LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - New York Stock Exchange, Inc. - US5463471053 - Common Stock - Currency: USD
LPX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. LPX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LPX has a decent growth rate and is not valued too expensively. This makes LPX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LPX was profitable.
LPX had a positive operating cash flow in the past year.
LPX had positive earnings in each of the past 5 years.
Each year in the past 5 years LPX had a positive operating cash flow.
1.2 Ratios
LPX's Return On Assets of 15.68% is amongst the best of the industry. LPX outperforms 100.00% of its industry peers.
LPX's Return On Equity of 23.82% is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
LPX has a better Return On Invested Capital (16.39%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPX is significantly above the industry average of 8.64%.
The last Return On Invested Capital (16.39%) for LPX is well below the 3 year average (24.24%), which needs to be investigated, but indicates that LPX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.68% | ||
| ROE | 23.82% | ||
| ROIC | 16.39% |
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
The Profit Margin of LPX (13.71%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of LPX has declined.
The Operating Margin of LPX (17.69%) is better than 88.89% of its industry peers.
LPX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 27.69%, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of LPX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.69% | ||
| PM (TTM) | 13.71% | ||
| GM | 27.69% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LPX is creating value.
Compared to 1 year ago, LPX has less shares outstanding
The number of shares outstanding for LPX has been reduced compared to 5 years ago.
LPX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.23 indicates that LPX is not in any danger for bankruptcy at the moment.
The Altman-Z score of LPX (7.23) is better than 100.00% of its industry peers.
LPX has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of all of its debts.
The Debt to FCF ratio of LPX (0.97) is better than 100.00% of its industry peers.
LPX has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
LPX has a Debt to Equity ratio of 0.21. This is in the better half of the industry: LPX outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 7.23 |
ROIC/WACC1.88
WACC8.72%
2.3 Liquidity
LPX has a Current Ratio of 3.03. This indicates that LPX is financially healthy and has no problem in meeting its short term obligations.
LPX's Current ratio of 3.03 is amongst the best of the industry. LPX outperforms 88.89% of its industry peers.
A Quick Ratio of 1.59 indicates that LPX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.59, LPX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.21% over the past year.
Measured over the past years, LPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.82% on average per year.
Looking at the last year, LPX shows a quite strong growth in Revenue. The Revenue has grown by 8.05% in the last year.
Measured over the past years, LPX shows a small growth in Revenue. The Revenue has been growing by 4.95% on average per year.
EPS 1Y (TTM)27.21%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-16.99%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%0%
3.2 Future
LPX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.81% yearly.
The Revenue is expected to grow by 5.25% on average over the next years.
EPS Next Y-24.2%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
EPS Next 5Y6.81%
Revenue Next Year-0.47%
Revenue Next 2Y3.22%
Revenue Next 3Y4.22%
Revenue Next 5Y5.25%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LPX is valuated correctly with a Price/Earnings ratio of 15.95.
Based on the Price/Earnings ratio, LPX is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.93, LPX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.18, LPX is valued correctly.
LPX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LPX to the average of the S&P500 Index (37.78), we can say LPX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPX is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as LPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.39 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
LPX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.27%.
LPX's Dividend Yield is comparable with the industry average which is at 3.18.
With a Dividend Yield of 1.27, LPX pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
On average, the dividend of LPX grows each year by 14.78%, which is quite nice.
LPX has paid a dividend for at least 10 years, which is a reliable track record.
LPX has decreased its dividend recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
18.61% 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.
DP18.61%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
89.46
-0.38 (-0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners85.62%
Inst Owner Change3.97%
Ins Owners1.43%
Ins Owner Change4.36%
Market Cap6.23B
Analysts67.14
Price Target108.8 (21.62%)
Short Float %3.82%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP18.61%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.66%
Min EPS beat(2)6.47%
Max EPS beat(2)18.86%
EPS beat(4)4
Avg EPS beat(4)17.47%
Min EPS beat(4)6.47%
Max EPS beat(4)37.28%
EPS beat(8)7
Avg EPS beat(8)15.01%
EPS beat(12)10
Avg EPS beat(12)57.21%
EPS beat(16)14
Avg EPS beat(16)45.34%
Revenue beat(2)2
Avg Revenue beat(2)1.05%
Min Revenue beat(2)1.03%
Max Revenue beat(2)1.06%
Revenue beat(4)4
Avg Revenue beat(4)1.98%
Min Revenue beat(4)1.03%
Max Revenue beat(4)4.72%
Revenue beat(8)6
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-2.47%
PT rev (1m)-0.93%
PT rev (3m)-2.04%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-31.79%
EPS NY rev (1m)-1.68%
EPS NY rev (3m)-18.32%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.95 | ||
| Fwd PE | 16.18 | ||
| P/S | 2.12 | ||
| P/FCF | 17.39 | ||
| P/OCF | 11.04 | ||
| P/B | 3.68 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 9.76 |
EPS(TTM)5.61
EY6.27%
EPS(NY)5.53
Fwd EY6.18%
FCF(TTM)5.14
FCFY5.75%
OCF(TTM)8.1
OCFY9.06%
SpS42.25
BVpS24.31
TBVpS23.55
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.68% | ||
| ROE | 23.82% | ||
| ROCE | 22.68% | ||
| ROIC | 16.39% | ||
| ROICexc | 18.45% | ||
| ROICexgc | 18.95% | ||
| OM | 17.69% | ||
| PM (TTM) | 13.71% | ||
| GM | 27.69% | ||
| FCFM | 12.18% |
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-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.97 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 158.46% | ||
| Cap/Sales | 7.01% | ||
| Interest Coverage | 37.14 | ||
| Cash Conversion | 86.77% | ||
| Profit Quality | 88.83% | ||
| Current Ratio | 3.03 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 7.23 |
F-Score8
WACC8.72%
ROIC/WACC1.88
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)27.21%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-16.99%
EPS Next Y-24.2%
EPS Next 2Y-2.94%
EPS Next 3Y2.42%
EPS Next 5Y6.81%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%0%
Revenue Next Year-0.47%
Revenue Next 2Y3.22%
Revenue Next 3Y4.22%
Revenue Next 5Y5.25%
EBIT growth 1Y16.07%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year6.11%
EBIT Next 3Y11.03%
EBIT Next 5Y11.54%
FCF growth 1Y115.66%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y-6%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%