-1.00%
12.61%
16.40%
20.94%
72.01%
70.39%
275.14%

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.

Market Data

Last Price 116.97
Change Percentage -1.00%
Open 118.1
Previous Close 118.15
Market Cap ( Millions) 8216
Volume 763102
Year High 122.87
Year Low 63.76
M A 50 112.2
M A 200 97.73

Financial Ratios

FCF Yield 5.77%
Dividend Yield 0.89%
ROE 25.67%
Debt / Equity 22.33%
Net Debt / EBIDTA 3.84%
Price To Book 4.91
Price Earnings Ratio 19.64
Price To FCF 17.33
Price To sales 2.82
EV / EBITDA 12.17

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Siding

Expected Growth : 4.5 %

What the company do ?

LP Siding from Louisiana-Pacific Corporation is a durable, low-maintenance exterior cladding option offering a range of styles, textures, and colors to enhance home exteriors.

Why we expect these perspectives ?

LP's siding segment growth is driven by increasing demand for durable and low-maintenance exterior products, favorable housing market trends, and market share gains from competitors. Additionally, LP's focus on innovative products, such as its SmartSide trim and siding, and strategic partnerships with builders and contractors contribute to its growth.

Segment nΒ°2 -> Oriented Strand Board

Expected Growth : 4.8 %

What the company do ?

Oriented Strand Board (OSB) from Louisiana-Pacific Corporation is a cost-effective, eco-friendly engineered wood product made from strands of wood pressed together with wax and resin.

Why we expect these perspectives ?

The 4.8% growth of Oriented Strand Board (OSB) from Louisiana-Pacific Corporation is driven by increasing demand for affordable and sustainable building materials, rising new home construction and remodeling activities, and growing adoption in industrial and commercial applications. Additionally, LP's strategic investments in capacity expansion, product innovation, and operational efficiency have contributed to the segment's growth.

Segment nΒ°3 -> Louisiana-Pacific South America

Expected Growth : 4.2 %

What the company do ?

Louisiana-Pacific South America is a subsidiary of Louisiana-Pacific Corporation, operating in South America, manufacturing and distributing building products.

Why we expect these perspectives ?

Louisiana-Pacific South America's 4.2% growth is driven by increasing demand for oriented strand board (OSB) and engineered wood products in the region, fueled by infrastructure development, housing growth, and government-backed construction projects. Additionally, the company's strategic expansion into new markets, such as Chile and Colombia, and its focus on operational efficiency and cost reduction also contribute to its growth.

Segment nΒ°4 -> Other

Expected Growth : 4.0 %

What the company do ?

The 'Other' segment from Louisiana-Pacific Corporation includes various products such as engineered wood products, I-joists, and laminated veneer lumber.

Why we expect these perspectives ?

Louisiana-Pacific Corporation's 4.0% growth in the 'Other' segment is driven by increasing demand for engineered wood products, particularly in the repair and remodel market. Additionally, the company's strategic investments in capacity expansion and operational efficiency have improved productivity, leading to higher sales volumes and revenue growth.

Louisiana-Pacific Corporation Products

Product Range What is it ?
Oriented Strand Board (OSB) A type of engineered wood made from strands of wood pressed together with adhesives, used for flooring, walls, and roofing.
Siding Exterior cladding products designed to protect and beautify homes, including lap, panel, and board products.
Engineered Wood Products (EWP) A range of products, including I-joists, laminated veneer lumber (LVL), and rim board, used in floor and roof construction.
Roofing A range of roofing products, including OSB, plywood, and specialty roofing products.
South America Products A range of products, including OSB, plywood, and MDF, designed for the South American market.

Louisiana-Pacific Corporation's Porter Forces

The threat of substitutes for Louisiana-Pacific Corporation is moderate due to the availability of alternative building materials such as steel and concrete.

The bargaining power of customers is low due to the fragmented nature of the construction industry, making it difficult for customers to negotiate prices.

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of raw materials, giving them some negotiating power.

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the building materials industry.

The intensity of rivalry is high due to the presence of several established players in the industry, leading to intense competition for market share.

Capital Structure

Value
Debt Weight 19.53%
Debt Cost 4.90%
Equity Weight 80.47%
Equity Cost 13.31%
WACC 11.67%
Leverage 24.28%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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BECN Beacon Roofing Supply, Inc., together with its subsidiaries, distributes residential and non-residential roofing materials, and complementary building products to contractors, home builders, building owners, lumberyards, and retailers. It offers pitched …
TREX Trex Company, Inc. manufactures and distributes decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. The company operates in two segments, Trex …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
116.97$
Current Price
116.97$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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