LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - US5463471053 - Common Stock
97.34 USD
-1.73 (-1.75%)
98 USD
+0.66 (+0.68%)
We assign a fundamental rating of 6 out of 10 to LPX. LPX was compared to 9 industry peers in the Paper & Forest Products industry. Both the health and profitability get an excellent rating, making LPX a very profitable company, without any liquidiy or solvency issues. LPX has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
LPX had positive earnings in the past year.
LPX had a positive operating cash flow in the past year.
LPX had positive earnings in each of the past 5 years.
In the past 5 years LPX always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.18%, LPX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
LPX's Return On Equity of 17.05% is fine compared to the rest of the industry. LPX outperforms 66.67% of its industry peers.
LPX has a better Return On Invested Capital (13.03%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LPX is significantly above the industry average of 5.72%.
The 3 year average ROIC (24.24%) for LPX is well above the current ROIC(13.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 17.05% | ||
| ROIC | 13.03% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.24%
ROIC(5y)33.4%
1.3 Margins
With a decent Profit Margin value of 10.31%, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of LPX has declined.
LPX has a better Operating Margin (14.65%) than 88.89% of its industry peers.
In the last couple of years the Operating Margin of LPX has grown nicely.
LPX has a better Gross Margin (25.30%) than 77.78% of its industry peers.
In the last couple of years the Gross Margin of LPX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.65% | ||
| PM (TTM) | 10.31% | ||
| GM | 25.3% |
OM growth 3Y-25.58%
OM growth 5Y44.59%
PM growth 3Y-25.95%
PM growth 5YN/A
GM growth 3Y-17.4%
GM growth 5Y16.59%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LPX is creating value.
The number of shares outstanding for LPX has been reduced compared to 1 year ago.
Compared to 5 years ago, LPX has less shares outstanding
LPX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.20 indicates that LPX is not in any danger for bankruptcy at the moment.
LPX's Altman-Z score of 7.20 is amongst the best of the industry. LPX outperforms 100.00% of its industry peers.
The Debt to FCF ratio of LPX is 1.25, which is an excellent value as it means it would take LPX, only 1.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LPX (1.25) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that LPX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.20, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 7.2 |
ROIC/WACC1.51
WACC8.63%
2.3 Liquidity
A Current Ratio of 2.84 indicates that LPX has no problem at all paying its short term obligations.
LPX has a better Current ratio (2.84) than 66.67% of its industry peers.
LPX has a Quick Ratio of 1.67. This is a normal value and indicates that LPX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.67, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
LPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.20%.
LPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.82% yearly.
LPX shows a decrease in Revenue. In the last year, the revenue decreased by -1.47%.
LPX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
EPS 1Y (TTM)-24.2%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-52.63%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-7.25%
3.2 Future
Based on estimates for the next years, LPX will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
Based on estimates for the next years, LPX will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y-45.22%
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
EPS Next 5Y6.22%
Revenue Next Year-4.51%
Revenue Next 2Y1.5%
Revenue Next 3Y3.32%
Revenue Next 5Y4.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
LPX is valuated rather expensively with a Price/Earnings ratio of 21.58.
Based on the Price/Earnings ratio, LPX is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
LPX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.70, the valuation of LPX can be described as rather expensive.
66.67% of the companies in the same industry are more expensive than LPX, based on the Price/Forward Earnings ratio.
LPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 20.7 |
4.2 Price Multiples
77.78% of the companies in the same industry are cheaper than LPX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.38 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
The excellent profitability rating of LPX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.21%.
Compared to an average industry Dividend Yield of 3.59, LPX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of LPX is nicely growing with an annual growth rate of 14.78%!
LPX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of LPX decreased recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
25.59% of the earnings are spent on dividend by LPX. This is a low number and sustainable payout ratio.
LPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.59%
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
97.34
-1.73 (-1.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change2.43%
Ins Owners1.45%
Ins Owner Change2.03%
Market Cap6.78B
Analysts67.14
Price Target108.12 (11.07%)
Short Float %4.04%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP25.59%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-6.47%
Max EPS beat(2)6.47%
EPS beat(4)3
Avg EPS beat(4)14.03%
Min EPS beat(4)-6.47%
Max EPS beat(4)37.28%
EPS beat(8)7
Avg EPS beat(8)16.42%
EPS beat(12)10
Avg EPS beat(12)57.15%
EPS beat(16)13
Avg EPS beat(16)44.41%
Revenue beat(2)2
Avg Revenue beat(2)1.15%
Min Revenue beat(2)1.06%
Max Revenue beat(2)1.24%
Revenue beat(4)4
Avg Revenue beat(4)2.01%
Min Revenue beat(4)1.03%
Max Revenue beat(4)4.72%
Revenue beat(8)7
Avg Revenue beat(8)2.18%
Revenue beat(12)9
Avg Revenue beat(12)0.23%
Revenue beat(16)9
Avg Revenue beat(16)-2.15%
PT rev (1m)-0.63%
PT rev (3m)-1.55%
EPS NQ rev (1m)-49.18%
EPS NQ rev (3m)-65.99%
EPS NY rev (1m)-27.73%
EPS NY rev (3m)-30.84%
Revenue NQ rev (1m)-7.81%
Revenue NQ rev (3m)-14.59%
Revenue NY rev (1m)-4.05%
Revenue NY rev (3m)-4.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 20.7 | ||
| P/S | 2.35 | ||
| P/FCF | 24.38 | ||
| P/OCF | 13.14 | ||
| P/B | 3.89 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 12.22 |
EPS(TTM)4.51
EY4.63%
EPS(NY)4.7
Fwd EY4.83%
FCF(TTM)3.99
FCFY4.1%
OCF(TTM)7.41
OCFY7.61%
SpS41.37
BVpS25.01
TBVpS24.3
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 17.05% | ||
| ROCE | 18.03% | ||
| ROIC | 13.03% | ||
| ROICexc | 15.19% | ||
| ROICexgc | 15.58% | ||
| OM | 14.65% | ||
| PM (TTM) | 10.31% | ||
| GM | 25.3% | ||
| FCFM | 9.65% |
ROA(3y)23.29%
ROA(5y)31.31%
ROE(3y)37.45%
ROE(5y)52.86%
ROIC(3y)24.24%
ROIC(5y)33.4%
ROICexc(3y)28.99%
ROICexc(5y)41.73%
ROICexgc(3y)30.19%
ROICexgc(5y)44.61%
ROCE(3y)33.53%
ROCE(5y)46.2%
ROICexcg growth 3Y-39.19%
ROICexcg growth 5Y40.96%
ROICexc growth 3Y-38.01%
ROICexc growth 5Y42.51%
OM growth 3Y-25.58%
OM growth 5Y44.59%
PM growth 3Y-25.95%
PM growth 5YN/A
GM growth 3Y-17.4%
GM growth 5Y16.59%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 177.61% | ||
| Cap/Sales | 8.26% | ||
| Interest Coverage | 30.14 | ||
| Cash Conversion | 92.81% | ||
| Profit Quality | 93.6% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 7.2 |
F-Score5
WACC8.63%
ROIC/WACC1.51
Cap/Depr(3y)261.32%
Cap/Depr(5y)213.35%
Cap/Sales(3y)10.55%
Cap/Sales(5y)8.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.2%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-52.63%
EPS Next Y-45.22%
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
EPS Next 5Y6.22%
Revenue 1Y (TTM)-1.47%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-7.25%
Revenue Next Year-4.51%
Revenue Next 2Y1.5%
Revenue Next 3Y3.32%
Revenue Next 5Y4.11%
EBIT growth 1Y-28.84%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year-1.85%
EBIT Next 3Y8.86%
EBIT Next 5Y11.54%
FCF growth 1Y240.4%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y150.49%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%