Louisiana Pacific Return On Equity vs. Shares Owned By Insiders

LPX Stock  USD 114.40  3.01  2.70%   
Based on the measurements of profitability obtained from Louisiana Pacific's financial statements, Louisiana Pacific's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Louisiana Pacific's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.11432241
Current Value
0.0746
Quarterly Volatility
0.33967846
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Louisiana Pacific's Price To Sales Ratio is fairly stable compared to the past year. EV To Sales is likely to rise to 2.14 in 2024, whereas Days Sales Outstanding is likely to drop 18.98 in 2024. At this time, Louisiana Pacific's Net Income Applicable To Common Shares is fairly stable compared to the past year. Net Income From Continuing Ops is likely to rise to about 316.6 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (93.5 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.170.2298
Way Down
Slightly volatile
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 Pacific's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more information on how to buy Louisiana Stock please use our How to Invest in Louisiana Pacific guide.
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 Shares Owned By Insiders 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 shares owned by insiders category among its peers making about  38.32  of Shares Owned By Insiders per Return On Equity. 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 Shares Owned By Insiders 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

Return On Equity

 = 

Net Income

Total Equity

 = 
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.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Louisiana Pacific

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
10.09 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.

Louisiana Shares Owned By Insiders Comparison

Louisiana Pacific is currently under evaluation in shares owned by insiders 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-89 M-93.5 M
Operating Income287 M275.4 M
Income Before Tax248 M221 M
Total Other Income Expense Net-39 M-41 M
Net Income178 M170.1 M
Income Tax Expense74 M58.6 M
Net Income Applicable To Common Shares1.2 B1.3 B
Net Income From Continuing Ops178 M316.6 M
Non Operating Income Net Other-71.1 M-67.5 M
Interest Income18 M11.5 M
Net Interest Income4.6 M4.8 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.
Pair CorrelationCorrelation Matching

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 Farming Thematic Idea Now

Farming
Farming Theme
Companies producing farming products and providing services for farmers. The Farming theme has 41 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 Farming 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.