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International Paper

NYSE:IP
Snowflake Description

6 star dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IP
NYSE
$17B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. The last earnings update was 80 days ago. More info.


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IP Share Price and Events
7 Day Returns
3%
NYSE:IP
-0.2%
US Packaging
-1.2%
US Market
1 Year Returns
-17.9%
NYSE:IP
6.1%
US Packaging
3.4%
US Market
IP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
International Paper (IP) 3% -0.8% -3.2% -17.9% -4.2% -13.5%
US Packaging -0.2% 1.6% 4.7% 6.1% 24.3% 27.2%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • IP underperformed the Packaging industry which returned 6.1% over the past year.
  • IP underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
IP
Industry
5yr Volatility vs Market

Value

 Is International Paper undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of International Paper to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for International Paper.

NYSE:IP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:IP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.82 (1 + (1- 21%) (65.14%))
1.162
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.162 * 5.96%)
9.66%

Discounted Cash Flow Calculation for NYSE:IP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for International Paper is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:IP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.66%)
2020 1,778.50 Analyst x4 1,621.88
2021 1,865.00 Analyst x1 1,550.99
2022 1,882.26 Est @ 0.93% 1,427.50
2023 1,909.88 Est @ 1.47% 1,320.89
2024 1,945.13 Est @ 1.85% 1,226.81
2025 1,986.19 Est @ 2.11% 1,142.39
2026 2,031.81 Est @ 2.3% 1,065.72
2027 2,081.12 Est @ 2.43% 995.46
2028 2,133.52 Est @ 2.52% 930.65
2029 2,188.59 Est @ 2.58% 870.61
Present value of next 10 years cash flows $12,152.92
NYSE:IP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,188.59 × (1 + 2.73%) ÷ (9.66% – 2.73%)
$32,460.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $32,460.06 ÷ (1 + 9.66%)10
$12,912.38
NYSE:IP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $12,152.92 + $12,912.38
$25,065.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $25,065.29 / 397.33
$63.08
NYSE:IP Discount to Share Price
Calculation Result
Value per share (USD) From above. $63.08
Current discount Discount to share price of $43.24
= -1 x ($43.24 - $63.08) / $63.08
31.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price International Paper is available for.
Intrinsic value
31%
Share price is $43.24 vs Future cash flow value of $63.08
Current Discount Checks
For International Paper to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • International Paper's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • International Paper's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for International Paper's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are International Paper's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:IP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.26
NYSE:IP Share Price ** NYSE (2019-07-19) in USD $43.24
United States of America Packaging Industry PE Ratio Median Figure of 15 Publicly-Listed Packaging Companies 17.52x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of International Paper.

NYSE:IP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:IP Share Price ÷ EPS (both in USD)

= 43.24 ÷ 4.26

10.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Paper is good value based on earnings compared to the US Packaging industry average.
  • International Paper is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does International Paper's expected growth come at a high price?
Raw Data
NYSE:IP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-7.1%per year
United States of America Packaging Industry PEG Ratio Median Figure of 14 Publicly-Listed Packaging Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:IP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.14x ÷ -7.1%

-1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Paper earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on International Paper's assets?
Raw Data
NYSE:IP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.66
NYSE:IP Share Price * NYSE (2019-07-19) in USD $43.24
United States of America Packaging Industry PB Ratio Median Figure of 20 Publicly-Listed Packaging Companies 3.81x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
NYSE:IP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:IP Share Price ÷ Book Value per Share (both in USD)

= 43.24 ÷ 18.66

2.32x

* Primary Listing of International Paper.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • International Paper is good value based on assets compared to the US Packaging industry average.
X
Value checks
We assess International Paper's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check)
  5. International Paper has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is International Paper expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is International Paper expected to grow at an attractive rate?
  • International Paper's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • International Paper's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • International Paper's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:IP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:IP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -7.1%
NYSE:IP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -0.7%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:IP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:IP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 22,782 3
2020-12-31 22,891 3,136 1,683 12
2019-12-31 23,069 3,388 1,892 11
NYSE:IP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 23,328 3,296 1,730
2018-12-31 23,306 3,226 1,667
2018-09-30 23,066 3,593 2,819
2018-06-30 22,682 1,943 2,623
2018-03-31 22,232 1,787 2,279
2017-12-31 21,743 1,757 2,110
2017-09-30 19,829 1,481 753
2017-06-30 19,578 2,531 699
2017-03-31 19,517 2,491 655
2016-12-31 19,495 2,478 802
2016-09-30 21,141 2,556 869
2016-06-30 21,566 3,052 777

