International Paper
Market Cap
US$19.9b
Last Updated
2020/11/27 23:25 UTC
Data Sources
Company Financials +
Executive Summary
International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and the Americas. More Details
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Adequate balance sheet average dividend payer.
Similar Companies
Share Price & News
How has International Paper's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: IP's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
2.5%
IP
0.9%
US Packaging
2.1%
US Market
1 Year Return
9.4%
IP
18.7%
US Packaging
19.8%
US Market
Return vs Industry: IP underperformed the US Packaging industry which returned 18.6% over the past year.
Return vs Market: IP underperformed the US Market which returned 19.7% over the past year.
Shareholder returns
| IP | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.5% | 0.9% | 2.1% |
| 30 Day | 17.9% | 11.2% | 8.1% |
| 90 Day | 37.2% | 21.9% | 6.0% |
| 1 Year | 15.3%9.4% | 21.4%18.7% | 22.5%19.8% |
| 3 Year | 4.4%-8.9% | 29.9%20.7% | 46.5%36.8% |
| 5 Year | 56.1%26.0% | 86.7%64.1% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is International Paper's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
International Paper (NYSE:IP) Has Compensated Shareholders With A Respectable 46% Return On Their Investment2 weeks ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In International Paper Company (NYSE:IP)2 weeks ago | Simply Wall St
Don't Buy International Paper Company (NYSE:IP) For Its Next Dividend Without Doing These ChecksValuation
Is International Paper undervalued compared to its fair value and its price relative to the market?
12.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IP ($51.07) is trading below our estimate of fair value ($57.84)
Significantly Below Fair Value: IP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IP is poor value based on its PE Ratio (40.6x) compared to the US Packaging industry average (23.5x).
PE vs Market: IP is poor value based on its PE Ratio (40.6x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: IP is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: IP is good value based on its PB Ratio (2.8x) compared to the US Packaging industry average (3.2x).
Next Steps
Future Growth
How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
50.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IP's forecast earnings growth (50.6% per year) is above the savings rate (2.2%).
Earnings vs Market: IP's earnings (50.6% per year) are forecast to grow faster than the US market (22% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IP's revenue (2.7% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: IP's revenue (2.7% 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 low in 3 years time (17.6%).
Next Steps
Past Performance
How has International Paper performed over the past 5 years?
5.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IP has a large one-off loss of $530.0M impacting its September 30 2020 financial results.
Growing Profit Margin: IP's current net profit margins (2.4%) are lower than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: IP's earnings have grown by 5.6% per year over the past 5 years.
Accelerating Growth: IP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IP had negative earnings growth (-64.1%) over the past year, making it difficult to compare to the Packaging industry average (-8.9%).
Return on Equity
High ROE: IP's Return on Equity (7%) is considered low.
Next Steps
Financial Health
How is International Paper's financial position?
Financial Position Analysis
Short Term Liabilities: IP's short term assets ($11.3B) exceed its short term liabilities ($8.5B).
Long Term Liabilities: IP's short term assets ($11.3B) do not cover its long term liabilities ($16.3B).
Debt to Equity History and Analysis
Debt Level: IP's debt to equity ratio (121.3%) is considered high.
Reducing Debt: IP's debt to equity ratio has reduced from 216.1% to 121.3% over the past 5 years.
Debt Coverage: IP's debt is well covered by operating cash flow (37.2%).
Interest Coverage: IP's interest payments on its debt are well covered by EBIT (4.2x coverage).
Balance Sheet
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Dividend
What is International Paper current dividend yield, its reliability and sustainability?
4.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IP's dividend (4.01%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: IP's dividend (4.01%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 high payout ratio (163%), IP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IP's dividends in 3 years are forecast to be covered by earnings (57.9% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Mark Sutton (58 yo)
6yrs
Tenure
US$15,924,647
Compensation
Mr. Mark Stephan Sutton serves as Chief Executive Officer at International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman sinc...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD15.92M) is above average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6yrs | US$15.92m | 0.13% $ 25.0m | |
| Senior VP & CFO | 2.42yrs | US$4.87m | 0.023% $ 4.6m | |
| Senior VP | 9yrs | US$4.11m | 0.023% $ 4.6m | |
| Senior Vice President of Industrial Packaging the Americas | 7.42yrs | US$4.66m | 0.015% $ 3.1m | |
| Senior Vice President | 3.92yrs | US$3.52m | 0.0075% $ 1.5m | |
| VP of Finance | no data | no data | 0.0032% $ 631.5k | |
| Chief Information Officer & VP | no data | no data | no data | |
| Vice President of Investor Relations | 3.33yrs | no data | no data | |
| Senior Vice President of Corporate Development | 0.92yr | no data | 0.0096% $ 1.9m | |
| Senior Vice President of Human Resources & Global Citizenship | 3.67yrs | no data | 0.011% $ 2.2m | |
| Senior Vice President & President of IP Europe | 0.92yr | no data | 0.0043% $ 848.7k | |
| Senior Vice President of Paper The Americas & India | 6yrs | US$4.23m | 0.0069% $ 1.4m |
3.8yrs
Average Tenure
56yo
Average Age
Experienced Management: IP's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6yrs | US$15.92m | 0.13% $ 25.0m | |
| Independent Director | 12.92yrs | US$297.41k | 0.00025% $ 49.8k | |
| Independent Director | 3.08yrs | US$327.40k | no data | |
| Independent Presiding Director | 2.83yrs | US$344.89k | 0.015% $ 3.1m | |
| Independent Director | 3.67yrs | US$304.54k | 0.0056% $ 1.1m | |
| Independent Director | 1.67yrs | US$307.41k | 0.0042% $ 844.7k | |
| Independent Director | 9.67yrs | US$285.02k | 0.0071% $ 1.4m | |
| Independent Director | 6.08yrs | US$322.43k | 0.0018% $ 354.6k | |
| Independent Director | 3.83yrs | US$296.23k | 0.0055% $ 1.1m | |
| Independent Director | 3yrs | US$297.41k | no data | |
| Independent Director | 5.75yrs | US$297.41k | 0.0012% $ 241.1k |
3.8yrs
Average Tenure
63yo
Average Age
Experienced Board: IP's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: IP insiders have only sold shares 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 company bio, 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$19.922b
- Shares outstanding: 393.10m
- Website: https://www.internationalpaper.com
Number of Employees
Location
- International Paper Company
- 6400 Poplar Avenue
- Memphis
- Tennessee
- 38197
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IP | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| INP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| IP * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0JCB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| INP | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| I1PC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
International Paper Company operates as a paper and packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and the Americas. It operates through three segments: I...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 23:25 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.