Louisiana Pacific Return On Equity vs. Return On Asset
| LPX Stock | USD 114.40 3.01 2.70% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.11432241 | Current Value 0.0746 | Quarterly Volatility 0.33967846 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.17 | 0.2298 |
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For Louisiana Pacific profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Louisiana Pacific to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Louisiana Pacific utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Louisiana Pacific's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Louisiana Pacific over time as well as its relative position and ranking within its peers.
Louisiana |
Louisiana Pacific's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Paper & Forest Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Louisiana Pacific. If investors know Louisiana will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Louisiana Pacific listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.21) | Dividend Share 1.02 | Earnings Share 5.81 | Revenue Per Share 40.968 | Quarterly Revenue Growth (0.01) |
The market value of Louisiana Pacific is measured differently than its book value, which is the value of Louisiana that is recorded on the company's balance sheet. Investors also form their own opinion of Louisiana Pacific's value that differs from its market value or its book value, called intrinsic value, which is Louisiana Pacific's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Louisiana Pacific's market value can be influenced by many factors that don't directly affect Louisiana Pacific's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Louisiana Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Louisiana Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Louisiana Pacific's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Louisiana Pacific Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Louisiana Pacific's current stock value. Our valuation model uses many indicators to compare Louisiana Pacific value to that of its competitors to determine the firm's financial worth. Louisiana Pacific is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in return on asset category among its peers reporting about 0.52 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Louisiana Pacific is roughly 1.92 . At this time, Louisiana Pacific's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Louisiana Pacific's earnings, one of the primary drivers of an investment's value.Louisiana Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Louisiana Pacific |
| = | 0.26 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Louisiana Pacific |
| = | 0.14 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Louisiana Return On Asset Comparison
Louisiana Pacific is currently under evaluation in return on asset category among its peers.
Louisiana Pacific Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Louisiana Pacific, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Louisiana Pacific will eventually generate negative long term returns. The profitability progress is the general direction of Louisiana Pacific's change in net profit over the period of time. It can combine multiple indicators of Louisiana Pacific, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -89 M | -93.5 M | |
| Operating Income | 287 M | 275.4 M | |
| Income Before Tax | 248 M | 221 M | |
| Total Other Income Expense Net | -39 M | -41 M | |
| Net Income | 178 M | 170.1 M | |
| Income Tax Expense | 74 M | 58.6 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.3 B | |
| Net Income From Continuing Ops | 178 M | 316.6 M | |
| Non Operating Income Net Other | -71.1 M | -67.5 M | |
| Interest Income | 18 M | 11.5 M | |
| Net Interest Income | 4.6 M | 4.8 M | |
| Change To Netincome | -104.4 M | -99.2 M | |
| Net Income Per Share | 2.47 | 2.60 | |
| Income Quality | 1.78 | 2.11 | |
| Net Income Per E B T | 0.72 | 0.60 |
Louisiana Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Louisiana Pacific. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Louisiana Pacific position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Louisiana Pacific's important profitability drivers and their relationship over time.
Use Louisiana Pacific in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Louisiana Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Louisiana Pacific will appreciate offsetting losses from the drop in the long position's value.Louisiana Pacific Pair Trading
Louisiana Pacific Pair Trading Analysis
The ability to find closely correlated positions to Louisiana Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Louisiana Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Louisiana Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Louisiana Pacific to buy it.
The correlation of Louisiana Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Louisiana Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Louisiana Pacific moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Louisiana Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Louisiana Pacific position
In addition to having Louisiana Pacific in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Investor Favorites Thematic Idea Now
Investor Favorites
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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Additional Tools for Louisiana Stock Analysis
When running Louisiana Pacific's price analysis, check to measure Louisiana Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Louisiana Pacific is operating at the current time. Most of Louisiana Pacific's value examination focuses on studying past and present price action to predict the probability of Louisiana Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Louisiana Pacific's price. Additionally, you may evaluate how the addition of Louisiana Pacific to your portfolios can decrease your overall portfolio volatility.