LPXLouisiana-Pacific Corporation (LPX) exhibits a mixed investment profile. Fundamentally, it shows solid profitability and a reasonable valuation, but recent performance has been weak. Thematic exposure is moderate, and technical indicators suggest a cautious short-to-medium term outlook. It may appeal to value-oriented investors seeking exposure to the building materials sector, but significant upside catalysts are not immediately apparent.
LPX operates within the building solutions sector, which is influenced by housing starts and renovation trends. While there's a long-term trend towards urbanization and infrastructure development, the sector is cyclical and sensitive to interest rates and consumer confidence. The company's focus on engineered wood products provides some differentiation, but it doesn't align strongly with high-growth tech or sustainability themes.
LPX demonstrates solid financial health, with improving profitability and a manageable debt level. Valuation metrics are generally attractive, especially considering its historical performance. The company's ability to generate cash flow and its consistent dividend payments are positive attributes.
LPX is trading below its 50-day and 200-day moving averages, indicating a bearish short-term trend. Momentum indicators are mixed, with some suggesting oversold conditions and others pointing to continued weakness. The stock has experienced significant declines over the past year, and a sustained uptrend is not yet established.
| Factor | Score |
|---|---|
| Housing Market Trends | 60 |
| Infrastructure Spending | 50 |
| Sustainable Materials | 70 |
| Interest Rate Sensitivity | 40 |
| Competitive Landscape | 60 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 80 |
| Growth | 65 |
| Balance Sheet Health | 85 |
| Cash Flow | 75 |
| Dividend Yield | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 55 |
| Support & Resistance | 65 |
| Short-term Performance | 30 |
Consistent Earnings Surprises
The company has exceeded earnings per share (EPS) estimates in the last 4 reported quarters, with an average surprise of +22.5%, indicating strong operational execution and forecasting accuracy.
Undervalued Relative to Industry
The Price-to-Earnings (P/E) ratio of 15.5 is below the industry average of 18.2, suggesting the stock may be undervalued given its earnings potential.
Elevated Price-to-Sales Ratio
The trailing Price-to-Sales (P/S) ratio of 2.9, while lower than the quarterly P/S of 8.8 (Q1 2025), remains a point of consideration, especially if revenue growth falters.
Declining Net Margins
Net profit margins have decreased from 35.2% in 2021 to 14.3% in 2024, signaling potential pressure on profitability due to increased costs or competitive pricing.
May 2025
20
Ex-Dividend Date
June 2025
3
Next Dividend Date
August 2025
6
Next Earnings Date
H: $1.27
A: $1.14
L: $0.89
H: 799.60M
A: 749.39M
L: 708.00M
Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions for applications in new home construction, repair and remodeling, and outdoor structure markets. It operates through three segments: Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The Siding segment consists of a portfolio of engineered wood siding, trim, soffit, and fascia products, including LP SmartSide trim and siding, LP SmartSide ExpertFinish trim and siding, LP BuilderSeries lap siding, and LP outdoor building solutions. The OSB segment manufactures and distributes OSB structural panel products, including the value-added OSB product portfolio comprising LP Structural Solutions, which includes LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-floorings, LP NovaCore thermal insulated sheathing, LP FlameBlock fire-rated sheathing, and LP TopNotch 350 durable sub-flooring. The LPSA segment manufactures and distributes OSB structural panel and siding solutions. This segment distributes and sells a variety of companion products for the region's transition to wood frame construction. The company sells its products primarily to retailers, wholesalers, home building, and industrial businesses in North America, South America, Asia, Australia, and Europe. Louisiana-Pacific Corporation was incorporated in 1972 and is headquartered in Nashville, Tennessee.
103.40 USD
The 39 analysts offering 1 year price forecasts for LPX have a max estimate of 137.00 and a min estimate of 71.00.