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Louisiana-Pacific Corp. (LPX)
NYSE:LPX
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Louisiana-Pacific
(NYSE:LPX)64Neutral
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.
Louisiana-Pacific (LPX) vs. S&P 500 (SPY)
Market Cap
$6.63B
Dividend Yield1.08%
Average Volume (3M)707.62K
Price to Earnings (P/E)16.1
Beta (1Y)1.69
Revenue Growth13.95%
EPS Growth138.97%
CountryUS
Employees4,300
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)5.89
Shares Outstanding69,692,100
10 Day Avg. Volume1,034,158
30 Day Avg. Volume707,623
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)2.32
Price to Cash Flow (P/CF)16.30
P/FCF Ratio16.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$110.40Price Target Upside14.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Louisiana-Pacific Business Overview & Revenue Model
Company DescriptionLouisiana-Pacific Corp. engages in designing, manufacturing and marketing of products for the new home construction, repair and remodeling and outdoor structures markets. It operates through the following four segments: Siding, Oriented Strand Board (OSB), Engineered Wood Products, and South America. The Siding segment offers wood-based sidings, trim, soffit, fascia, and pre-finished lap and trim products in a variety of patterns and textures. The OSB segment manufactures and distributes oriented strand board structural panel products. The Engineered Wood Products segment includes laminated veneer lumber, laminated strand lumber, I-Joists, and other related products. The South American segment covers the distribution of OSB and siding products in South America and certain export markets. The company was founded on January 5, 1973 and is headquartered in Nashville, TN.
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 demonstrates solid financial health with strong revenue and profitability growth, a stable balance sheet, and robust cash flows. However, revenue volatility and industry risks are potential concerns.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
Negative
96.17
Price Trends
108.26
Negative
108.75
Negative
100.85
Negative
Market Momentum
-4.28
Positive
29.82
Positive
20.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPX, the sentiment is Negative. The current price of 96.17 is below the 20-day moving average (MA) of 105.58, below the 50-day MA of 108.26, and below the 200-day MA of 100.85, indicating a bearish trend. The MACD of -4.28 indicates Positive momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 20.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.71B | 170.66 | 1.07% | 3.80% | 3.71% | -64.41% | |
66 Neutral | $6.30B | 15.35 | 12.80% | 1.27% | -7.84% | -17.33% | |
66 Neutral | $22.34B | 56.68 | 4.07% | 2.55% | -7.17% | -52.62% | |
64 Neutral | $6.63B | 16.09 | 25.13% | 1.08% | 13.95% | 138.97% | |
62 Neutral | $658.37M | 12.63 | 8.22% | ― | -5.86% | 16.49% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% |
* Industrials Sector Average
Performance Comparison
LPX
Louisiana-Pacific
96.17
21.34
28.52%
BXC
Bluelinx Holdings
76.74
-43.55
-36.20%
PCH
PotlatchDeltic
47.09
2.10
4.67%
UFPI
UFP Industries
106.16
-7.66
-6.73%
WY
Weyerhaeuser
30.93
-2.77
-8.22%
CFPZF
Canfor
10.21
-2.30
-18.39%
Louisiana-Pacific Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -14.61% | Next Earnings Date: Apr 30, 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.Highlights
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.
Lowlights
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 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.