IP Stock 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$46.45|
|52 Week High||US$65.27|
|52 Week Low||US$45.07|
|1 Month Change||-6.93%|
|3 Month Change||-22.48%|
|1 Year Change||-4.95%|
|3 Year Change||3.78%|
|5 Year Change||-13.71%|
|Change since IPO||62.27%|
Recent News & Updates
International Paper: Now An Upside - 'BUY'
I wrote about International Paper about two months back. The company, at that time, was unfavorable in terms of valuation. My stance was "HOLD". Since that time, the stock has declined nearly 14% in a market where the S&P 500 has gained 6.5%. My thesis, therefore, as it stood, was correct. Under current circumstances, things have changed. I would consider IP a "BUY" here, and one with a respectable conservative upside.
Is International Paper (NYSE:IP) A Risky Investment?
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
|IP||US Packaging||US Market|
Return vs Industry: IP underperformed the US Packaging industry which returned 9.1% over the past year.
Return vs Market: IP underperformed the US Market which returned 19.4% over the past year.
|IP Average Weekly Movement||3.6%|
|Packaging Industry Average Movement||4.0%|
|Market Average Movement||6.1%|
|10% most volatile stocks in US Market||14.8%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: IP is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: IP's weekly volatility (4%) has been stable over the past year.
About the Company
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|
Is IP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|IP income statement (TTM)|
|Cost of Revenue||US$15.34b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
|Earnings per share (EPS)||4.64|
|Net Profit Margin||8.20%|
How did IP perform over the long term?See historical performance and comparison
4.4%Current Dividend Yield
Is International Paper undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IP ($46.45) is trading below our estimate of fair value ($65.59)
Significantly Below Fair Value: IP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IP is good value based on its PE Ratio (10x) compared to the US Packaging industry average (22x).
PE vs Market: IP is good value based on its PE Ratio (10x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: IP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: IP is good value based on its PB Ratio (1.9x) compared to the US Packaging industry average (3.2x).
How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IP's earnings are forecast to decline over the next 3 years (-4.8% per year).
Earnings vs Market: IP's earnings are forecast to decline over the next 3 years (-4.8% per year).
High Growth Earnings: IP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: IP's revenue is expected to decline over the next 3 years (-1.5% per year).
High Growth Revenue: IP's revenue is forecast to decline over the next 3 years (-1.5% 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 (19.3%).
How has International Paper performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IP has high quality earnings.
Growing Profit Margin: IP's current net profit margins (8.2%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: IP's earnings have declined by 3.7% per year over the past 5 years.
Accelerating Growth: IP's earnings growth over the past year (264%) exceeds its 5-year average (-3.7% per year).
Earnings vs Industry: IP earnings growth over the past year (264%) exceeded the Packaging industry 48.8%.
Return on Equity
High ROE: IP's Return on Equity (18.7%) is considered low.
How is International Paper's financial position?
Financial Position Analysis
Short Term Liabilities: IP's short term assets ($9.9B) exceed its short term liabilities ($4.7B).
Long Term Liabilities: IP's short term assets ($9.9B) do not cover its long term liabilities ($15.2B).
Debt to Equity History and Analysis
Debt Level: IP's net debt to equity ratio (65.1%) is considered high.
Reducing Debt: IP's debt to equity ratio has reduced from 257.8% to 87.2% over the past 5 years.
Debt Coverage: IP's debt is well covered by operating cash flow (32.3%).
Interest Coverage: IP's interest payments on its debt are well covered by EBIT (5.8x coverage).
What is International Paper current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IP's dividend (4.41%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: IP's dividend (4.41%) is in the top 25% of dividend payers in the US market (3.61%)
Stability and Growth of Payments
Stable Dividend: IP's dividends per share have been stable in the past 10 years.
Growing Dividend: IP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.6%), IP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IP's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Sutton (59 yo)
Mr. Mark Stephan Sutton serves as Chief Executive Officer at International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman sinc...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD18.32M) is above average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: IP's management team is considered experienced (4.6 years average tenure).
Experienced Board: IP's board of directors are considered experienced (4.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
International Paper Company's employee growth, exchange listings and data sources
- Name: International Paper Company
- Ticker: IP
- Exchange: NYSE
- Founded: 1898
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$17.988b
- Shares outstanding: 387.26m
- Website: https://www.internationalpaper.com
Number of Employees
- International Paper Company
- 6400 Poplar Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/03 23:52|
|End of Day Share Price||2021/12/03 00:00|
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.