One-glance verdict
Undervalued
$107.41 our estimate vs market $70.05
Wall Street consensus: $87.79 (-18.3% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
Louisiana-Pacific Corporation
LPX · NYQ · Industrials · Building Products & Equipment
Current price
$70.05
52-week range
$62.18 - $100.34
Market cap
$4.90B
Balance sheet
Healthy
18.50x Strong cushion
Net debt $149.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 9/10 years.
- Reward Dividend yield is 1.7% with 45-year payout history.
- Risk Stock trades 306.7% above its 5-year average P/E.
- Risk Net debt grew 234.6% over 3 years.
What this company does
Louisiana-Pacific Corporation
Louisiana-Pacific Corporation (LPX) makes building materials like engineered wood siding and structural panels used in new homes and renovations, with most of its money coming from selling these products to builders and retailers in North America. This matters because their products are key components in building homes, so their success is tied to the health of the housing market.
How the company got here
Louisiana-Pacific Corporation (LP) was founded in 1972 as a spin-off from Georgia-Pacific. [1, 2, 3, 4, 8] The company was a pioneer in the building materials industry, notably being the first in the U.S. to commercially produce oriented strand board (OSB) panels in 1979. [1, 8] Over the years, LP has undergone significant restructuring, shifting its focus from commodity wood products to more specialized, branded building solutions. [2, 3] This strategic evolution included divesting some of its timberlands and lumber operations to concentrate on core businesses like siding and OSB. [3] The company relocated its headquarters from Portland, Oregon, to Nashville, Tennessee, in 2004 as part of this transformation. [1, 3]
What it actually does
LP Building Solutions manufactures and sells engineered wood building products used in new home construction, as well as for repair and remodeling projects. [5, 6, 9] These products are designed to be alternatives to traditional plywood and solid wood. [3] The company sells its products primarily to retailers, wholesalers, home builders, and industrial businesses across North America and South America. [5, 6, 7] LP's business is largely driven by the activity in the residential construction and renovation markets. [2]
Siding
The Siding segment is a key growth area for LP, focusing on branded exterior solutions. [2, 7] This part of the business produces engineered wood siding, trim, soffit, and fascia products. [5, 6, 9] These products are available either primed, meaning they are ready for painting, or pre-finished with various colors and styles, such as LP SmartSide trim and siding. [5, 6, 9] These are used by builders and remodelers for the exterior of homes and for outdoor structures like sheds. [7] This segment is a significant contributor to LP's overall revenue. [7]
Oriented Strand Board (OSB)
The Oriented Strand Board (OSB) segment is a foundational part of LP's business, important for generating cash and maintaining manufacturing scale. [2] This segment manufactures and distributes OSB structural panel products, which are engineered wood panels made from wood wafers pressed together with resin. [1, 3, 5, 6, 9] LP offers a range of OSB products, including value-added solutions like fire-rated sheathing (LP FlameBlock), air and water barriers (LP WeatherLogic), and premium sub-flooring (LP Legacy). [5, 6, 9] These products are essential structural components used in building homes. [5, 6, 9]
What management is betting on now
LP's management is focused on growing its branded siding business as a key engine for value creation, while continuing to leverage its OSB manufacturing capabilities for cash generation. [2] The company aims to be a leading building solutions provider by innovating and delivering high-quality, durable products. [12] A core part of their strategy involves sustainable practices, from responsible forest management to reducing energy use and emissions in their manufacturing processes. [10, 11, 12] They are also committed to developing products that are not only high-performing but also environmentally friendly, with some products being carbon-negative. [10]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$139.00M
FY2024 Q4
$43.00M
FY2025 Q1
$0.00
FY2025 Q2
$94.00M
FY2025 Q3
$5.00M
FY2025 Q4
$-8.00M
FY2026 Q1
$-99.00M
FY2026 Q2
$81.00M
Revenue
$664.00M
Net income
$26.00M
Diluted EPS
0.38
Operating cash flow
$140.00M
Free cash flow
$81.00M
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Sources
Revenue
$574.00M
Net income
$27.00M
Diluted EPS
0.39
Operating cash flow
$-38.00M
Free cash flow
$-99.00M
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Sources
Revenue
$566.00M
Net income
$-8.00M
Diluted EPS
-0.12
Operating cash flow
$67.00M
Free cash flow
$-8.00M
Fetching…
Sources
Revenue
$663.00M
Net income
$9.00M
Diluted EPS
0.13
Operating cash flow
$89.00M
Free cash flow
$5.00M
Fetching…
Sources
Revenue
$755.00M
Net income
$54.00M
Diluted EPS
0.77
Operating cash flow
$162.00M
Free cash flow
$94.00M
Fetching…
Sources
Revenue
$724.00M
Net income
$91.00M
Diluted EPS
1.30
Operating cash flow
$64.00M
Free cash flow
$0.00
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Sources
Revenue
$681.00M
Net income
$62.00M
Diluted EPS
0.90
Operating cash flow
$105.00M
Free cash flow
$43.00M
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Sources
Revenue
$722.00M
Net income
$90.00M
Diluted EPS
1.28
Operating cash flow
$183.00M
Free cash flow
$139.00M
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Sources
Is it cheap or expensive?
Fair value $107.41 vs current price $70.05
Wall Street consensus is the average analyst price target: $87.79 (-18.3% lower than our fair-value estimate).
Our most-likely fair value is $107.41 a share — about 53.3% above today's price of $70.05, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $149.0M. Interest coverage 18.5x.
Net debt
$149.00M
Interest coverage
18.50x
Louisiana-Pacific Corporation's profit covers its interest bill about 18.5 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
LPX
BASELINE
Louisiana-Pacific Corporation
Total debt $377.00M Interest coverage 18.50x This is the baseline the peer rows are being compared against.
Total debt $5.45B Interest coverage 1.64x -91% vs LPX Carries about 11.3x less debt cushion than LPX.
Total debt $549.25M Interest coverage 8.39x -55% vs LPX Carries about 2.2x less debt cushion than LPX.
Total debt $4.52B Interest coverage 3.13x -83% vs LPX Carries about 5.9x less debt cushion than LPX.
What you should know
The case for and against LPX
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 1.7% with 45-year payout history.
Risks
-
Stock trades 306.7% above its 5-year average P/E.
-
Net debt grew 234.6% over 3 years.
-
Operating margin compressed from 32.2% to 5.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
90.97x
Forward P/E
24.49x
P/B
2.81x
P/S
1.98x
EV/EBITDA
19.64x
PEG ratio
3.68x
Profitability
How much profit each dollar creates
Gross margin
18.0%
Operating margin
5.3%
Net margin
2.2%
ROE
3.1%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.22x
Current ratio
3.22x
Quick ratio
1.55x
Total debt
$377.00M
Total cash
$228.00M
Growth
How the business has been compounding
Revenue TTM
$2.47B
Revenue 5Y CAGR
-8.8%
EPS TTM
0.77
EPS 5Y CAGR
-46.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$258.00M
Free CF TTM
$91.00M
FCF margin
3.7%
Dividend
Shareholder payout
Yield
1.7%
Payout ratio
150.7%
Last ex-div date
2026-08-14