Louisiana-Pacific Corporation
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
Areas of Concern
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
We analyze LPX's fundamental strength across five key dimensions:
Efficiency Score
WeakLPX struggles to generate sufficient returns from assets.
Valuation Score
ModerateLPX shows balanced valuation metrics.
Growth Score
ModerateLPX shows steady but slowing expansion.
Financial Health Score
ExcellentLPX maintains a strong and stable balance sheet.
Profitability Score
WeakLPX struggles to sustain strong margins.
Key Financial Metrics
Is LPX Expensive or Cheap?
P/E Ratio
LPX trades at 34.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LPX's PEG of -1.05 indicates potential undervaluation.
Price to Book
The market values Louisiana-Pacific Corporation at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.09 times EBITDA. This signals the market has high growth expectations.
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.
Operating Margin
Core operations generate 8.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.46 in profit for every $100 of shareholder equity.
ROA
Louisiana-Pacific Corporation generates $5.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
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.
Free Cash Flow
Louisiana-Pacific Corporation produces free cash flow of $91.78M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
LPX converts 1.85% of its market value into free cash.
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
| Metric | LPX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.10 | 23.91 | Worse (Expensive) |
| ROE | 8.46% | 887.00% | Weak |
| Net Margin | 5.39% | -114589.00% (disorted) | Weak |
| Debt/Equity | 0.23 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.78 | 5.05 | Strong Liquidity |
| ROA | 5.56% | -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 GrowthEPS CAGR
7376.06%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
559.18%
Industry Style: Cyclical, Commodity, Value
High Growth