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Market Cap

US$24.1b

Last Updated

2021/05/10 22:06 UTC

Data Sources

Company Financials +

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 rest of the Americas. More Details


Snowflake Analysis

Established dividend payer and good value.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IP's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

IP

2.3%

US Packaging

-1.2%

US Market


1 Year Return

87.7%

IP

67.6%

US Packaging

48.3%

US Market

Return vs Industry: IP exceeded the US Packaging industry which returned 65.4% over the past year.

Return vs Market: IP exceeded the US Market which returned 49.9% over the past year.


Shareholder returns

IPIndustryMarket
7 Day5.3%2.3%-1.2%
30 Day13.0%8.0%0.2%
90 Day29.1%16.9%1.6%
1 Year97.6%87.7%71.0%67.6%50.8%48.3%
3 Year31.5%14.5%62.7%51.1%62.0%51.9%
5 Year81.8%47.1%113.5%91.4%126.9%101.7%

Long-Term 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?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IP ($62.08) is trading below our estimate of fair value ($118.82)

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 (25.1x) compared to the US Packaging industry average (26.8x).

PE vs Market: IP is poor value based on its PE Ratio (25.1x) compared to the US market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: IP is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: IP is good value based on its PB Ratio (3.1x) compared to the US Packaging industry average (3.6x).


Future Growth

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

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IP's forecast earnings growth (13.2% per year) is above the savings rate (2%).

Earnings vs Market: IP's earnings (13.2% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: IP's earnings are forecast to grow, but not significantly.

Revenue vs Market: IP's revenue (1.7% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: IP's revenue (1.7% 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 (22.3%)


Past Performance

How has International Paper performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IP has high quality earnings.

Growing Profit Margin: IP's current net profit margins (4.7%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: IP's earnings have declined by 2.2% per year over the past 5 years.

Accelerating Growth: IP's earnings growth over the past year (47.3%) exceeds its 5-year average (-2.2% per year).

Earnings vs Industry: IP earnings growth over the past year (47.3%) exceeded the Packaging industry 9.3%.


Return on Equity

High ROE: IP's Return on Equity (12.5%) 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 ($8.4B).

Long Term Liabilities: IP's short term assets ($12.2B) do not cover its long term liabilities ($15.3B).


Debt to Equity History and Analysis

Debt Level: IP's debt to equity ratio (101.6%) is considered high.

Reducing Debt: IP's debt to equity ratio has reduced from 220.2% to 101.6% over the past 5 years.

Debt Coverage: IP's debt is well covered by operating cash flow (37.1%).

Interest Coverage: IP's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IP's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.23%).

High Dividend: IP's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.4%).


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: At its current payout ratio (82.9%), IP's 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 (42.5% 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 (58 yo)

6.5yrs

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 ($USD18.32M) is above average for companies of similar size in the US market ($USD11.15M).

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 only sold shares 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$24.147b
  • Shares outstanding: 391.74m
  • Website: https://www.internationalpaper.com

Number of Employees


Location

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

Listings


Biography

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 seg...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 22:06
End of Day Share Price2021/05/10 00:00
Earnings2021/03/31
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.