International Paper (IP): Reassessing Valuation After Louisville Facility Closure and Job Cuts

Operational shake up at Louisville and what it could mean for investors

International Paper (IP) is closing its Louisville facility on Progress Boulevard, cutting 93 jobs in December. Investors are weighing what this operational reshuffle signals for costs, demand, and the stock’s next move.

See our latest analysis for International Paper.

That backdrop helps explain why, even with an operational reset like Louisville, International Paper’s 1 month share price return of 7.54% contrasts with a much weaker year to date share price return and a still respectable 3 year total shareholder return. This suggests that longer term holders have fared better than recent entrants.

If this kind of restructuring has you thinking about where capital might work harder, it could be worth scanning fast growing stocks with high insider ownership as a starting list of potential ideas.

With the stock down sharply year to date yet trading at a hefty discount to analyst targets and some estimates of intrinsic value, is International Paper now mispriced value, or is the market already factoring in weaker growth ahead?

Most Popular Narrative: 18.7% Undervalued

With International Paper closing at $39.06 against a narrative fair value near $48, followers see meaningful upside tied to execution on its reshaping plan.

The planned $1.5 billion divestiture of the underperforming Global Cellulose Fiber operations is seen as a concrete step toward sharpening the portfolio focus and improving consolidated return on capital.

Supportive analysts argue that the current share price no longer embeds excessive optimism around the new leadership transition.

Read the complete narrative.

Want to see what earnings power this leaner portfolio is aiming for? The narrative leans on ambitious revenue, margin, and profit trajectories that might surprise you.

Result: Fair Value of $48.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent mill reliability problems and sluggish containerboard demand could delay margin gains, challenging the upbeat earnings and valuation narrative around International Paper.

Find out about the key risks to this International Paper narrative.

Build Your Own International Paper Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A great starting point for your International Paper research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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