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Louisiana-Pacific Corp. (LPX)
NYSE:LPX
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Louisiana-Pacific
(NYSE:LPX)
66Neutral
Positive Factors
Financial Performance
LP is doing a solid job of profitably growing the Siding franchise against a tough housing backdrop.
Revenue Growth
7-9% year-over-year revenue growth in Siding is constructive against a tough housing market.
Negative Factors
Capital Expenditures
Elevated capital expenditures will likely limit share repurchases.
EBITDA Margin
LP's guidance of static Siding EBITDA margin pressured the stock.
Tariff Risks
Near-term challenges include an uncertain macro backdrop and risk of disruptions/demand destruction from potential tariffs.
Louisiana-Pacific (LPX) vs. S&P 500 (SPY)
Market Cap
$6.07B
Dividend Yield1.23%
Average Volume (3M)574.49K
Price to Earnings (P/E)14.7
Beta (1Y)1.39
Revenue Growth13.95%
EPS Growth138.97%
CountryUS
Employees4,300
SectorIndustrials
Sector Strength75
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)5.89
Shares Outstanding69,642,740
10 Day Avg. Volume425,983
30 Day Avg. Volume574,492
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.20
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.77
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$111.00Price Target Upside28.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Louisiana-Pacific Business Overview & Revenue Model
Company DescriptionLouisiana-Pacific Corporation, together with its subsidiaries, manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through four segments: Siding; Oriented Strand Board (OSB); Engineered Wood Products (EWP); and South America. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. The OSB segment manufactures and distributes OSB structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The EWP segment provides laminated veneer lumber and other related products; and LP SolidStart I-joists, which are primarily used in residential and commercial floorings, roofing systems, and other structural applications. The South America segment manufactures and distributes OSB structural panel and siding products. This segment also distributes and sells related products for the region's transition to wood frame construction. It also offers timber and timberlands and other products and services. The company sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. Louisiana-Pacific Corporation was incorporated in 1972 and is headquartered in Nashville, Tennessee.
How the Company Makes MoneyLouisiana-Pacific Corporation generates revenue primarily through the manufacture and sale of engineered wood products. Its key revenue streams include the production and distribution of oriented strand board (OSB), which is widely used in residential construction for sheathing and flooring. Additionally, the company's siding products, such as LP SmartSide, contribute significantly to its financial performance, catering to both new constructions and remodeling markets. LPX also produces structural framing products and industrial panels, further diversifying its revenue sources. The company's earnings are bolstered by its strategic partnerships with distributors and builders, as well as its focus on innovative, sustainable building solutions that meet evolving industry standards and consumer preferences.
Louisiana-Pacific Financial Statement Overview
Summary
Louisiana-Pacific exhibits 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.76
Positive
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.81
Very Positive
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.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.94B | 2.58B | 3.85B | 4.55B | 2.79B | Gross Profit |
| 831.00M | 593.00M | 1.50B | 2.07B | 868.00M | EBIT |
| 530.00M | 287.00M | 1.25B | 1.82B | 636.00M | EBITDA |
| 530.00M | 381.00M | 1.30B | 1.83B | 751.00M | Net Income Common Stockholders |
| 420.00M | 178.00M | 1.09B | 1.38B | 499.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 340.00M | 222.00M | 369.00M | 358.00M | 535.00M | Total Assets |
| 2.57B | 2.44B | 2.35B | 2.19B | 2.09B | Total Debt |
| 380.00M | 378.00M | 395.00M | 390.00M | 380.00M | Net Debt |
| 40.00M | 156.00M | 26.00M | 32.00M | -155.00M | Total Liabilities |
| 898.00M | 880.00M | 916.00M | 955.00M | 842.00M | Stockholders Equity |
| 1.67B | 1.56B | 1.43B | 1.24B | 1.23B |
| Cash Flow | Free Cash Flow | |||
| 422.00M | 16.00M | 730.00M | 1.23B | 582.00M | Operating Cash Flow |
| 605.00M | 316.00M | 1.14B | 1.48B | 659.00M | Investing Cash Flow |
| -183.00M | -376.00M | -146.00M | -247.00M | -49.00M | Financing Cash Flow |
| -292.00M | -77.00M | -982.00M | -1.39B | -272.00M |
Louisiana-Pacific Technical Analysis
Neutral
86.46
Price Trends
91.78
Negative
101.83
Negative
101.27
Negative
Market Momentum
-1.91
Negative
45.95
Neutral
78.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPX, the sentiment is Neutral. The current price of 86.46 is above the 20-day moving average (MA) of 86.15, below the 50-day MA of 91.78, and below the 200-day MA of 101.27, indicating a neutral trend. The MACD of -1.91 indicates Negative momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 78.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LPX.
