Louisiana-Pacific (LPX) AI Stock Analysis

• Market Cap: $6.74B
• Dividend Yield: 1.11%
• Average Volume (3M): 914.55K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.22
• Revenue Growth: -1.44%
• EPS Growth: -31.12%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 73
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.99
• Shares Outstanding: 69,640,960
• 10 Day Avg. Volume: 940,046
• 30 Day Avg. Volume: 914,546
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 8.32
• Enterprise Value/Ebitda: 11.34
• 1Y Price Target: $106.50
• Price Target Upside: 7.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $108.00 ▲(9.07% Upside)

Louisiana-Pacific's strong financial performance and operational improvements in the Siding segment are significant strengths. However, challenges in the OSB market and moderate valuation metrics slightly temper the overall outlook. The technical indicators suggest a stable trend, supporting a balanced view.

Positive Factors

Earnings and guidance

Q1 results were better than expected and LP is modestly raising its 2025 Siding guidance.

Siding business performance

The siding business remains strong and supportive of the valuation.

Negative Factors

Capital expenditure impact

Free cash flow will likely be modest over the next 2-3 years due to elevated capex.

OSB market dynamics

Estimates are being lowered due to more challenging OSB market dynamics.

Pricing challenges

Benchmark pricing has declined approximately $70/msf since early May.

Louisiana-Pacific Business Overview & Revenue Model

Company Description

Louisiana-Pacific Corporation (LPX) is a leading manufacturer of engineered wood products and building materials, headquartered in Nashville, Tennessee. The company operates primarily in two sectors: the North American building products market and the global engineered wood products market. LPX's core products include oriented strand board (OSB), engineered wood siding, and other innovative building solutions that cater to residential, commercial, and industrial construction needs.

How the Company Makes Money

Louisiana-Pacific generates revenue primarily through the sale of its engineered wood products and building materials. The company's key revenue streams include sales of oriented strand board (OSB), which is widely used in residential and commercial construction for structural applications, as well as its other products such as SmartSide siding, which combines the aesthetics of traditional wood materials with enhanced durability. LPX also benefits from strategic partnerships with major distributors and builders, which help to expand its market reach. Additionally, the company capitalizes on favorable building trends and housing market dynamics, including new home construction and remodeling activities, which drive demand for its products. Economic factors, such as interest rates and housing starts, play a significant role in influencing the company's earnings as well.

Louisiana-Pacific Financial Statement Overview

Summary

Louisiana-Pacific demonstrates strong financial health with consistent improvements in profitability and efficient cash management. The balance sheet underscores financial stability with low leverage, while cash flow remains robust. However, revenue volatility and potential industry risks warrant attention.

Income Statement

Louisiana-Pacific demonstrated strong growth in revenue and profitability over the years. The gross profit margin consistently improved, reaching approximately 28.3% in 2024, indicating effective cost management. Net profit margin also saw substantial improvement, rising to 14.3% in 2024. However, revenue fluctuations, particularly a dip in 2023, highlight volatility in the construction industry.

Balance Sheet

The company's balance sheet shows a strong equity position with an improving debt-to-equity ratio, which was 0.22 in 2024. This indicates conservative financial management and reduced leverage risk. The equity ratio increased to 65.1% in 2024, reflecting a stable financial foundation. However, the high reliance on equity could limit leverage opportunities.

Cash Flow

Cash flow analysis reveals robust operating cash flows, with a significant increase in free cash flow to $422 million in 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio improved to 1.44 in 2024, showcasing efficient cash conversion. However, free cash flow growth rates show volatility, necessitating careful monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.94B	2.58B	3.85B	4.55B	2.79B
Gross Profit	729.00M	831.00M	593.00M	1.50B	2.07B	868.00M
EBITDA	535.00M	530.00M	381.00M	1.30B	1.83B	751.00M
Net Income	298.00M	420.00M	178.00M	1.09B	1.38B	499.00M
Balance Sheet
Total Assets	2.66B	2.57B	2.44B	2.35B	2.19B	2.09B
Cash, Cash Equivalents and Short-Term Investments	333.00M	340.00M	222.00M	369.00M	358.00M	535.00M
Total Debt	378.00M	380.00M	378.00M	395.00M	390.00M	380.00M
Total Liabilities	914.00M	898.00M	880.00M	916.00M	955.00M	842.00M
Stockholders Equity	1.74B	1.67B	1.56B	1.43B	1.24B	1.23B
Cash Flow
Free Cash Flow	276.00M	422.00M	16.00M	730.00M	1.23B	582.00M
Operating Cash Flow	514.00M	605.00M	316.00M	1.14B	1.48B	659.00M
Investing Cash Flow	-254.00M	-183.00M	-376.00M	-146.00M	-247.00M	-49.00M
Financing Cash Flow	-240.00M	-292.00M	-77.00M	-982.00M	-1.39B	-272.00M

Louisiana-Pacific Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPX, the sentiment is Positive. The current price of 99.02 is above the 20-day moving average (MA) of 96.18, above the 50-day MA of 92.40, and above the 200-day MA of 97.58, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 55.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPX.

Louisiana-Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPX	73 Outperform	$6.74B	22.83	17.53%	1.11%	-1.44%	-31.12%
UFPI	72 Outperform	$6.20B	17.24	10.71%	1.33%	-5.09%	-26.13%
SUZ	65 Neutral	$11.95B	8.49	18.34%	3.43%	11.48%	1773.12%
SLVM	65 Neutral	$1.80B	8.57	24.37%	3.97%	-4.03%	-5.27%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
CLW	59 Neutral	$353.00M	33.74	-4.36%	―	-26.71%	-329.19%
MERC	43 Neutral	$213.67M	―	-23.39%	9.40%	-2.16%	44.89%

Louisiana-Pacific Corporate Events

Louisiana-Pacific Announces Quarterly Dividend for August

On August 1, 2025, Louisiana-Pacific Corporation announced a quarterly cash dividend of $0.28 per share, payable on August 29, 2025, to stockholders of record as of August 15, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders, potentially enhancing its market position and investor confidence.

Louisiana-Pacific Appoints New Chief Operating Officer

On June 16, 2025, Louisiana-Pacific Corporation appointed Anthony Hamill as Senior Vice President, Chief Operating Officer, effective June 30, 2025. Hamill, who has over 30 years of experience in engineering and manufacturing, returns to LP after serving as Chief Operations Officer at Roseburg Forest Products. His extensive leadership experience within LP and other firms positions him to oversee LP’s North American manufacturing operations, which include 18 facilities and over 3,000 employees. This strategic appointment is expected to enhance LP’s production capabilities and competitive positioning as the company continues to execute its long-term growth strategy.