LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
USA - NYSE:LPX - US5463471053 - Common Stock
86.09 USD
-0.8 (-0.92%)
86.9 USD
+0.81 (+0.94%)
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. LPX gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year LPX had a positive cash flow from operations.
Each year in the past 5 years LPX has been profitable.
In the past 5 years LPX always reported a positive cash flow from operatings.
1.2 Ratios
LPX has a better Return On Assets (11.18%) than 88.89% of its industry peers.
LPX has a better Return On Equity (17.05%) than 66.67% of its industry peers.
The Return On Invested Capital of LPX (13.03%) is better than 100.00% of its industry peers.
LPX had an Average Return On Invested Capital over the past 3 years of 24.24%. This is significantly above the industry average of 5.72%.
The last Return On Invested Capital (13.03%) 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 | 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
LPX has a Profit Margin of 10.31%. 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.
LPX has a better Operating Margin (14.65%) than 88.89% of its industry peers.
LPX's Operating Margin has improved in the last couple of years.
LPX has a better Gross Margin (25.30%) than 77.78% of its industry peers.
LPX's Gross Margin has improved in the last couple of years.
| 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.
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 6.72 indicates that LPX is not in any danger for bankruptcy at the moment.
LPX's Altman-Z score of 6.72 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.
Looking at the Debt to FCF ratio, with a value of 1.25, LPX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that LPX is not too dependend on debt financing.
The Debt to Equity ratio of LPX (0.20) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 6.72 |
ROIC/WACC1.54
WACC8.47%
2.3 Liquidity
A Current Ratio of 2.84 indicates that LPX has no problem at all paying its short term obligations.
LPX's Current ratio of 2.84 is fine compared to the rest of the industry. LPX outperforms 66.67% of its industry peers.
A Quick Ratio of 1.67 indicates that LPX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.67, LPX is doing good in 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
The earnings per share for LPX have decreased strongly by -24.20% in the last year.
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%.
The Revenue has been growing slightly by 4.95% on average over the past years.
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.
The Revenue is expected to grow by 4.11% on average over the next years.
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.
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
With a Price/Earnings ratio of 19.09, LPX is valued on the expensive side.
77.78% of the companies in the same industry are more expensive than LPX, based on the Price/Earnings ratio.
LPX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 18.31 indicates a rather expensive valuation of LPX.
Based on the Price/Forward Earnings ratio, LPX is valued a bit 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/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 18.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
LPX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
The excellent profitability rating of LPX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
5. Dividend
5.1 Amount
LPX has a Yearly Dividend Yield of 1.23%.
Compared to an average industry Dividend Yield of 4.14, LPX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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.
LPX has decreased its dividend recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LPX pays out 25.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of LPX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.59%
EPS Next 2Y-10.5%
EPS Next 3Y-1.29%
86.09
-0.8 (-0.92%)
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 Change2.02%
Market Cap6.00B
Analysts67.14
Price Target108.12 (25.59%)
Short Float %4.87%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)-17.54%
EPS NQ rev (3m)-62.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 18.31 | ||
| P/S | 2.08 | ||
| P/FCF | 21.57 | ||
| P/OCF | 11.62 | ||
| P/B | 3.44 | ||
| P/tB | 3.54 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)4.51
EY5.24%
EPS(NY)4.7
Fwd EY5.46%
FCF(TTM)3.99
FCFY4.64%
OCF(TTM)7.41
OCFY8.61%
SpS41.37
BVpS25.01
TBVpS24.3
PEG (NY)N/A
PEG (5Y)0.26
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 | 6.72 |
F-Score5
WACC8.47%
ROIC/WACC1.54
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%