LOUISIANA-PACIFIC CORP (LPX) Stock Fundamental Analysis
NYSE:LPX - New York Stock Exchange, Inc. - US5463471053 - Common Stock - Currency: USD
Overall LPX gets a fundamental rating of 7 out of 10. We evaluated LPX 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. With these ratings, LPX could be worth investigating further for quality investing!.
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.
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
The Return On Assets of LPX (15.68%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 23.82%, LPX belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.39%, LPX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LPX is significantly above the industry average of 7.39%.
The 3 year average ROIC (24.24%) for LPX is well above the current ROIC(16.39%). The reason for the recent decline needs to be investigated.
| 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.
LPX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.69%, 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 27.69%. This is in the better half of the industry: LPX outperforms 77.78% of its industry peers.
LPX's Gross Margin has improved in the last couple of years.
| 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
LPX has an Altman-Z score of 7.36. This indicates that LPX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.36, LPX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
LPX has a better Debt to FCF ratio (0.97) 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.
Looking at the Debt to Equity ratio, with a value of 0.21, LPX is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 7.36 |
ROIC/WACC1.9
WACC8.61%
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.
Looking at the Current ratio, with a value of 3.03, LPX belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Quick Ratio of 1.59 indicates that LPX should not have too much problems paying its short term obligations.
LPX has a Quick ratio of 1.59. This is in the better half of the industry: LPX outperforms 77.78% of its industry peers.
| 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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.05%.
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.
LPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.25% yearly.
EPS Next Y-22.9%
EPS Next 2Y-2.81%
EPS Next 3Y2.42%
EPS Next 5Y6.81%
Revenue Next Year-0.31%
Revenue Next 2Y3.29%
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 16.36.
Based on the Price/Earnings ratio, LPX is valued cheaper than 88.89% of the companies in the same industry.
LPX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
LPX is valuated correctly with a Price/Forward Earnings ratio of 16.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPX is on the same level as its industry peers.
LPX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
LPX's Enterprise Value to EBITDA ratio is in line with the industry average.
LPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.84 | ||
| EV/EBITDA | 10.05 |
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-2.81%
EPS Next 3Y2.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.28%, LPX has a reasonable but not impressive dividend return.
LPX's Dividend Yield is comparable with the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.42, LPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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.
LPX has decreased its dividend recently.
Dividend Growth(5Y)14.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
LPX pays out 18.61% 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.
DP18.61%
EPS Next 2Y-2.81%
EPS Next 3Y2.42%
91.77
-0.81 (-0.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners85.62%
Inst Owner Change0.56%
Ins Owners1.43%
Ins Owner Change4.39%
Market Cap6.39B
Analysts67.14
Price Target109.82 (19.67%)
Short Float %3.92%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
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%
PT rev (3m)-5.56%
EPS NQ rev (1m)-6.23%
EPS NQ rev (3m)-27.09%
EPS NY rev (1m)-2.67%
EPS NY rev (3m)-18.37%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 16.55 | ||
| P/S | 2.17 | ||
| P/FCF | 17.84 | ||
| P/OCF | 11.32 | ||
| P/B | 3.77 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 10.05 |
EPS(TTM)5.61
EY6.11%
EPS(NY)5.54
Fwd EY6.04%
FCF(TTM)5.14
FCFY5.61%
OCF(TTM)8.1
OCFY8.83%
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 | 7.36 |
F-Score8
WACC8.61%
ROIC/WACC1.9
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-22.9%
EPS Next 2Y-2.81%
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-0.31%
Revenue Next 2Y3.29%
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%