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Louisiana-Pacific Corporation

LPXNYSE
Basic Materials
Paper, Lumber & Forest Products
$70.81
$-1.89(-2.60%)
U.S. Market opens in 0h 31m

Louisiana-Pacific Corporation Fundamental Analysis

Louisiana-Pacific Corporation (LPX) shows weak financial fundamentals with a PE ratio of 34.10, profit margin of 5.39%, and ROE of 8.46%. The company generates $2.7B in annual revenue with strong year-over-year growth of 13.95%.

Key Strengths

PEG Ratio-1.05
Current Ratio2.78

Areas of Concern

ROE8.46%
Operating Margin8.27%
We analyze LPX's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.

Fundamental Health Score

C
56.1/100

We analyze LPX's fundamental strength across five key dimensions:

Efficiency Score

Weak

LPX struggles to generate sufficient returns from assets.

ROA > 10%
5.56%

Valuation Score

Moderate

LPX shows balanced valuation metrics.

PE < 25
34.10
PEG Ratio < 2
-1.05

Growth Score

Moderate

LPX shows steady but slowing expansion.

Revenue Growth > 5%
13.95%
EPS Growth > 10%
1.39%

Financial Health Score

Excellent

LPX maintains a strong and stable balance sheet.

Debt/Equity < 1
0.23
Current Ratio > 1
2.78

Profitability Score

Weak

LPX struggles to sustain strong margins.

ROE > 15%
8.46%
Net Margin ≥ 15%
5.39%
Positive Free Cash Flow
Yes

Key Financial Metrics

Is LPX Expensive or Cheap?

P/E Ratio

LPX trades at 34.10 times earnings. This suggests a premium valuation.

34.10

PEG Ratio

When adjusting for growth, LPX's PEG of -1.05 indicates potential undervaluation.

-1.05

Price to Book

The market values Louisiana-Pacific Corporation at 2.88 times its book value. This may indicate undervaluation.

2.88

EV/EBITDA

Enterprise value stands at 13.09 times EBITDA. This signals the market has high growth expectations.

13.09

How Well Does LPX Make Money?

Net Profit Margin

For every $100 in sales, Louisiana-Pacific Corporation keeps $5.39 as profit after all expenses.

5.39%

Operating Margin

Core operations generate 8.27 in profit for every $100 in revenue, before interest and taxes.

8.27%

ROE

Management delivers $8.46 in profit for every $100 of shareholder equity.

8.46%

ROA

Louisiana-Pacific Corporation generates $5.56 in profit for every $100 in assets, demonstrating efficient asset deployment.

5.56%

Following the Money - Real Cash Generation

Operating Cash Flow

Louisiana-Pacific Corporation produces operating cash flow of $382.07M, showing steady but balanced cash generation.

$382.07M

Free Cash Flow

Louisiana-Pacific Corporation produces free cash flow of $91.78M, offering steady but limited capital for shareholder returns and expansion.

$91.78M

FCF Per Share

Each share generates $1.31 in free cash annually.

$1.31

FCF Yield

LPX converts 1.85% of its market value into free cash.

1.85%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

34.10

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

-1.05

vs 25 benchmark

P/B Ratio

Price to book value ratio

2.88

vs 25 benchmark

P/S Ratio

Price to sales ratio

1.83

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.23

vs 25 benchmark

Current Ratio

Current assets to current liabilities

2.78

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.08

vs 25 benchmark

ROA

Return on assets percentage

0.06

vs 25 benchmark

ROCE

Return on capital employed

0.10

vs 25 benchmark

How LPX Stacks Against Its Sector Peers

MetricLPX ValueSector AveragePerformance
P/E Ratio34.1023.91 Worse (Expensive)
ROE8.46%887.00% Weak
Net Margin5.39%-114589.00% (disorted) Weak
Debt/Equity0.230.55 Strong (Low Leverage)
Current Ratio2.785.05 Strong Liquidity
ROA5.56%-6361.00% (disorted) Weak

LPX outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews Louisiana-Pacific Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

120.56%

Industry Style: Cyclical, Commodity, Value

High Growth

EPS CAGR

7376.06%

Industry Style: Cyclical, Commodity, Value

High Growth

FCF CAGR

559.18%

Industry Style: Cyclical, Commodity, Value

High Growth

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