Louisiana-Pacific Corporation Common Stock (LPX)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Louisiana-Pacific as a Graham-style bargain hunter and Buffett-style business appraiser. It sells engineered wood siding and oriented strand board tied to housing and repair/remodel cycles. Its Siding segment may have some brand and specification advantages, but the combined enterprise earns only 3.10% on equity and 2.66% on capital employed, per FairStock calculations, which suggests little durable moat at present. The recent record is deteriorating: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $664.0M, net income $26.0M, and diluted EPS $0.38, versus fiscal Q2 2025 revenue of $755.0M, net income $54.0M, and diluted EPS $0.77. For FY2025, revenue was $2.7B, net income $146.0M, and diluted EPS $2.08, down sharply from FY2024's $2.9B, $420.0M, and $5.89. FairStock flags this as a SLOW GROWER — Shrinking, with profit falling 21.8% a year over five years. Financial health is mixed: debt-to-equity is modest at 0.22 and Altman Z-score 4.67, but trailing free cash flow is -$21.0M. Valuation offers no margin of safety: at the 2026-10-13 close of $66.81, the FairStock P/E is 86.77, P/B 2.68, EV/EBITDA 19.84, and Graham Number $20.79, implying a -221.36% margin of safety. I would need evidence of normalized housing demand, restored margins, and positive cash generation before calling this a value proposition.

In plain English: Louisiana-Pacific makes wood siding and oriented strand board used in new homes, repairs, remodeling, and outdoor structures. Lately the business has weakened: sales and profits are falling, and the company used more cash than it generated over the past year. At the recent price, the stock looks expensive compared with current earnings and accounting value, even though debt is modest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer