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Louisiana-Pacific Corp LPX

Morningstar Rating
$61.45 +0.01 (0.02%)
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Company Report

Louisiana-Pacific Earnings: Housing Market Weakness Constrains Wood Product Demand

No-moat-rated Louisiana Pacific reported third-quarter results that were largely in line with our expectations as the company continues to navigate a challenging operating environment. Net sales fell over 14% year over year as all segments reported double-digit declines. LP’s end markets remained constrained as higher interest rates and weak new residential housing construction weighed on demand for wood products. While the company has made sequential progress, housing markets have shown few signs of improvement in the second half of the year. We've increased our fair value estimate to $52 per share from $51 due to the time value of money.

Price vs Fair Value

LPX is trading at a 18% premium.
Price
$61.45
Fair Value
$66.00
Uncertainty
High
1-Star Price
$18.50
5-Star Price
$45.80
Economic Moat
Jnmq
Capital Allocation
Flggdbq

Bulls Say, Bears Say

Bulls

A continued shift from plywood to OSB in single-family housing should provide a strong tailwind for Louisiana-Pacific’s sizable OSB business.

Bears

Louisiana-Pacific’s reliance on OSB profitability could put the firm at risk during times of economic weakness.

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News

Trading Information

Previous Close Price
$61.44
Day Range
$61.1962.59
52-Week Range
$49.4779.56
Bid/Ask
$60.99 / $61.98
Market Cap
$4.43 Bil
Volume/Avg
415,286 / 875,683

Key Statistics

Price/Earnings (Normalized)
19.69
Price/Sales
1.68
Dividend Yield
1.56%
Dividend Yield (Forward)
1.56%
Total Yield
1.56%

Company Profile

Louisiana-Pacific is primarily an oriented strand board producer, while offering engineered wood siding used in home construction and repair and remodel projects. The company is largely exposed to the North American housing market but has also established capacity in Brazil and Chile.
Sector
Industrials
Industry
Building Products & Equipment
Stock Style Box
Small Core
Total Number of Employees
4,300

Competitors

Valuation

Metric
LPX
WY
WFG
Price/Earnings (Normalized)
19.6928.829.80
Price/Book Value
2.952.260.83
Price/Sales
1.683.010.96
Price/Cash Flow
11.0116.3213.37
Price/Earnings
LPX
WY
WFG

Financial Strength

Metric
LPX
WY
WFG
Quick Ratio
1.281.372.17
Current Ratio
2.801.793.51
Interest Coverage
17.223.25−8.00
Quick Ratio
LPX
WY
WFG

Profitability

Metric
LPX
WY
WFG
Return on Assets (Normalized)
9.68%4.62%0.45%
Return on Equity (Normalized)
15.77%7.68%0.59%
Return on Invested Capital (Normalized)
12.21%6.26%0.18%
Return on Assets
LPX
WY
WFG

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