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If You Invested $1000 in Louisiana-Pacific a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Louisiana-Pacific (LPX - Free Report) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?
Louisiana-Pacific's Business In-Depth
With that in mind, let's take a look at Louisiana-Pacific's main business drivers.
Louisiana-Pacific Corporation is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction. Currently, the company operates 20 moderns, strategically located facilities in the United States and Canada, two facilities in Chile and one facility in Brazil. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.
The company has four reportable segments — Siding (contributing 34.4% of 2020 net sales), Oriented Strand Board or OSB (43.8%), Engineered Wood Products or EWP (14%) and South America (6.1%). Notably, revenues from Other sources and Inter-segment sales accounted for 1.8% of its total net sales.
Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.
OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.
EWP segment comprises LP SolidStart I-Joist (IJ), Laminated Veneer Lumber (LVL) and Laminated Strand Lumber (LSL) and other related products.
South America segment manufactures and distributes OSB and siding products in South America and certain export markets.South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Louisiana-Pacific ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2011 would be worth $5,422.47, or a gain of 442.25%, as of March 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 204.58% and the price of gold went up 16.15% over the same time frame.
Analysts are forecasting more upside for LPX too.
Louisiana-Pacific's fourth-quarter 2020 earnings and revenues beat analysts’ expectations by 9.2% and 8.9%, respectively, and also improved significantly year over year. Gross margin expanded to 40.8% from 13% in the quarter. SG&A expenses, as a percentage of sales, improved 450 bps year over year, given operating efficiencies achieved throughout its network. In 2020, the company’s net revenues and adjusted EBITDA grew 20.7% and 273.7%, respectively, on a year-over-year basis. Solid repair and remodeling activities, and ample liquidity have been benefiting the company to tide over the pandemic. Moreover, strong SmartSide strand performance, increase in OSB pricing, favorable resin costs, operational efficiency, cost-containment efforts and resilient housing market prospects will likely drive growth.
The stock is up 15.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.
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If You Invested $1000 in Louisiana-Pacific a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Louisiana-Pacific (LPX - Free Report) ten years ago? It may not have been easy to hold on to LPX for all that time, but if you did, how much would your investment be worth today?
Louisiana-Pacific's Business In-Depth
With that in mind, let's take a look at Louisiana-Pacific's main business drivers.
Louisiana-Pacific Corporation is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction. Currently, the company operates 20 moderns, strategically located facilities in the United States and Canada, two facilities in Chile and one facility in Brazil. It also operates facilities through a joint venture. The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures.
The company has four reportable segments — Siding (contributing 34.4% of 2020 net sales), Oriented Strand Board or OSB (43.8%), Engineered Wood Products or EWP (14%) and South America (6.1%). Notably, revenues from Other sources and Inter-segment sales accounted for 1.8% of its total net sales.
Siding segment consists of LP SmartSide trim and siding, as well as LP Outdoor Building Solutions innovative products for premium outdoor buildings.
OSB segment manufactures and distributes OSB structural panel products including LP OSB, LP TechShield radiant barrier, LP TopNotch sub-flooring, LP Legacy super tough, moisture-resistant sub-flooring, LP WeatherLogic air & water barrier and LP FlameBlock fire-rated sheathing.
EWP segment comprises LP SolidStart I-Joist (IJ), Laminated Veneer Lumber (LVL) and Laminated Strand Lumber (LSL) and other related products.
South America segment manufactures and distributes OSB and siding products in South America and certain export markets.South America segment manufactures and distributes OSB and siding products in South America and certain export markets.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Louisiana-Pacific ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2011 would be worth $5,422.47, or a gain of 442.25%, as of March 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 204.58% and the price of gold went up 16.15% over the same time frame.
Analysts are forecasting more upside for LPX too.
Louisiana-Pacific's fourth-quarter 2020 earnings and revenues beat analysts’ expectations by 9.2% and 8.9%, respectively, and also improved significantly year over year. Gross margin expanded to 40.8% from 13% in the quarter. SG&A expenses, as a percentage of sales, improved 450 bps year over year, given operating efficiencies achieved throughout its network. In 2020, the company’s net revenues and adjusted EBITDA grew 20.7% and 273.7%, respectively, on a year-over-year basis. Solid repair and remodeling activities, and ample liquidity have been benefiting the company to tide over the pandemic. Moreover, strong SmartSide strand performance, increase in OSB pricing, favorable resin costs, operational efficiency, cost-containment efforts and resilient housing market prospects will likely drive growth.
The stock is up 15.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021. The consensus estimate has moved up as well.