Is the business good?
How good a business is LPX?
Louisiana-Pacific Corporation earns 5.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.1%
Return on invested capital · cost of capital 9.0% · 3.9 points below what the capital costs: growth destroys value
- Operating margin
- 4.8%
Operating margin · Building Products & Equipment median 16% · 12 months to Q1 2026
- Cash conversion
- −0.10×
Cash conversion · 0.89× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 26% |
| FY2021 | 44% |
| FY2022 | 32% |
| FY2023 | 11% |
| FY2024 | 18% |
| FY2025 | 7.7% |
Details›
- Gross margin12 months to Q1 2026
- 20%
- Operating margin12 months to Q1 2026
- 4.8%
- Net margin12 months to Q1 2026
- 3.2%
- Free cash flow margin
- −0.31%
- Revenue, trailing twelve months
- $2.56B
- Free cash flow, trailing twelve months
- −$8.0M
- Net income, trailing twelve months
- $82M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Products & Equipment
Ranks #18 of 18 by Smart Score