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • International Paper's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • International Paper's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:IP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from International Paper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 4.26 4.74 3.90 5.00
2019-12-31 4.70 4.86 4.58 5.00
NYSE:IP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.26
2018-12-31 4.07
2018-09-30 6.85
2018-06-30 6.35
2018-03-31 5.52
2017-12-31 5.11
2017-09-30 1.83
2017-06-30 1.70
2017-03-31 1.59
2016-12-31 1.95
2016-09-30 2.11
2016-06-30 1.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • International Paper is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess International Paper's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
International Paper has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has International Paper performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare International Paper's growth in the last year to its industry (Packaging).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • International Paper's year on year earnings growth rate has been positive over the past 5 years.
  • International Paper's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • International Paper's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.
Earnings and Revenue History
International Paper's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from International Paper Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:IP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 23,328.00 1,730.00 3,805.00
2018-12-31 23,306.00 1,667.00 3,784.00
2018-09-30 23,066.00 2,819.00 3,214.00
2018-06-30 22,682.00 2,623.00 3,191.00
2018-03-31 22,232.00 2,279.00 3,597.00
2017-12-31 21,743.00 2,110.00 3,585.00
2017-09-30 19,829.00 753.00 2,920.00
2017-06-30 19,578.00 699.00 2,849.00
2017-03-31 19,517.00 655.00 2,776.00
2016-12-31 19,495.00 802.00 3,331.00
2016-09-30 21,141.00 869.00 2,921.00
2016-06-30 21,566.00 777.00 2,939.00
2016-03-31 21,958.00 964.00 2,984.00
2015-12-31 20,675.00 853.00 2,787.00
2015-09-30 22,865.00 903.00 3,130.00
2015-06-30 23,225.00 1,022.00 3,240.00
2015-03-31 23,410.00 969.00 3,283.00
2014-12-31 23,617.00 568.00 3,314.00
2014-09-30 23,522.00 1,220.00 3,286.00
2014-06-30 23,446.00 1,268.00 3,276.00
2014-03-31 22,117.00 1,324.00 3,134.00
2013-12-31 23,483.00 1,704.00 3,379.00
2013-09-30 24,710.00 1,134.00 3,462.00
2013-06-30 25,761.00 970.00 3,483.00
2013-03-31 28,268.00 858.00 3,699.00
2012-12-31 21,852.00 717.00 2,980.00
2012-09-30 27,125.00 805.00 3,354.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst International Paper has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • International Paper used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.
  • International Paper's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess International Paper's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
International Paper has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is International Paper's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up International Paper's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • International Paper is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • International Paper's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of International Paper's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from International Paper Company Filings, last reported 3 months ago.

NYSE:IP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 7,469.00 10,675.00 641.00
2018-12-31 7,383.00 10,654.00 589.00
2018-09-30 7,058.00 11,255.00 1,026.00
2018-06-30 6,864.00 11,489.00 1,073.00
2018-03-31 7,265.00 11,346.00 1,141.00
2017-12-31 6,541.00 11,157.00 1,018.00
2017-09-30 4,933.00 12,331.00 998.00
2017-06-30 4,565.00 11,216.00 1,041.00
2017-03-31 4,594.00 11,277.00 998.00
2016-12-31 4,359.00 11,314.00 1,033.00
2016-09-30 4,229.00 10,901.00 2,562.00
2016-06-30 4,046.00 9,463.00 1,254.00
2016-03-31 4,260.00 9,375.00 1,155.00
2015-12-31 3,909.00 9,270.00 1,050.00
2015-09-30 4,470.00 9,640.00 5,949.00
2015-06-30 5,028.00 9,926.00 1,590.00
2015-03-31 5,003.00 9,125.00 1,576.00
2014-12-31 5,263.00 9,373.00 1,881.00
2014-09-30 6,977.00 9,713.00 1,718.00
2014-06-30 7,691.00 9,949.00 1,293.00
2014-03-31 7,914.00 9,429.00 1,341.00
2013-12-31 8,447.00 9,489.00 1,802.00
2013-09-30 7,542.00 9,683.00 1,946.00
2013-06-30 7,025.00 10,125.00 1,205.00
2013-03-31 7,134.00 10,222.00 934.00
2012-12-31 6,636.00 10,141.00 1,302.00
2012-09-30 7,345.00 10,463.00 1,275.00
  • International Paper's level of debt (144.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (119.3% vs 144.2% today).
  • Debt is well covered by operating cash flow (30.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess International Paper's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. International Paper has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is International Paper's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.63%
Current annual income from International Paper dividends. Estimated to be 4.75% next year.
If you bought $2,000 of International Paper shares you are expected to receive $93 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • International Paper's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • International Paper's dividend is above the markets top 25% of dividend payers in United States of America (3.78%).
Upcoming dividend payment

