International Paper
Market Cap
US$18.1b
Last Updated
2019/12/11 23:37 UTC
Data Sources
Company Financials +
Executive Summary
International Paper Company operates as a paper and packaging company primarily in North America, Europe, Latin America, North Africa, India, and Russia.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.5% per year for the next 3 years
Snowflake Analysis
6 star 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.5%
IP
-0.4%
US Packaging
0.8%
US Market
1 Year Return
4.3%
IP
17.4%
US Packaging
17.8%
US Market
Return vs Industry: IP underperformed the US Packaging industry which returned 17.4% over the past year.
Return vs Market: IP underperformed the US Market which returned 17.8% over the past year.
Shareholder returns
| IP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.4% | 0.8% |
| 30 Day | 0.5% | 0.2% | 1.8% |
| 90 Day | 9.1% | 3.0% | 4.1% |
| 1 Year | 9.2%4.3% | 20.4%17.4% | 20.4%17.8% |
| 3 Year | -1.8%-12.7% | 26.3%17.8% | 45.9%36.4% |
| 5 Year | 5.0%-13.6% | 44.2%25.8% | 68.1%49.6% |
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
1 week ago | Simply Wall St
Is It Too Late To Consider Buying International Paper Company (NYSE:IP)?2 weeks ago | Simply Wall St
Have Insiders Sold International Paper Company (NYSE:IP) Shares Recently?3 weeks ago | Simply Wall St
Do Institutions Own Shares In International Paper Company (NYSE:IP)?Valuation
Is International Paper undervalued compared to its fair value and its price relative to the market?
16.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IP ($46.18) is trading below our estimate of fair value ($55.41)
Significantly Below Fair Value: IP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: IP is good value based on its PE Ratio (13.3x) compared to the Packaging industry average (18.7x).
PE vs Market: IP is good value based on its PE Ratio (13.3x) compared to the US market (18.4x).
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 (2.4x) compared to the US Packaging industry average (3.5x).
Next Steps
Future Growth
How is International Paper forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
-0.5%
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 (-0.5% per year).
Earnings vs Market: IP's earnings are forecast to decline over the next 3 years (-0.5% 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 (-1.1% per year).
High Growth Revenue: IP's revenue is forecast to decline over the next 3 years (-1.1% 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 (17.7%).
Next Steps
Past Performance
How has International Paper performed over the past 5 years?
20.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IP has high quality earnings.
Growing Profit Margin: IP's current net profit margins (6%) are lower than last year (12.2%).
Past Earnings Growth Analysis
Earnings Trend: IP's earnings have grown significantly by 20.3% 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 (-51.2%) over the past year, making it difficult to compare to the Packaging industry average (-18.5%).
Return on Equity
High ROE: IP's Return on Equity (18.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is International Paper's financial position?
Financial Position Analysis
Short Term Liabilities: IP's short term assets ($7.1B) exceed its short term liabilities ($4.7B).
Long Term Liabilities: IP's short term assets ($7.1B) do not cover its long term liabilities ($21.7B).
Debt to Equity History and Analysis
Debt Level: IP's debt to equity ratio (137.5%) is considered high.
Reducing Debt: IP's debt to equity ratio has reduced from 139.5% to 137.5% over the past 5 years.
Debt Coverage: IP's debt is well covered by operating cash flow (34.2%).
Interest Coverage: IP's interest payments on its debt are well covered by EBIT (4.5x coverage).
Balance Sheet
Inventory Level: IP has a high level of physical assets or inventory.
Debt Coverage by Assets: IP's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is International Paper's current dividend yield, its reliability and sustainability?
4.44%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: IP's dividend (4.44%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: IP's dividend (4.44%) is in the top 25% of dividend payers in the US market (3.72%)
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 reasonable payout ratio (57.8%), IP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IP's dividends in 3 years are forecast to be covered by earnings (55.7% payout ratio).
Next Steps
Management
What is the CEO of International Paper's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Mark Sutton (57yo)
5.1yrs
Tenure
US$21,911,137
Compensation
Mr. Mark Stephan Sutton has been the Chief Executive Officer of International Paper Company, International Paper do Brasil Ltda., and International Paper Italia S.r.l. since November 1, 2014 and Chairman s ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD21.91M) is above average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.8yrs
Average Tenure
56.5yo
Average Age
Experienced Management: IP's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
3.9yrs
Average Tenure
62yo
Average Age
Experienced Board: IP's board of directors are considered experienced (3.9 years average tenure).
Insider Trading
Insider Buying: IP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 8,000 |
| Max Price | US$44.83 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 45,000 |
| Max Price | US$42.44 |
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 22,507 |
| Max Price | US$44.97 |
| Entity | Individual |
| Role | Head of Human Resources Senior Vice President of Human Resources & Global Citizenship |
| Shares | 1,000 |
| Max Price | US$45.17 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Industrial Packaging the Americas |
| Shares | 5,000 |
| Max Price | US$46.85 |
| Entity | Individual |
| Role | Head of Corporate Development Senior Vice President of Corporate Development |
| Shares | 12,667 |
| Max Price | US$45.96 |
| Entity | Individual |
| Shares | 9,093 |
| Max Price | US$47.65 |
| Entity | Individual |
| Shares | 9,000 |
| Max Price | US$47.72 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Industrial Packaging the Americas |
| Shares | 10,000 |
| Max Price | US$47.15 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 45,000 |
| Max Price | US$46.67 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Catherine Slater (55yo)
Senior Vice President of Global Cellulose Fibers & IP Asia
- Tenure: 3yrs
- Compensation: US$4.08m
Mark Sutton (57yo)
Chairman & CEO
- Tenure: 5.1yrs
- Compensation: US$21.91m
Sharon Ryan (60yo)
Senior VP
- Tenure: 8.1yrs
- Compensation: US$3.69m
Tim Nicholls (57yo)
Senior VP & CFO
- Tenure: 1.5yrs
- Compensation: US$5.19m
Tommy Joseph (59yo)
Senior Vice President
- Tenure: 0.9yrs
- Compensation: US$4.11m
Jean-Michel Ribiéras (56yo)
Senior Vice President of Industrial Packaging the Americas
- Tenure: 6.5yrs
- Compensation: US$3.33m
Bob Wenker
Chief Information Officer & VP
- Tenure: 0yrs
John Sims (56yo)
Senior Vice President of Corporate Development
- Tenure: 0.9yrs
Tom Plath
Senior Vice President of Human Resources & Global Citizenship
- Tenure: 2.8yrs
Guillermo Gutierrez (47yo)
Vice President of Investor Relations
- Tenure: 2.4yrs
Board Members
Steve Whisler (64yo)
Independent Director
- Tenure: 12yrs
- Compensation: US$317.37k
Chris Connor (62yo)
Independent Director
- Tenure: 2.2yrs
- Compensation: US$307.40k
Ilene Gordon (65yo)
Independent Presiding Director
- Tenure: 1.9yrs
- Compensation: US$324.88k
Kathryn Sullivan (67yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$286.21k
Ahmet Dördüncü (66yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$286.26k
Ray Young (57yo)
Independent Director
- Tenure: 5.2yrs
- Compensation: US$322.38k
Mark Sutton (57yo)
Chairman & CEO
- Tenure: 5.1yrs
- Compensation: US$21.91m
Jacque Hinman (58yo)
Independent Director
- Tenure: 2.9yrs
- Compensation: US$296.22k
Clinton Lewis (52yo)
Independent Director
- Tenure: 2.1yrs
- Compensation: US$297.38k
Bill Burns (62yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$297.38k
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$18.135b
- Shares outstanding: 392.12m
- Website: https://www.internationalpaper.com
Number of Employees
Location
- International Paper Company
- 6400 Poplar Avenue
- Memphis
- Tennessee
- 38197
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IP | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| INP | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| IP * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0JCB | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| INP | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| INP | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
Biography
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 Pack ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/11 23:37 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.