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

Fundamentals

Flawless balance sheet with acceptable 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


Market Performance


7 Day Return

10.3%

LPX

5.6%

US Forestry

0.4%

US Market


1 Year Return

25.9%

LPX

-6.0%

US Forestry

6.9%

US Market

Return vs Industry: LPX exceeded the US Forestry industry which returned -6% over the past year.

Return vs Market: LPX exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

LPXIndustryMarket
7 Day10.3%5.6%0.4%
30 Day9.1%2.4%-1.1%
90 Day5.5%-2.1%-0.5%
1 Year28.7%25.9%-2.8%-6.0%9.3%6.9%
3 Year53.1%47.7%21.3%12.8%45.8%36.4%
5 Year91.7%85.0%8.3%-3.2%62.9%45.1%

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?

19.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: LPX ($27.45) is trading above our estimate of fair value ($8.87)

Significantly Undervalued: 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 (19.9x) compared to the Forestry industry average (9.8x).

PE vs Market: LPX is poor value based on its PE Ratio (19.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: LPX is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LPX is overvalued based on its PB Ratio (2.7x) compared to the US Forestry industry average (1x).


Next Steps

Future Growth

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

43.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPX's forecast earnings growth (43.8% per year) is above the savings rate (2.7%).

Earnings vs Market: LPX's earnings (43.8% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: LPX's revenue (7.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LPX's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

58.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LPX's earnings have grown significantly by 58.2% per year over the past 5 years.

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 (-63%) over the past year, making it difficult to compare to the Forestry industry average (88%).


Return on Equity

High ROE: LPX's Return on Equity (14.2%) is considered low.


Return on Assets

ROA vs Industry: LPX has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: LPX has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Louisiana-Pacific's financial position?


Financial Position Analysis

Short Term Liabilities: LPX's short term assets ($829.0M) exceeds its short term liabilities ($229.0M)

Long Term Liabilities: LPX's short term assets (829.0M) exceeds its long term liabilities (570.0M)


Debt to Equity History and Analysis

Debt Level: LPX's debt to equity ratio (27%) is considered satisfactory

Reducing Debt: LPX's debt to equity ratio has reduced from 62.7% to 27% over the past 5 years.

Debt Coverage: LPX's debt is well covered by operating cash flow (69.5%).

Interest Coverage: LPX's interest payments on its debt are well covered by EBIT (1225.5x coverage).


Balance Sheet

Inventory Level: LPX has a high level of physical assets or inventory.

Debt Coverage by Assets: LPX's debt is covered by short term assets (assets are 2.375350x debt).


Next Steps

Dividend

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

1.97%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LPX's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LPX's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 reasonably low payout ratio (38.5%), LPX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LPX's dividends in 3 years are forecast to be well covered by earnings (28.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Brad Southern (59yo)

2.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Brad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.5yrs

Average Tenure

56yo

Average Age

Experienced Management: LPX's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: LPX's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Alan J. Haughie (55yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
  • Nicole Daniel (50yo)

    Senior VP

    • Tenure: 0.08yrs
  • Brad Southern (59yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$5.36m
  • Dave Crowe

    VP of Corporate Engineering & Director of Technology

    • Tenure: 0yrs
  • Mike Sims (61yo)

    Senior Vice President of Corporate Marketing & Business Development

    • Tenure: 4.5yrs
    • Compensation: US$1.19m
  • Neil Sherman (56yo)

    Executive Vice President of the Siding Business

    • Tenure: 4.6yrs
    • Compensation: US$1.17m
  • Becky Barckley (56yo)

    Controller of Financial Reporting & Principal Accounting Officer

    • Tenure: 0yrs
  • Jason Ringblom (36yo)

    Executive Vice President

    • Tenure: 2.8yrs
    • Compensation: US$1.19m
  • Don Walker

    VP & Chief Information Officer

    • Tenure: 0yrs
  • Aaron Howald

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dustan McCoy (69yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$215.00k
  • Kurt Landgraf (72yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$215.00k
  • Steve Macadam (58yo)

    Director

    • Tenure: 0.7yrs
  • E. Cook (74yo)

    Independent Chairman of the Board

    • Tenure: 14.9yrs
    • Compensation: US$437.50k
  • Nick Grasberger (55yo)

    Director

    • Tenure: 0.3yrs
  • Liz Gottung (62yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$210.00k
  • Brad Southern (59yo)

    CEO & Director

    • Tenure: 2.3yrs
    • Compensation: US$5.36m
  • Ozey Horton (68yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$200.00k
  • Tracy Embree (45yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$200.00k

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$3.272b
  • Shares outstanding: 119.19m
  • Website: https://www.lpcorp.com

Number of Employees


Location

  • Louisiana-Pacific Corporation
  • 414 Union Street
  • Suite 2000
  • Nashville
  • Tennessee
  • 37219
  • 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 also marke ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.