Louisiana-Pacific (LPX) AI Stock Analysis

• Market Cap: $6.07B
• Dividend Yield: 1.23%
• Average Volume (3M): 755.18K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 1.17
• Revenue Growth: -1.44%
• EPS Growth: -31.12%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.99
• Shares Outstanding: 69,640,960
• 10 Day Avg. Volume: 590,072
• 30 Day Avg. Volume: 755,181
• PEG Ratio: 0.13
• Price to Book (P/B): 4.40
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 17.42
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 8.32
• Enterprise Value/Ebitda: 11.34
• 1Y Price Target: $112.61
• Price Target Upside: 29.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $98.00 ▲(12.50% Upside)

Louisiana-Pacific's overall stock score reflects strong financial health and operational improvements, particularly in the Siding segment. However, technical indicators suggest a bearish trend, and challenges in the OSB market pose risks. The valuation is fair, but the mixed sentiment from the earnings call tempers enthusiasm.

Positive Factors

Siding Segment Growth

The Siding segment's record performance with 11% revenue growth highlights its strong market position and potential for sustained growth, driven by product innovation and market demand.

Operational Efficiency

Improved operational efficiency in both Siding and OSB segments enhances production capacity and cost management, supporting long-term profitability and competitive advantage.

Strong Cash Flow

Robust cash flow and liquidity position enable strategic investments and provide financial flexibility to navigate market challenges and capitalize on growth opportunities.

Negative Factors

OSB Market Challenges

The decline in OSB prices due to market conditions poses a risk to revenue and profitability, impacting overall financial performance and necessitating strategic adjustments.

Negative EBITDA Guidance for OSB

Projected negative EBITDA for the OSB segment indicates financial strain, requiring cost management and strategic focus to mitigate impact and stabilize earnings.

Soft Housing Market Impact

The soft housing market affects demand for building materials, particularly impacting OSB sales, which could lead to revenue volatility and necessitate market adaptation.

Louisiana-Pacific Business Overview & Revenue Model

Company Description

Louisiana-Pacific Corporation (LPX) is a leading manufacturer of engineered wood products and building materials, headquartered in Nashville, Tennessee. The company operates primarily in two sectors: the North American building products market and the global engineered wood products market. LPX's core products include oriented strand board (OSB), engineered wood siding, and other innovative building solutions that cater to residential, commercial, and industrial construction needs.

How the Company Makes Money

Louisiana-Pacific generates revenue primarily through the sale of its engineered wood products and building materials. The company's key revenue streams include sales of oriented strand board (OSB), which is widely used in residential and commercial construction for structural applications, as well as its other products such as SmartSide siding, which combines the aesthetics of traditional wood materials with enhanced durability. LPX also benefits from strategic partnerships with major distributors and builders, which help to expand its market reach. Additionally, the company capitalizes on favorable building trends and housing market dynamics, including new home construction and remodeling activities, which drive demand for its products. Economic factors, such as interest rates and housing starts, play a significant role in influencing the company's earnings as well.

Louisiana-Pacific Financial Statement Overview

Summary

Louisiana-Pacific demonstrates 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.88B	2.94B	2.58B	3.85B	4.55B	2.79B
Gross Profit	729.00M	831.00M	593.00M	1.50B	2.07B	868.00M
EBITDA	535.00M	530.00M	381.00M	1.30B	1.83B	751.00M
Net Income	298.00M	420.00M	178.00M	1.09B	1.38B	499.00M
Balance Sheet
Total Assets	2.66B	2.57B	2.44B	2.35B	2.19B	2.09B
Cash, Cash Equivalents and Short-Term Investments	333.00M	340.00M	222.00M	369.00M	358.00M	535.00M
Total Debt	378.00M	380.00M	378.00M	395.00M	397.00M	389.00M
Total Liabilities	914.00M	898.00M	880.00M	916.00M	955.00M	842.00M
Stockholders Equity	1.74B	1.67B	1.56B	1.43B	1.24B	1.23B
Cash Flow
Free Cash Flow	276.00M	422.00M	16.00M	730.00M	1.23B	582.00M
Operating Cash Flow	514.00M	605.00M	316.00M	1.14B	1.48B	659.00M
Investing Cash Flow	-254.00M	-183.00M	-376.00M	-146.00M	-247.00M	-49.00M
Financing Cash Flow	-240.00M	-292.00M	-77.00M	-982.00M	-1.39B	-272.00M

Louisiana-Pacific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 87.11 is below the 20-day moving average (MA) of 90.51, below the 50-day MA of 91.73, and below the 200-day MA of 93.59, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 14.15 is Positive, 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	―	$5.56B	17.19	9.83%	1.50%	-3.90%	-25.96%
LPX	―	$6.07B	20.55	17.53%	1.23%	-1.44%	-31.12%
SLVM	―	$1.64B	7.79	24.37%	4.43%	-4.03%	-5.27%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SUZ	―	$11.39B	8.05	18.34%	3.66%	11.48%	1773.12%
CLW	―	$283.08M	―	-10.47%	―	-21.76%	-1214.73%
MERC	―	$140.66M	―	-23.39%	14.29%	-2.16%	44.89%

Louisiana-Pacific Corporate Events

Louisiana-Pacific Announces Quarterly Dividend Payment

On October 30, 2025, Louisiana-Pacific Corporation announced a quarterly cash dividend of $0.28 per share, payable on November 21, 2025, to stockholders of record as of November 14, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and may enhance its market position by demonstrating financial stability and rewarding investor loyalty.

The most recent analyst rating on (LPX) stock is a Hold with a $98.00 price target. To see the full list of analyst forecasts on Louisiana-Pacific stock, see the LPX Stock Forecast page.

Louisiana-Pacific Corp’s Earnings Call: Mixed Outlook with Siding Strength

Louisiana-Pacific Corp’s recent earnings call painted a picture of mixed sentiment, with notable achievements in the Siding segment and strong operational efficiency, but also significant challenges in the OSB segment due to falling prices and negative EBITDA forecasts. The company remains resilient with a solid liquidity position, despite broader market and economic headwinds.

Louisiana-Pacific Corp Reports Mixed Q2 2025 Results

Louisiana-Pacific Corporation (LP Building Solutions) is a prominent manufacturer of engineered wood products, serving the construction industry with a diverse range of high-performance building solutions. Headquartered in Nashville, Tennessee, LP operates over 20 manufacturing facilities across the U.S., Canada, Chile, and Brazil.

Louisiana-Pacific Announces Quarterly Dividend for August

On August 1, 2025, Louisiana-Pacific Corporation announced a quarterly cash dividend of $0.28 per share, payable on August 29, 2025, to stockholders of record as of August 15, 2025. This announcement reflects the company’s ongoing commitment to providing value to its shareholders, potentially enhancing its market position and investor confidence.

The most recent analyst rating on (LPX) stock is a Hold with a $108.00 price target. To see the full list of analyst forecasts on Louisiana-Pacific stock, see the LPX Stock Forecast page.