Louisiana-Pacific Corp (NYSE: LPX)

Sector: Industrials Industry: Building Products & Equipment CIK: 0000060519
Market Cap 6.21 Bn
P/B 3.59
P/E 42.52
P/S 2.29
ROIC (Qtr) 8.01
Div Yield % 1.26
Rev 1y % (Qtr) -16.62
Total Debt (Qtr) 370.00 Mn
Debt/Equity (Qtr) 0.21
Add ratio to table...

About

Louisiana-Pacific Corporation (LPX) is a prominent player in the building solutions industry, providing high-performance products for new home construction, repair and remodeling, and outdoor structures. The company has a significant presence in North America, South America, and other regions. LPX generates revenue through its three primary business segments: Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The Siding segment, contributing approximately 51% of LPX's revenue in 2023, offers engineered wood siding products designed...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 382M provides robust 1.03x coverage of total debt 370M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 2.60B provides 7.04x coverage of total debt 370M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 382M provides exceptional 25.47x coverage of interest expenses 15M, showing strong debt service capability.
  • Operating cash flow of 382M provides strong 12.73x coverage of stock compensation 30M, indicating sustainable incentive practices.
  • Robust tangible asset base of 2.60B provides 5.03x coverage of working capital 518M, indicating strong operational backing.

Bear case

  • Operating cash flow of 382M barely covers its investment activities of (291M), with a coverage ratio of -1.31, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 382M provides thin coverage of dividend payments of (78M) with a -4.90 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 91M provides weak coverage of capital expenditures of 291M, with a 0.31 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 211M show weak coverage of depreciation charges of 145M, with a 1.46 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 1.62B provide limited buffer against comprehensive income items of (98M), which is -16.54x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Building Products & Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TT Trane Technologies plc 104.89 Bn 35.94 4.92 4.62 Bn
2 JCI Johnson Controls International plc 91.64 Bn 26.98 3.82 9.71 Bn
3 CARR CARRIER GLOBAL Corp 56.66 Bn 38.18 2.61 12.25 Bn
4 LII Lennox International Inc 19.91 Bn 24.71 3.83 1.77 Bn
5 CSL Carlisle Companies Inc 17.50 Bn 23.63 3.49 2.88 Bn
6 MAS Masco Corp /De/ 15.94 Bn 19.68 2.11 3.17 Bn
7 OC Owens Corning 13.83 Bn 13.90 1.63 5.61 Bn
8 WMS Advanced Drainage Systems, Inc. 13.26 Bn 28.18 4.44 1.45 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.38 2.00
EV to Cash from Ops. EV/CFO 16.39 13.48
EV to Debt EV to Debt 16.92 10.94
EV to EBIT EV/EBIT 29.68 24.16
EV to EBITDA EV/EBITDA 15.73 -11.14
EV to Free Cash Flow [EV/FCF] EV/FCF 68.81 46.78
EV to Market Cap EV to Market Cap 1.01 1.12
EV to Revenue EV/Rev 2.31 2.81
Price to Book Value [P/B] P/B 3.59 4.24
Price to Earnings [P/E] P/E 42.52 47.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.87 0.80
Dividend Payout Ratio % Div Payout % (Qtr) 53.60 11.22
Dividend per Basic Share Div per Share (Qtr) 1.12 0.71
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 86.15 10.90
Interest Coverage Int. cover (Qtr) 14.07 111.58
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -59.02 -24.93
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -14.12 61.26
Dividend Growth (1y) % Div 1y % (Qtr) 7.69 1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -63.49 -186.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -39.88 -57.93
EBIT Growth (1y) % EBIT 1y % (Qtr) -63.24 -102.26
EBT Growth (1y) % EBT 1y % (Qtr) -65.00 -299.15
EPS Growth (1y) % EPS 1y % (Qtr) -64.64 -598.34
FCF Growth (1y) % FCF 1y % (Qtr) -78.44 89.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -29.12 -3.62
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.03 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.13
Cash Ratio Cash Ratio (Qtr) 1.00 1.57
Current Ratio Curr Ratio (Qtr) 2.78 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 0.79
Interest Cover Ratio Int Coverage (Qtr) 14.07 111.58
Times Interest Earned Times Interest Earned (Qtr) 14.07 111.58
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 13.10 3.54
EBIT Margin % EBIT Margin % (Qtr) 7.79 1.23
EBT Margin % EBT Margin % (Qtr) 7.24 -1.76
Gross Margin % Gross Margin % (Qtr) 21.80 28.65
Net Profit Margin % Net Margin % (Qtr) 5.40 -3.80