NYSE:IP

Stock Analysis Report

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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


Snowflake Analysis

Good value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.5%

IP

-5.6%

US Packaging

-4.6%

US Market


1 Year Return

0.8%

IP

5.8%

US Packaging

11.5%

US Market

Return vs Industry: IP underperformed the US Packaging industry which returned 5.8% over the past year.

Return vs Market: IP underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

IPIndustryMarket
7 Day-7.5%-5.6%-4.6%
30 Day4.4%4.6%-0.9%
90 Day20.2%12.8%2.2%
1 Year6.3%0.8%8.2%5.8%14.0%11.5%
3 Year-14.9%-25.5%14.1%6.1%34.5%25.6%
5 Year25.3%1.2%61.9%41.7%73.0%53.6%

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

Valuation

Is International Paper undervalued compared to its fair value and its price relative to the market?

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IP ($43) is trading below our estimate of fair value ($64.29)

Significantly Below Fair Value: IP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IP is poor value based on its PE Ratio (26.6x) compared to the US Packaging industry average (20x).

PE vs Market: IP is poor value based on its PE Ratio (26.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: IP is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: IP is good value based on its PB Ratio (2.4x) compared to the US Packaging industry average (2.7x).


Next Steps

Future Growth

How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

46.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IP's forecast earnings growth (46.3% per year) is above the savings rate (2.2%).

Earnings vs Market: IP's earnings (46.3% 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 (2.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: IP's revenue (2.5% 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 (16.4%).


Next Steps

Past Performance

How has International Paper performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IP has a large one-off loss of $494.0M impacting its June 30 2020 financial results.

Growing Profit Margin: IP's current net profit margins (3%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: IP's earnings have grown by 9.8% 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 (-60.2%) over the past year, making it difficult to compare to the Packaging industry average (-9.2%).


Return on Equity

High ROE: IP's Return on Equity (9%) 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 ($6.6B) do not cover its short term liabilities ($8.3B).

Long Term Liabilities: IP's short term assets ($6.6B) do not cover its long term liabilities ($17.1B).


Debt to Equity History and Analysis

Debt Level: IP's debt to equity ratio (132.7%) is considered high.

Reducing Debt: IP's debt to equity ratio has reduced from 197.8% to 132.7% over the past 5 years.

Debt Coverage: IP's debt is well covered by operating cash flow (35.7%).

Interest Coverage: IP's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.77%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IP's dividend (4.77%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: IP's dividend (4.77%) is low compared to the top 25% of dividend payers in the US market (4.86%).


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 (126.2%), 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 (65.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Mark Sutton (58 yo)

5.92yrs

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 ($USD15.92M) is above average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Sutton
Chairman & CEO5.92yrsUS$15.92m0.13%
$ 21.2m
Timothy Nicholls
Senior VP & CFO2.33yrsUS$4.87m0.023%
$ 3.9m
Sharon Ryan
Senior VP8.92yrsUS$4.11m0.023%
$ 3.9m
Jean-Michel Ribiéras
Senior Vice President of Industrial Packaging the Americas7.33yrsUS$4.66m0.015%
$ 2.6m
Catherine Slater
Senior Vice President3.83yrsUS$3.52m0.0075%
$ 1.3m
Vincent Bonnot
VP of Financeno datano data0.0032%
$ 535.8k
Robert Wenker
Chief Information Officer & VPno datano datano data
Guillermo Gutierrez
Vice President of Investor Relations3.25yrsno datano data
John Sims
Senior Vice President of Corporate Development0.83yrno data0.0096%
$ 1.6m
Thomas Plath
Senior Vice President of Human Resources & Global Citizenship3.58yrsno data0.011%
$ 1.9m
James Royalty
Senior Vice President & President of IP Europe0.83yrno data0.0043%
$ 720.1k
William Amick
Senior Vice President of Paper The Americas & India5.92yrsUS$4.23m0.0069%
$ 1.2m

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: IP's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Sutton
Chairman & CEO5.92yrsUS$15.92m0.13%
$ 21.2m
J. Whisler
Independent Director12.83yrsUS$297.41k0.00025%
$ 42.3k
Christopher Connor
Independent Director3yrsUS$327.40kno data
Ilene Gordon
Independent Presiding Director2.75yrsUS$344.89k0.015%
$ 2.6m
Kathryn Sullivan
Independent Director3.58yrsUS$304.54k0.0056%
$ 939.8k
Anders Gustafsson
Independent Director1.58yrsUS$307.41k0.0042%
$ 716.7k
Ahmet Dorduncu
Independent Director9.58yrsUS$285.02k0.0071%
$ 1.2m
Ray Young
Independent Director6yrsUS$322.43k0.0018%
$ 300.9k
Jacqueline C. Hinman
Independent Director3.75yrsUS$296.23k0.0055%
$ 936.4k
Clinton Lewis
Independent Director2.92yrsUS$297.41kno data
William Burns
Independent Director5.67yrsUS$297.41k0.0012%
$ 204.5k

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: Insufficient data to determine if insiders have bought more shares than they have sold 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$16.903b
  • Shares outstanding: 393.09m
  • Website: https://www.internationalpaper.com

Number of Employees


Location

  • International Paper Company
  • 6400 Poplar Avenue
  • Memphis
  • Tennessee
  • 38197
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
INPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
IP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0JCBLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
INPXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
I1PC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:32
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.