As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Louisiana-Pacific Corporation (NYSE: LPX).
Louisiana-Pacific is primarily an oriented strand board producer, while offering engineered wood siding and engineered wood products used in home construction. The company is largely exposed to the North American housing market but has also established capacity in Brazil and Chile.
A quick look at the share price history for Louisiana-Pacific (below) over the past twelve months shows that the price is up 65%. Here’s why the company is undervalued.
Summary
Market Cap: $5.06 Billion
Enterprise Value: $4.92 Billion
Operating Earnings
Operating Earnings: $652 Million
Acquirer’s Multiple
Acquirer’s Multiple: 7.49
Free Cash Flow (TTM)
Free Cash Flow: $582 Million
FCF/EV Yield
FCF/EV Yield: 12%
Other Indicators
Piotroski F-Score: 8
Altman Z-Score: 7.1
Beneish M-Score: -2.85
Shareholder Yield
Shareholder Yield: 5%
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