LOUISIANA-PACIFIC CORP (LPX)
US5463471053 - Common Stock
LPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. LPX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LPX has a valuation in line with the averages, but it does not seem to be growing.
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 4 of the past 5 years.
In the past 5 years LPX always reported a positive cash flow from operatings.
1.2 Ratios
LPX has a better Return On Assets (7.30%) than 66.67% of its industry peers.
LPX's Return On Equity of 11.43% is in line compared to the rest of the industry. LPX outperforms 55.56% of its industry peers.
The Return On Invested Capital of LPX (11.30%) is better than 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPX is significantly above the industry average of 11.25%.
The 3 year average ROIC (41.81%) for LPX is well above the current ROIC(11.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 11.43% | ||
| ROIC | 11.3% |
ROA(3y)38.76%
ROA(5y)27.99%
ROE(3y)66.24%
ROE(5y)47.73%
ROIC(3y)41.81%
ROIC(5y)30.97%
1.3 Margins
With a decent Profit Margin value of 6.90%, 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 (13.02%) than 77.78% of its industry peers.
LPX's Operating Margin has declined in the last couple of years.
LPX has a Gross Margin (22.98%) which is comparable to the rest of the industry.
LPX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.02% | ||
| PM (TTM) | 6.9% | ||
| GM | 22.98% |
OM growth 3Y-21.56%
OM growth 5Y-7.62%
PM growth 3Y-30.79%
PM growth 5Y-13.15%
GM growth 3Y-12.86%
GM growth 5Y-2.67%
2. Health
2.1 Basic Checks
LPX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LPX has more shares outstanding
The number of shares outstanding for LPX has been reduced compared to 5 years ago.
The debt/assets ratio for LPX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.17 indicates that LPX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.17, LPX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LPX has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, LPX is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.17 |
ROIC/WACC1.28
WACC8.85%
2.3 Liquidity
A Current Ratio of 3.00 indicates that LPX has no problem at all paying its short term obligations.
LPX has a better Current ratio (3.00) than 88.89% of its industry peers.
LPX has a Quick Ratio of 1.54. 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 1.54, 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 | 3 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
LPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.24%.
The Earnings Per Share has been growing slightly by 3.36% on average over the past years.
Looking at the last year, LPX shows a very negative growth in Revenue. The Revenue has decreased by -33.03% in the last year.
The Revenue has been decreasing by -1.81% on average over the past years.
EPS 1Y (TTM)-72.24%
EPS 3Y-9.47%
EPS 5Y3.36%
EPS growth Q2Q16.39%
Revenue 1Y (TTM)-33.03%
Revenue growth 3Y2.47%
Revenue growth 5Y-1.81%
Revenue growth Q2Q-6.67%
3.2 Future
Based on estimates for the next years, LPX will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.83% on average per year.
Based on estimates for the next years, LPX will show a small growth in Revenue. The Revenue will grow by 5.82% on average per year.
EPS Next Y31.47%
EPS Next 2Y23.17%
EPS Next 3Y22.31%
EPS Next 5Y17.83%
Revenue Next Year9.01%
Revenue Next 2Y6.97%
Revenue Next 3Y6.91%
Revenue Next 5Y5.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.29, LPX is valued on the expensive side.
LPX's Price/Earnings ratio is a bit cheaper when compared to the industry. LPX is cheaper than 66.67% of the companies in the same industry.
LPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.95, which indicates a correct valuation of LPX.
Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LPX to the average of the S&P500 Index (21.27), we can say LPX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 16.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPX indicates a slightly more expensive valuation: LPX is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LPX may justify a higher PE ratio.
A more expensive valuation may be justified as LPX's earnings are expected to grow with 22.31% in the coming years.
PEG (NY)0.71
PEG (5Y)6.64
EPS Next 2Y23.17%
EPS Next 3Y22.31%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.96, LPX has a dividend in line with its industry peers.
With a Dividend Yield of 1.33, LPX pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
On average, the dividend of LPX grows each year by 12.68%, which is quite nice.
LPX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)12.68%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LPX pays out 38.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of LPX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.76%
EPS Next 2Y23.17%
EPS Next 3Y22.31%
LOUISIANA-PACIFIC CORP
NYSE:LPX (4/19/2024, 1:53:08 PM)
71.76
-0.26 (-0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.29 | ||
| Fwd PE | 16.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.71
PEG (5Y)6.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 11.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.02% | ||
| PM (TTM) | 6.9% | ||
| GM | 22.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-72.24%
EPS 3Y-9.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y31.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-33.03%
Revenue growth 3Y2.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y