Louisiana-Pacific (LPX) AI Stock Analysis

• Market Cap: $6.60B
• Dividend Yield: 1.11%
• Average Volume (3M): 679.81K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.36
• Revenue Growth: 8.09%
• EPS Growth: 55.08%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 91
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.27
• Shares Outstanding: 69,589,134
• 10 Day Avg. Volume: 901,515
• 30 Day Avg. Volume: 679,806
• PEG Ratio: 12.55
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.91
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: 2.40
• 1Y Price Target: $108.50
• Price Target Upside: 17.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Louisiana-Pacific's strong financial performance and strategic corporate changes are significant strengths. The company's solid balance sheet and effective cost management support its stability. However, revenue volatility, industry risks, and moderate valuation metrics slightly temper the overall outlook. The company's strategic initiatives and robust earnings guidance further enhance its potential for growth.

Positive Factors

Balance Sheet

Balance sheet is strong.

Growth Strategy

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 Expenditure

Free cash flow will likely be modest over the next 2-3 years due to elevated capex.

EBITDA Margin

Guidance of static Siding EBITDA margin pressured the stock.

Macroeconomic Uncertainty

Near-term challenges include an uncertain macro backdrop and risk of disruptions/demand destruction from potential tariffs.

Louisiana-Pacific Business Overview & Revenue Model

Company Description

Louisiana-Pacific Corporation, together with its subsidiaries, manufactures and markets building products primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through four segments: Siding; Oriented Strand Board (OSB); Engineered Wood Products (EWP); and South America. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. The OSB segment manufactures and distributes OSB structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The EWP segment provides laminated veneer lumber and other related products; and LP SolidStart I-joists, which are primarily used in residential and commercial floorings, roofing systems, and other structural applications. The South America segment manufactures and distributes OSB structural panel and siding products. This segment also distributes and sells related products for the region's transition to wood frame construction. It also offers timber and timberlands and other products and services. The company sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. Louisiana-Pacific Corporation was incorporated in 1972 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

Louisiana-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 exhibits strong financial health with consistent improvements in profitability and efficient cash management. The balance sheet underscores financial stability with low leverage, while cash flow remains robust. However, revenue volatility and potential industry risks warrant attention.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 92.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 92.09 is above the 20-day moving average (MA) of 89.64, above the 50-day MA of 89.33, and below the 200-day MA of 100.92, indicating a neutral trend. The MACD of 1.46 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPX.

Louisiana-Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPI	74 Outperform	$6.15B	16.93	11.33%	1.31%	-6.06%	-24.97%
LPX	74 Outperform	$6.60B	16.78	24.41%	1.11%	8.09%	55.08%
SLVM	67 Neutral	$2.30B	8.23	31.83%	3.20%	0.11%	46.54%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%
CLW	60 Neutral	$483.77M	33.74	-8.15%	―	-15.03%	-233.06%
SUZ	58 Neutral	$11.75B	15.71	-17.36%	2.79%	―	―
MERC	51 Neutral	$274.84M	―	-17.96%	7.30%	-1.37%	60.42%

Louisiana-Pacific Corporate Events

Louisiana-Pacific Holds Annual Stockholders Meeting

On May 8, 2025, Louisiana-Pacific Corporation held its annual stockholders meeting where 64,135,018 shares were represented. Key outcomes included the election of three Class I directors, the ratification of Deloitte & Touche LLP as the independent auditor for 2025, and the approval of executive officer compensation.

The most recent analyst rating on (LPX) stock is a Hold with a $99.00 price target. To see the full list of analyst forecasts on Louisiana-Pacific stock, see the LPX Stock Forecast page.

Spark’s Take on LPX Stock

According to Spark, TipRanks’ AI Analyst, LPX is a Outperform.

Louisiana-Pacific’s strong financial performance and strategic corporate changes are significant strengths. The company’s solid balance sheet and effective cost management support its stability. However, revenue volatility, industry risks, and moderate valuation metrics slightly temper the overall outlook. The company’s strategic initiatives and robust earnings guidance further enhance its potential for growth.

To see Spark’s full report on LPX stock, click here.

Louisiana-Pacific Appoints Jason Ringblom as President

On April 2, 2025, Louisiana-Pacific Corporation announced the appointment of Jason Ringblom as President, effective April 7, 2025, to oversee all manufacturing and commercial operations. This move is part of LP’s strategic shift to streamline operations and enhance customer experience, positioning the company for growth. The reorganization includes the elimination of certain positions and the appointment of new leadership roles, aiming to integrate operations and optimize resource allocation for improved efficiency and customer engagement.

Louisiana-Pacific Appoints Kelly H. Barrett as Director

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.