blosser
Senior Vice President of Manufacturing Servicesno datano datano data

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: LPX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Southern
Chairman & CEO3.08yrsUS$5.59m0.13%
$ 4.5m
Dustan McCoy
Lead Independent Director0.25yrUS$217.50k0.038%
$ 1.4m
Kurt Landgraf
Independent Director15.17yrsUS$217.50k0.052%
$ 1.8m
Stephen Macadam
Independent Director1.5yrsUS$194.06k0.013%
$ 477.2k
F. Grasberger
Independent Director1.17yrsUS$153.30kno data
Lizanne Gottung
Independent Director13.75yrsUS$212.50k0.027%
$ 962.0k
Ozey Horton
Independent Director3.92yrsUS$202.50k0.016%
$ 581.0k
Tracy Embree
Independent Director4.5yrsUS$202.50k0.013%
$ 468.7k

2.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LPX's board of directors are not considered experienced ( 2.7 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$3.554b
  • 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

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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:06
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
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.