Purchase International Paper before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:IP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Packaging Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:IP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.12 4.00
2020-12-31 2.07 10.00
2019-12-31 2.01 10.00
NYSE:IP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-09 2.000 4.685
2019-01-08 2.000 4.423
2018-10-09 2.000 4.592
2018-07-10 1.900 3.663
2018-05-08 1.900 3.488
2018-01-09 1.900 3.380
2017-10-10 1.900 3.334
2017-07-11 1.850 3.327
2017-05-09 1.850 3.397
2017-01-10 1.850 3.519
2016-10-11 1.850 3.760
2016-07-12 1.760 3.749
2016-05-10 1.760 4.179
2016-01-12 1.760 4.609
2015-10-13 1.760 4.387
2015-07-14 1.600 3.675
2015-05-12 1.600 3.175
2015-01-13 1.600 2.933
2014-09-09 1.600 3.132
2014-07-08 1.400 2.891
2014-01-14 1.400 2.964
2013-09-10 1.400 3.019
2013-07-09 1.200 2.507
2013-05-14 1.200 2.618
2013-01-08 1.200 2.705
2012-10-09 1.200 3.244
2012-07-09 1.050 3.107
2012-05-08 1.050 3.583
2012-01-10 1.050 3.150
2011-10-11 1.050 3.772
2011-07-12 1.050 3.968
2011-03-29 1.050 3.507
2011-01-11 0.750 2.683
2010-10-12 0.500 1.950
2010-07-13 0.500 2.227
2010-04-26 0.500 2.097
2010-01-12 0.100 0.397
2009-10-13 0.100 0.396
2009-07-14 0.100 0.485
2009-03-02 0.100 1.029
2009-01-13 1.000 12.704
2008-10-14 1.000 7.610

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of International Paper's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess International Paper's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can International Paper afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. International Paper has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of International Paper's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Sutton
COMPENSATION $21,911,137
AGE 57
TENURE AS CEO 4.7 years
CEO Bio

Mr. Mark Stephan Sutton has been the Chief Executive Officer of International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman since January 1, 2015. Mr. Sutton served as the President and Chief Operating Officer of International Paper Company from June 1, 2014 to October 31, 2014. He served as President and Chief Operating Officer of International Paper Italia S.r.l. since June 01, 2014. Mr. Sutton served as a Senior Vice President of Industrial Packaging at International Paper Company from November 2011 to May 31, 2014. He served as a Senior Vice President of Printing & Communications Papers of the Americas at International Paper Company from January 2010 to October 2011. He served as Senior Vice President of Supply Chain at International Paper Company from 2008 to 2009. Mr. Sutton served as the Vice President of Supply Chain at International Paper Company from June 2007 to 2008. He served for International Paper as Vice President of Corporate Strategic Planning, Vice President and General Manager of European Corrugated Packaging Operations, General Manager of Pressure Sensitive Products, Sales and Marketing Manager for Industrial Papers and manager of its Thilmany Mill. He has been Chairman of International Paper Italia S.r.l. since January 01, 2015 and serves as its Director. He serves as the Chairman of International Paper do Brasil Ltda. He has been the Chairman of International Paper Company since January 1, 2015 and has been its Director since June 1, 2014. He has been Independent Director of The Kroger Co. since January 12, 2017. He joined International Paper in 1984 as an Engineer at its Pineville, La., mill. Mr. Sutton served as Vice Chairman of Olmuksan International Paper Ambalaj Sanayi ve Ticaret Anonim Sirketi. (Olmuksa International Paper Sabanci Ambalaj Sanayi ve Ticaret AS) until June 14, 2005 and also served as its Director. Mr. Sutton is a member of The Business Council and the Business Roundtable. He serves on the boards of the American Forest & Paper Association and the International Advisory Board of the Moscow School of Management – Skolkovo. He also serves on the boards of Memphis Tomorrow and the New Memphis Institute. Mr. Sutton holds a Bachelor of Science degree in electrical engineering from the Louisiana State University.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the International Paper management team in years:

