LPXLouisiana-Pacific Corporation
Is the business good?
The checks split: earnings fully cash-backed (4.9×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LPX?
Louisiana-Pacific Corporation earns 3.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.9 points below what the capital costs: growth destroys value
- Operating margin
- 3.0%
Operating margin · Building Products & Equipment median 9.3% · 12 months to Q2 2026
- Cash conversion
- 4.88×
Cash conversion · 1.70× a year ago · operating cash flow covers the operating profit after tax
- 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 Q2 2026
- 18%
- Operating margin12 months to Q2 2026
- 3.0%
- Net margin12 months to Q2 2026
- 2.2%
- Free cash flow margin
- −0.85%
- Revenue, trailing twelve months
- $2.47B
- Free cash flow, trailing twelve months
- −$21M
- Net income, trailing twelve months
- $54M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Building Products & Equipment
Ranks #14 of 19 by RyuScore