| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 6/6 |
IP Overview
International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas.
International Paper Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$56.60 |
| 52 Week High | US$38.38 |
| 52 Week Low | US$65.27 |
| Beta | 1.05 |
| 1 Month Change | -3.68% |
| 3 Month Change | -7.27% |
| 1 Year Change | 34.60% |
| 3 Year Change | 4.58% |
| 5 Year Change | 16.92% |
| Change since IPO | 97.73% |
Recent News & Updates
Is International Paper Company (NYSE:IP) Expensive For A Reason? A Look At Its Intrinsic Value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of International Paper...
Revisiting International Paper
I haven't written about International paper since late 2019, at that time looking at the stock's short-term outperformance. While a small holding still exists in my portfolio, it's not significant. I'm looking to get back into this paper giant at the right price - unfortunately that has been a hard thing to do for the past year or so. International Paper remains a fundamentally appealing cyclical stock at the right price. I show you where I would buy the company.
International Paper (NYSE:IP) Has Announced A Dividend Of US$0.51
The board of International Paper Company ( NYSE:IP ) has announced that it will pay a dividend of US$0.51 per share on...
Shareholder Returns
| IP | US Packaging | US Market | |
|---|---|---|---|
| 7D | -3.0% | -3.7% | -0.6% |
| 1Y | 34.6% | 28.9% | 33.8% |
Return vs Industry: IP exceeded the US Packaging industry which returned 28.9% over the past year.
Return vs Market: IP matched the US Market which returned 33.8% over the past year.
Price Volatility
| IP volatility | |
|---|---|
| IP Beta | 1.05 |
| Industry Beta | 0.95 |
| Market Beta | 1 |
Stable Share Price: IP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: IP's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1898 | 49,300 | Mark Sutton | https://www.internationalpaper.com |
International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas. It operates through three segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft.
International Paper Fundamentals Summary
| IP fundamental statistics | |
|---|---|
| Market Cap | US$22.12b |
| Earnings (TTM) | US$1.14b |
| Revenue (TTM) | US$21.34b |
19.4x
P/E Ratio1.0x
P/S RatioIs IP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| IP income statement (TTM) | |
|---|---|
| Revenue | US$21.34b |
| Cost of Revenue | US$14.96b |
| Gross Profit | US$6.38b |
| Expenses | US$5.24b |
| Earnings | US$1.14b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 27, 2021
| Earnings per share (EPS) | 2.90 |
| Gross Margin | 29.90% |
| Net Profit Margin | 5.33% |
| Debt/Equity Ratio | 85.0% |
How did IP perform over the long term?
See historical performance and comparisonDividends
3.6%
Current Dividend Yield71%
Payout RatioValuation
Is International Paper undervalued compared to its fair value and its price relative to the market?
19.44x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: IP ($56.6) is trading above our estimate of fair value ($46.31)
Significantly Below Fair Value: IP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: IP's PE Ratio (19.4x) is in line with the US Packaging industry average.
PE vs Market: IP is poor value based on its PE Ratio (19.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: IP is poor value based on its PEG Ratio (20.9x)
Price to Book Ratio
PB vs Industry: IP is good value based on its PB Ratio (2.6x) compared to the US Packaging industry average (3.3x).
Future Growth
How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
0.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IP's forecast earnings growth (0.9% per year) is below the savings rate (2%).
Earnings vs Market: IP's earnings (0.9% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: IP's earnings are forecast to grow, but not significantly.
Revenue vs Market: IP's revenue (1.4% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: IP's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IP's Return on Equity is forecast to be high in 3 years time (22%)
Past Performance
How has International Paper performed over the past 5 years?
-3.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IP has high quality earnings.
Growing Profit Margin: IP's current net profit margins (5.3%) are higher than last year (3%).
Past Earnings Growth Analysis
Earnings Trend: IP's earnings have declined by 3.9% per year over the past 5 years.
Accelerating Growth: IP's earnings growth over the past year (79.5%) exceeds its 5-year average (-3.9% per year).
Earnings vs Industry: IP earnings growth over the past year (79.5%) exceeded the Packaging industry 41%.
Return on Equity
High ROE: IP's Return on Equity (13.6%) is considered low.
Financial Health
How is International Paper's financial position?
Financial Position Analysis
Short Term Liabilities: IP's short term assets ($12.2B) exceed its short term liabilities ($8.6B).
Long Term Liabilities: IP's short term assets ($12.2B) do not cover its long term liabilities ($14.5B).
Debt to Equity History and Analysis
Debt Level: IP's debt to equity ratio (85%) is considered high.
Reducing Debt: IP's debt to equity ratio has reduced from 234.2% to 85% over the past 5 years.
Debt Coverage: IP's debt is well covered by operating cash flow (39.5%).
Interest Coverage: IP's interest payments on its debt are well covered by EBIT (5.2x coverage).
Balance Sheet
Dividend
What is International Paper current dividend yield, its reliability and sustainability?
3.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IP's dividend (3.62%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: IP's dividend (3.62%) is in the top 25% of dividend payers in the US market (3.6%)
Stability and Growth of Payments
Stable Dividend: IP's dividends per share have been stable in the past 10 years.
Growing Dividend: IP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.7%), IP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IP's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Mark Sutton (59 yo)
6.83yrs
Tenure
US$18,320,199
Compensation
Mr. Mark Stephan Sutton serves as Chief Executive Officer at International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman sinc...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD18.32M) is above average for companies of similar size in the US market ($USD11.33M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: IP's management team is considered experienced (4.3 years average tenure).
Board Members
Experienced Board: IP's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IP insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
International Paper Company's employee growth, exchange listings and data sources
Key Information
- Name: International Paper Company
- Ticker: IP
- Exchange: NYSE
- Founded: 1898
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$22.121b
- Shares outstanding: 390.83m
- Website: https://www.internationalpaper.com
Number of Employees
Location
- International Paper Company
- 6400 Poplar Avenue
- Memphis
- Tennessee
- 38197
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 22:04 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.