LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LPX - US5463471053 - Common Stock
86.25 USD
+0.34 (+0.4%)
84.44 USD
-1.81 (-2.1%)
LPX gets a fundamental rating of 6 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 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.
In the past 5 years LPX has always been profitable.
Each year in the past 5 years LPX had a positive operating cash flow.
1.2 Ratios
LPX has a Return On Assets of 8.15%. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
With a decent Return On Equity value of 12.42%, LPX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.37%, LPX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LPX had an Average Return On Invested Capital over the past 3 years of 24.24%. This is significantly above the industry average of 5.94%.
The 3 year average ROIC (24.24%) for LPX is well above the current ROIC(10.37%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.42% | ||
| ROIC | 10.37% |
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
LPX has a Profit Margin of 7.65%. This is in the better half of the industry: LPX outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of LPX has declined.
With an excellent Operating Margin value of 11.98%, LPX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
In the last couple of years the Operating Margin of LPX has grown nicely.
LPX has a Gross Margin of 23.60%. This is in the better half of the industry: LPX outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of LPX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.98% | ||
| PM (TTM) | 7.65% | ||
| GM | 23.6% |
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.
The number of shares outstanding for LPX has been reduced compared to 5 years ago.
Compared to 1 year ago, LPX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.56 indicates that LPX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.56, LPX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LPX has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as LPX would need 2.43 years to pay back of all of its debts.
LPX's Debt to FCF ratio of 2.43 is amongst the best of the industry. LPX outperforms 88.89% 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 | 2.43 | ||
| Altman-Z | 6.56 |
ROIC/WACC1.22
WACC8.51%
2.3 Liquidity
LPX has a Current Ratio of 2.93. This indicates that LPX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.93, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
LPX has a Quick Ratio of 1.72. This is a normal value and indicates that LPX is financially healthy and should not expect problems in meeting its short term obligations.
LPX has a Quick ratio of 1.72. This is amongst the best in the industry. LPX outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
LPX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.23%.
LPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.82% yearly.
Looking at the last year, LPX shows a decrease in Revenue. The Revenue has decreased by -3.29% in the last year.
LPX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.95% yearly.
EPS 1Y (TTM)-34.23%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-70.49%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-8.17%
3.2 Future
LPX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.22% yearly.
LPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.11% yearly.
EPS Next Y-53.12%
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
EPS Next 5Y6.22%
Revenue Next Year-6.2%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.74%
Revenue Next 5Y4.11%
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
The Price/Earnings ratio is 23.63, which indicates a rather expensive current valuation of LPX.
Compared to the rest of the industry, the Price/Earnings ratio of LPX indicates a somewhat cheap valuation: LPX is cheaper than 77.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LPX to the average of the S&P500 Index (26.55), we can say LPX is valued inline with the index average.
LPX is valuated rather expensively with a Price/Forward Earnings ratio of 22.17.
Based on the Price/Forward Earnings ratio, LPX is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. LPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.63 | ||
| Fwd PE | 22.17 |
4.2 Price Multiples
LPX's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as LPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42 | ||
| EV/EBITDA | 12.61 |
4.3 Compensation for Growth
LPX has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LPX's earnings are expected to decrease with -3.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.28%.
LPX's Dividend Yield is a higher than the industry average which is at 2.45.
LPX's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
On average, the dividend of LPX grows each year by 14.78%, which is quite nice.
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
LPX pays out 35.19% of its income as dividend. This is a sustainable payout ratio.
LPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.19%
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
86.25
+0.34 (+0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners91.94%
Inst Owner Change0.34%
Ins Owners0.67%
Ins Owner Change0.04%
Market Cap6.01B
Revenue(TTM)2.82B
Net Income(TTM)216.00M
Analysts72
Price Target103.94 (20.51%)
Short Float %6.9%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend1.04
Dividend Growth(5Y)14.78%
DP35.19%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.36%
Min EPS beat(2)-14.24%
Max EPS beat(2)-6.47%
EPS beat(4)2
Avg EPS beat(4)1.15%
Min EPS beat(4)-14.24%
Max EPS beat(4)18.86%
EPS beat(8)6
Avg EPS beat(8)14.03%
EPS beat(12)9
Avg EPS beat(12)54.74%
EPS beat(16)12
Avg EPS beat(16)42.76%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1.29%
Max Revenue beat(2)1.24%
Revenue beat(4)3
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-1.29%
Max Revenue beat(4)1.24%
Revenue beat(8)7
Avg Revenue beat(8)2.13%
Revenue beat(12)8
Avg Revenue beat(12)0.04%
Revenue beat(16)9
Avg Revenue beat(16)-1.64%
PT rev (1m)-6.68%
PT rev (3m)-3.87%
EPS NQ rev (1m)-44.07%
EPS NQ rev (3m)-64.97%
EPS NY rev (1m)-5.99%
EPS NY rev (3m)-14.43%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)-1.39%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.63 | ||
| Fwd PE | 22.17 | ||
| P/S | 2.13 | ||
| P/FCF | 42 | ||
| P/OCF | 14.27 | ||
| P/B | 3.45 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 12.61 |
EPS(TTM)3.65
EY4.23%
EPS(NY)3.89
Fwd EY4.51%
FCF(TTM)2.05
FCFY2.38%
OCF(TTM)6.05
OCFY7.01%
SpS40.52
BVpS24.97
TBVpS24.27
PEG (NY)N/A
PEG (5Y)0.32
Graham Number45.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.15% | ||
| ROE | 12.42% | ||
| ROCE | 14.35% | ||
| ROIC | 10.37% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 12.28% | ||
| OM | 11.98% | ||
| PM (TTM) | 7.65% | ||
| GM | 23.6% | ||
| FCFM | 5.07% |
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%
ROICexgc growth 3Y-39.19%
ROICexgc 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-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 200% | ||
| Cap/Sales | 9.85% | ||
| Interest Coverage | 24.14 | ||
| Cash Conversion | 88.26% | ||
| Profit Quality | 66.2% | ||
| Current Ratio | 2.93 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 6.56 |
F-Score6
WACC8.51%
ROIC/WACC1.22
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)-34.23%
EPS 3Y-24.9%
EPS 5Y73.82%
EPS Q2Q%-70.49%
EPS Next Y-53.12%
EPS Next 2Y-18.6%
EPS Next 3Y-3.31%
EPS Next 5Y6.22%
Revenue 1Y (TTM)-3.29%
Revenue growth 3Y-9.1%
Revenue growth 5Y4.95%
Sales Q2Q%-8.17%
Revenue Next Year-6.2%
Revenue Next 2Y-0.34%
Revenue Next 3Y2.74%
Revenue Next 5Y4.11%
EBIT growth 1Y-38.77%
EBIT growth 3Y-32.35%
EBIT growth 5Y51.74%
EBIT Next Year-20.69%
EBIT Next 3Y6.6%
EBIT Next 5Y11.54%
FCF growth 1Y184.62%
FCF growth 3Y-30.01%
FCF growth 5YN/A
OCF growth 1Y113.71%
OCF growth 3Y-25.87%
OCF growth 5Y30.64%
LOUISIANA-PACIFIC CORP / LPX FAQ
What is the fundamental rating for LPX stock?
ChartMill assigns a fundamental rating of 6 / 10 to LPX.
What is the valuation status of LOUISIANA-PACIFIC CORP (LPX) stock?
ChartMill assigns a valuation rating of 3 / 10 to LOUISIANA-PACIFIC CORP (LPX). This can be considered as Overvalued.
Can you provide the profitability details for LOUISIANA-PACIFIC CORP?
LOUISIANA-PACIFIC CORP (LPX) has a profitability rating of 8 / 10.
How financially healthy is LOUISIANA-PACIFIC CORP?
The financial health rating of LOUISIANA-PACIFIC CORP (LPX) is 9 / 10.
How sustainable is the dividend of LOUISIANA-PACIFIC CORP (LPX) stock?
The dividend rating of LOUISIANA-PACIFIC CORP (LPX) is 5 / 10 and the dividend payout ratio is 35.19%.