Louisiana-Pacific Corp (LPX) stock analysis

P/E above its 5-year median

Louisiana-Pacific's P/E of 96.2 is above its own 5-year median of 17.9.

P/E above the industry

Louisiana-Pacific's P/E of 96.2 is above the Materials median of 21.9.

EV/EBITDA above its 5-year median

Louisiana-Pacific's EV/EBITDA of 24.0 is above its 5-year median of 11.0.

P/B above the industry

Louisiana-Pacific's price-to-book of 3.05 is above the Materials median of 2.09.

Trading above fair value

The share price of $76.01 is above our fair value estimate of $35.25.

Margin of safety under 20%

The price is 116% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -11.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -46.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -81.8% over the last twelve months, against a 5-year average of -21.8% a year.

Growing slower than the industry

Revenue grew -14.3% over the last twelve months; the Materials median is -1.9%.

Guidance raised

Louisiana-Pacific raised its Full Year 2026 Consolidated Adjusted EBITDA outlook on Nov 3, 2026.

Gross margin slipping

Gross margin was 18.0% over the last twelve months, against 25.4% a year earlier.

Return on equity under 15%

Return on equity was 3.1% over the last twelve months and averaged 47.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Louisiana-Pacific's return on equity of 3.1% is below the Materials median of 11.4%.

Earnings shrank over 5 years

Net income shrank 21.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.2% over the last twelve months, against a 5-year average of 18.0%.

Net margin below the industry

Louisiana-Pacific's net margin of 2.2% is below the Materials median of 6.8%.

Low debt

Debt is 20.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 28.2% five years ago to 20.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 74.1% of total debt.

Interest not well covered

Operating income covers interest expense 4.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.22 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Louisiana-Pacific paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Louisiana-Pacific yields 1.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Not covered by earnings

Dividends take 150% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.