Louisiana-Pacific Risk Analysis
Louisiana-Pacific disclosed 29 risk factors in its most recent earnings report. Louisiana-Pacific reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Louisiana-Pacific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.07B | 14.74 | 26.08% | 1.23% | 13.95% | 138.97% | |
65 Neutral | $592.59M | 11.77 | 8.29% | ― | -5.86% | 16.49% | |
63 Neutral | $4.29B | 11.36 | 5.34% | 214.53% | 4.14% | -9.10% | |
63 Neutral | $6.48B | 15.75 | 11.39% | 1.25% | -7.84% | -17.33% | |
61 Neutral | $18.55B | 51.02 | 3.71% | 3.26% | -6.56% | -54.29% | |
59 Neutral | $3.11B | 143.05 | 2.31% | 4.61% | 3.71% | -64.41% |
* Industrials Sector Average
Performance Comparison
LPX
Louisiana-Pacific
86.46
14.37
19.93%
BXC
Bluelinx Holdings
72.33
-28.26
-28.09%
PCH
PotlatchDeltic
38.71
-0.41
-1.05%
UFPI
UFP Industries
100.27
-11.47
-10.26%
WY
Weyerhaeuser
25.79
-3.62
-12.31%
CFPZF
Canfor
9.61
-1.35
-12.32%
Louisiana-Pacific Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q4-2024)
| % Change Since: -23.23%|
Next Earnings Date:May 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in the siding segment, operational efficiency, and comprehensive plans for future growth through capacity expansion. However, challenges such as declining OSB prices, market headwinds, and cost inflation were noted. The forward-looking outlook remains positive with a healthy order file for 2025.Q4-2024 Updates
Positive Updates
Record Year for Siding Segment
In 2024, siding set records for net sales and EBITDA, with siding sales growing by 17% to $1.56 billion, contributing to a 14% increase in overall sales to $2.9 billion and a 44% increase in EBITDA to $688 million.
Strong Financial Performance
The company achieved $681 million in sales, $125 million in EBITDA, and $105 million in operating cash flow in Q4. For the full year, operating cash flow was $605 million, enabling continued investment and shareholder returns.
Operational Efficiency and Safety
The company improved operating efficiency and achieved a total incident rate (TIR) of 0.67, considered world-class, and continues to focus on safety improvements.
Capacity Expansion Plans
Plans are in place for significant investments in capacity expansion in 2025 and 2026 to meet demand, including a second manufacturing line at Holton and increased pre-finishing capacity.
Strong Order File for 2025
Encouraging evidence of growth in 2025 with a healthy siding order file, indicating continued strong demand.
Negative Updates
Decline in OSB Prices
Lower OSB prices in Q4 resulted in a $18 million loss in both revenue and EBITDA for the segment.
Market Challenges
2024 saw a 4% decline in total US housing starts, with a 6% decline in Q4, impacting overall market conditions.
Continued Inflationary Pressures
The company anticipates $20 million in inflationary pressures for 2025, including labor and raw materials.
Potential Tariff Uncertainty
Uncertainty regarding tariffs on raw materials, which could impact future costs and margins.
Company Guidance
During the call, Louisiana-Pacific Corporation provided detailed guidance for the first quarter and full year of 2025. The company expects siding sales to grow between 9% and 11% in Q1, with revenue ranging from $390 million to $400 million and EBITDA landing between $95 million and $105 million, maintaining a 25% EBITDA margin. For the full year, siding revenue is anticipated to increase by 7% to 9%, reaching $1.65 billion to $1.7 billion, with EBITDA projected at $425 million to $450 million. The company also plans to invest about $200 million in growth capital, largely in the second half of 2025, to expand siding capacity to meet increasing demand. The guidance reflects confidence in market share gains and a healthy siding order file, despite anticipating flat housing starts and a modest rebound in repair and remodeling spending.Louisiana-Pacific Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Louisiana-Pacific Appoints Jason Ringblom as President
Positive
Apr 3, 2025
On April 2, 2025, Louisiana-Pacific Corporation announced the appointment of Jason Ringblom as President, effective April 7, 2025, to oversee all manufacturing and commercial operations. This move is part of LP’s strategic shift to streamline operations and enhance customer experience, positioning the company for growth. The reorganization includes the elimination of certain positions and the appointment of new leadership roles, aiming to integrate operations and optimize resource allocation for improved efficiency and customer engagement.
Executive/Board ChangesBusiness Operations and Strategy
Louisiana-Pacific Appoints Kelly H. Barrett as Director
Positive
Feb 27, 2025
On February 25, 2025, Louisiana-Pacific Corporation appointed Kelly H. Barrett as a director, effective immediately, with her term expiring at the 2025 annual meeting. Barrett, who brings extensive leadership experience from her previous roles at The Home Depot and Cousins Properties, will serve on the Finance and Audit Committee and the Governance and Corporate Responsibility Committee. Her appointment is seen as a strategic move to leverage her expertise in finance and management to drive sustainable growth for the company.
Executive/Board ChangesShareholder Meetings
Louisiana-Pacific Board Member Tracy Embree to Depart
Neutral
Feb 18, 2025
On February 13, 2025, Tracy A. Embree, a long-serving member of the Louisiana-Pacific Corporation’s Board of Directors, announced her decision not to stand for re-election at the upcoming 2025 Annual Meeting of Stockholders. Her decision, based on personal reasons, follows nine years of dedicated service and is not due to any disagreements with the company’s operations, policies, or practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.