📊 LPX Key Takeaways
Is Louisiana-Pacific Corp. (LPX) a Good Investment?
Louisiana-Pacific faces deteriorating operational fundamentals with revenue declining 7.9% YoY and critical negative operating cash flow of -$38M, signaling working capital stress despite positive net income. Returns on equity and assets are severely depressed at 1.6% and 1.0% respectively, indicating poor capital efficiency. While balance sheet leverage remains conservative, the persistent cash burn trajectory is unsustainable and threatens financial stability.
LPX maintains solid profitability and a very conservative balance sheet, with strong liquidity, low leverage, and ample interest coverage supporting resilience through cycles. However, revenue is contracting and free cash flow is thin due to elevated capex, indicating investment amid softer demand. Sustained margin discipline and better cash conversion are needed before a more constructive view.
Louisiana-Pacific Corp. Key Strengths (LPX)
- Strong liquidity cushion with current ratio 3.26x and $164M cash on hand
- Conservative capital structure with low debt-to-equity ratio of 0.20x
- Gross margin of 20% demonstrates some operational viability in core lumber business
- Strong liquidity (2.78x current, 1.53x quick) and low leverage (0.20x D/E)
- Healthy coverage and manageable debt (12.3x interest coverage; $292M cash vs. $348M debt)
- Resilient profitability (21.8% gross, 7.7% operating margins) despite revenue decline
LPX Stock Risks: Louisiana-Pacific Corp. Investment Risks
- Critical negative operating cash flow (-$38M) despite positive net income indicates earnings quality deterioration and working capital mismanagement
- Unsustainable negative free cash flow of -$99M with -17.2% FCF margin signals ongoing cash depletion from operations
- Cyclical revenue decline of 7.9% YoY combined with depressed margins shows business facing structural headwinds with pricing power erosion
- Top-line contraction (-7.9% YoY) indicating demand/price pressure
- Thin free cash flow (3.4% margin) due to high capex
- Earnings volatility signal (EPS -64.7% YoY vs. flat net income)
Key Metrics to Watch
- Operating cash flow inflection point and working capital efficiency recovery
- Revenue stabilization and gross margin defense in lumber market cycles
- Capital expenditure necessity and return on invested capital trends
- OSB and Siding ASPs and volumes
- Free cash flow margin and capex returns
Louisiana-Pacific Corp. (LPX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.26x current ratio provides a solid financial cushion.
LPX Profit Margin, ROE & Profitability Analysis
LPX vs Materials Sector: How Louisiana-Pacific Corp. Compares
How Louisiana-Pacific Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Louisiana-Pacific Corp. Stock Overvalued? LPX Valuation Analysis 2026
Based on fundamental analysis, Louisiana-Pacific Corp. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Louisiana-Pacific Corp. Balance Sheet: LPX Debt, Cash & Liquidity
LPX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Louisiana-Pacific Corp.'s revenue has declined by 35% over the 5-year period, indicating business contraction. The most recent EPS of $2.46 reflects profitable operations.
LPX Revenue Growth, EPS Growth & YoY Performance
LPX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $574.0M | $27.0M | $0.39 |
| Q3 2025 | $663.0M | $9.0M | $0.13 |
| Q2 2025 | $755.0M | $54.0M | $0.77 |
| Q1 2025 | $724.0M | $91.0M | $1.30 |
| Q3 2024 | $722.0M | -$20.0M | $1.28 |
| Q2 2024 | $611.0M | $1.0M | $0.02 |
| Q1 2024 | $584.0M | $21.0M | $0.29 |
| Q3 2023 | $728.0M | -$20.0M | $1.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Louisiana-Pacific Corp. Dividends, Buybacks & Capital Allocation
LPX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Louisiana-Pacific Corp. (CIK: 0000060519)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LPX
What is the AI rating for LPX?
Louisiana-Pacific Corp. (LPX) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LPX's key strengths?
Claude: Strong liquidity cushion with current ratio 3.26x and $164M cash on hand. Conservative capital structure with low debt-to-equity ratio of 0.20x. ChatGPT: Strong liquidity (2.78x current, 1.53x quick) and low leverage (0.20x D/E). Healthy coverage and manageable debt (12.3x interest coverage; $292M cash vs. $348M debt).
What are the risks of investing in LPX?
Claude: Critical negative operating cash flow (-$38M) despite positive net income indicates earnings quality deterioration and working capital mismanagement. Unsustainable negative free cash flow of -$99M with -17.2% FCF margin signals ongoing cash depletion from operations. ChatGPT: Top-line contraction (-7.9% YoY) indicating demand/price pressure. Thin free cash flow (3.4% margin) due to high capex.
What is LPX's revenue and growth?
Louisiana-Pacific Corp. reported revenue of $574.0M.
Does LPX pay dividends?
Louisiana-Pacific Corp. pays dividends, with $21.0M distributed to shareholders in the trailing twelve months.
Where can I find LPX SEC filings?
Official SEC filings for Louisiana-Pacific Corp. (CIK: 0000060519) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LPX's EPS?
Louisiana-Pacific Corp. has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LPX's fundamental grade?
Based on our AI fundamental analysis in May 2026, Louisiana-Pacific Corp. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LPX stock overvalued or undervalued?
Valuation metrics for LPX: ROE of 1.6% (sector avg: 14%), net margin of 4.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is LPX's AI grade for 2026?
Our dual AI analysis gives Louisiana-Pacific Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LPX's free cash flow?
Louisiana-Pacific Corp.'s operating cash flow is $-38.0M, with capital expenditures of $61.0M. FCF margin is -17.2%.
How does LPX compare to other Materials stocks?
Vs Materials sector averages: Net margin 4.7% (avg: 10%), ROE 1.6% (avg: 14%), current ratio 3.26 (avg: 1.6).