4.7
Average Tenure
56.5
Average Age
  • The tenure for the International Paper management team is about average.
Management Team

Mark Sutton

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
57
TENURE
4.7 yrs

Tim Nicholls

TITLE
Senior VP & CFO
COMPENSATION
$5M
AGE
57
TENURE
1.1 yrs

Sharon Ryan

TITLE
Senior VP
COMPENSATION
$4M
AGE
60
TENURE
7.7 yrs

Jean-Michel Ribiéras

TITLE
Senior Vice President of Industrial Packaging the Americas
COMPENSATION
$3M
AGE
56
TENURE
6.1 yrs

Catherine Slater

TITLE
Senior Vice President of Global Cellulose Fibers & IP Asia
COMPENSATION
$4M
AGE
55
TENURE
2.6 yrs

Tommy Joseph

TITLE
Senior Vice President of Manufacturing
COMPENSATION
$4M
AGE
59
TENURE
9.5 yrs

Bob Wenker

TITLE
Chief Information Officer & VP

Guillermo Gutierrez

TITLE
Vice President of Investor Relations
AGE
47
TENURE
2 yrs

Tom Plath

TITLE
Senior Vice President of Human Resources & Global Citizenship
TENURE
2.3 yrs

Mike Amick

TITLE
Senior Vice President of Paper The Americas & India
COMPENSATION
$4M
AGE
55
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the International Paper board of directors in years:

3.5
Average Tenure
62
Average Age
  • The tenure for the International Paper board of directors is about average.
Board of Directors

Mark Sutton

TITLE
Chairman & CEO
COMPENSATION
$22M
AGE
57
TENURE
4.5 yrs

Steve Whisler

TITLE
Director
COMPENSATION
$317K
AGE
64
TENURE
11.6 yrs

Ilene Gordon

TITLE
Independent Presiding Director
COMPENSATION
$325K
AGE
65
TENURE
1.5 yrs

Ray Young

TITLE
Independent Director
COMPENSATION
$322K
AGE
57
TENURE
4.8 yrs

Chris Connor

TITLE
Director
COMPENSATION
$307K
AGE
62
TENURE
1.8 yrs

Ahmet Dördüncü

TITLE
Independent Director
COMPENSATION
$286K
AGE
66
TENURE
8.3 yrs

Bill Burns

TITLE
Independent Director
COMPENSATION
$297K
AGE
62
TENURE
4.4 yrs

Kathryn Sullivan

TITLE
Director
COMPENSATION
$286K
AGE
67
TENURE
2.3 yrs

Jacque Hinman

TITLE
Independent Director
COMPENSATION
$296K
AGE
58
TENURE
2.5 yrs

Clinton Lewis

TITLE
Independent Director
COMPENSATION
$297K
AGE
52
TENURE
1.7 yrs
Who owns this company?
Recent Insider Trading
  • International Paper individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. May 19 Sell Thomas Plath Individual 17. May 19 17. May 19 -1,000 $45.17 $-45,166
01. May 19 Sell Jean-Michel Ribiéras Individual 30. Apr 19 30. Apr 19 -5,000 $46.85 $-234,273
01. Mar 19 Sell John Sims Individual 01. Mar 19 01. Mar 19 -12,667 $45.96 $-582,225
27. Feb 19 Sell William Amick Individual 26. Feb 19 26. Feb 19 -9,093 $47.65 $-433,291
25. Feb 19 Sell Gregory Wanta Individual 25. Feb 19 25. Feb 19 -9,000 $47.72 $-429,449
20. Feb 19 Sell Jean-Michel Ribiéras Individual 20. Feb 19 20. Feb 19 -10,000 $47.15 $-471,527
14. Feb 19 Sell Timothy Nicholls Individual 14. Feb 19 14. Feb 19 -45,000 $46.67 $-2,100,281
20. Sep 18 Sell John Sims Individual 19. Sep 18 19. Sep 18 -4,725 $54.35 $-256,821
20. Sep 18 Sell Jean-Michel Ribiéras Individual 19. Sep 18 19. Sep 18 -10,000 $54.20 $-542,049
28. Aug 18 Sell Timothy Nicholls Individual 28. Aug 18 28. Aug 18 -17,000 $52.53 $-893,088
07. Aug 18 Sell Sharon Ryan Individual 06. Aug 18 06. Aug 18 -15,000 $52.87 $-793,100
X
Management checks
We assess International Paper's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. International Paper has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does International Paper Company's (NYSE:IP) CEO Salary Reflect Performance?

