IP

International PaperNYSE:IP Stock Report

Market Cap

US$22.1b

7D

-3.0%

1Y

34.6%

Updated

19 Sep, 2021

Data

Company Financials +
IP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends6/6

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

Avery Dennison

NYSE:AVY

US$17.8b

Packaging Corporation of America

NYSE:PKG

US$13.3b

WestRock

NYSE:WRK

US$13.3b

Sealed Air

NYSE:SEE

US$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for International Paper
Historical stock prices
Current Share PriceUS$56.60
52 Week HighUS$38.38
52 Week LowUS$65.27
Beta1.05
1 Month Change-3.68%
3 Month Change-7.27%
1 Year Change34.60%
3 Year Change4.58%
5 Year Change16.92%
Change since IPO97.73%

Recent News & Updates

Sep 16
Is International Paper Company (NYSE:IP) Expensive For A Reason? A Look At Its Intrinsic Value

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...

Aug 19

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.

Aug 04
International Paper (NYSE:IP) Has Announced A Dividend Of US$0.51

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

IPUS PackagingUS Market
7D-3.0%-3.7%-0.6%
1Y34.6%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

Is IP's price volatile compared to industry and market?
IP volatility
IP Beta1.05
Industry Beta0.95
Market Beta1

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

FoundedEmployeesCEOWebsite
189849,300Mark Suttonhttps://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

How do International Paper's earnings and revenue compare to its market cap?
IP fundamental statistics
Market CapUS$22.12b
Earnings (TTM)US$1.14b
Revenue (TTM)US$21.34b

19.4x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IP income statement (TTM)
RevenueUS$21.34b
Cost of RevenueUS$14.96b
Gross ProfitUS$6.38b
ExpensesUS$5.24b
EarningsUS$1.14b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)2.90
Gross Margin29.90%
Net Profit Margin5.33%
Debt/Equity Ratio85.0%

How did IP perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

71%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.