Louisiana-Pacific vs Simpson Manufacturing
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KIRA’s take AI analyst
I put Louisiana-Pacific and Simpson Manufacturing side by side, using each one’s latest annual report. Here is what stands out:
- Louisiana-Pacific is the larger business, with $2.7B of revenue in fiscal 2025 against $2.3B for Simpson Manufacturing.
- Simpson Manufacturing grew revenue faster (4.5%, against −7.9%).
- Simpson Manufacturing kept more of each dollar of sales as operating profit (19.6% operating margin, against 7.7%).
- Simpson Manufacturing turned more of its sales into free cash flow (12.8% FCF margin, against 3.4%).
- Simpson Manufacturing earned a higher return on the capital invested in it (17.5%, against 9.0%).
- Investors pay more for each dollar of Louisiana-Pacific’s earnings: a P/E of 92.3x against 19.9x for Simpson Manufacturing.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Louisiana-Pacific
LPX
1/11
Share count change
Simpson Manufacturing
SSD
10/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | LPX FY25 | SSD FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.0B | $7.5B |
| Revenue | $2.7B | $2.3B |
| Free cash flow | $91.0M | $298M |
| Net income | $146M | $345M |
| Growth | ||
| Revenue growth | −7.9% | 4.5% |
| 5-year growth | 2.5% | 13.0% |
| Share count change | −1.4% | −1.2% |
| Profitability | ||
| Gross margin | 21.8% | 45.9% |
| Operating margin | 7.7% | 19.6% |
| Net margin | 5.4% | 14.8% |
| FCF margin | 3.4% | 12.8% |
| Return on capital | 9.0% | 17.5% |
| Return on equity | 8.6% | 18.0% |
| Balance sheet | ||
| Net debt | $56.0M | −$84.1M |
| Net debt / EBITDA | 0.2x | −0.2x |
| Dividends and buybacks | $139M | $168M |
| Valuation & quality | ||
| P/E | 92.3x | 19.9x |
| Piotroski F-score | 5 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.