At the time of writing our data says that International Paper Company has a market cap of US$18b, and is paying total annual CEO compensation of US$22m. … It would therefore appear that International Paper Company pays Mark Sutton more than the median CEO remuneration at large companies, in the same market. … We compared the total CEO remuneration paid by International Paper Company, and compared it to remuneration at a group of other large companies.

Simply Wall St -

An Intrinsic Calculation For International Paper Company (NYSE:IP) Suggests It's 30% Undervalued

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $2.07k $1.85k $1.87k $1.88k $1.91k $1.95k $1.99k $2.04k $2.09k $2.14k Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x1 Est @ 1% Est @ 1.52% Est @ 1.88% Est @ 2.14% Est @ 2.31% Est @ 2.44% Est @ 2.53% Present Value ($, Millions) Discounted @ 9.92% $1.88k $1.53k $1.40k $1.29k $1.19k $1.10k $1.03k $955.40 $890.39 $830.51 Present Value of 10-year Cash Flow (PVCF)= $12.10b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$2.1b × (1 + 2.7%) ÷ (9.9% – 2.7%) = US$31b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$31b ÷ ( 1 + 9.9%)10 = $11.87b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $23.97b. … NYSE:IP Intrinsic value, May 30th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

If You Had Bought International Paper (NYSE:IP) Stock A Year Ago, You'd Be Sitting On A 19% Loss, Today

For example, the International Paper Company (NYSE:IP) share price is down 19% in the last year. … See our latest analysis for International Paper In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Unfortunately International Paper reported an EPS drop of 23% for the last year.

Simply Wall St -

International Paper Company (NYSE:IP) Has Got What It Takes To Be An Attractive Dividend Stock

Is International Paper Company (NYSE:IP) a good dividend stock? … A dividend paying company with growing earnings can be rewarding in the long term. … The company also bought back stock equivalent to around 4.9% of market capitalisation this year.

Simply Wall St -

Is International Paper Company (NYSE:IP) Investing Your Capital Efficiently?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Have Insiders Been Selling International Paper Company (NYSE:IP) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in International Paper Company (NYSE:IP). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At International Paper.

Simply Wall St -

Do You Know What International Paper Company's (NYSE:IP) P/E Ratio Means?

We'll show how you can use International Paper Company's (NYSE:IP) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, International Paper's P/E ratio is 11.61. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

International Paper Company (NYSE:IP) Is A Real Dividend Rock Star - Here Is Why

Over the past 10 years International Paper Company (NYSE:IP) has grown its dividend payouts from $0.10 to $2. … With a market cap of US$18b, International Paper pays out 47% of its earnings, leading to a 4.5% yield. … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come

Simply Wall St -

What Kind Of Shareholder Owns Most International Paper Company (NYSE:IP) Stock?

If you want to know who really controls International Paper Company (NYSE:IP), then you'll have to look at the makeup of its share registry. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … International Paper is a pretty big company.

Simply Wall St -

International Paper Company (NYSE:IP): Time For A Financial Health Check

Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as International Paper Company (NYSE:IP) a safer option. … Today we will look at International Paper’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Company Info

Description

International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia. 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. The Global Cellulose Fibers segment provides fluff, market, and specialty pulps that are used in absorbent hygiene products, tissue and paper products, and non-absorbent end applications. The Printing Papers segment produces printing and writing papers, such as uncoated papers for end-use applications comprising brochures, pamphlets, greeting cards, books, annual reports, and direct mail, as well as envelopes, tablets, business forms, and file folders. It sells its uncoated papers under the Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol, and Svetocopy brands. The company sells its products directly to end users and converters, as well as through agents, resellers, and paper distributors. International Paper Company was founded in 1898 and is headquartered in Memphis, Tennessee.

Details
Name: International Paper Company
IP
Exchange: NYSE
Founded: 1898
$17,180,721,122
397,333,976
Website: http://www.internationalpaper.com
Address: International Paper Company
6400 Poplar Avenue,
Memphis,
Tennessee, 38197,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE IP Common Stock New York Stock Exchange US USD 02. Jan 1968
DB INP Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
XTRA INP Common Stock XETRA Trading Platform DE EUR 02. Jan 1968
BMV IP * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
53,000
International Paper employees.
Industry
Paper Packaging
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 01:53
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.