INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
NYSE:IP - New York Stock Exchange, Inc. - US4601461035 - Common Stock - Currency: USD
IP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of IP have multiple concerns. While showing a medium growth rate, IP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
IP had positive earnings in the past year.
In the past year IP had a positive cash flow from operations.
Each year in the past 5 years IP has been profitable.
IP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.96%, IP is doing worse than 72.73% of the companies in the same industry.
IP has a Return On Equity of 2.19%. This is in the lower half of the industry: IP underperforms 72.73% of its industry peers.
IP has a Return On Invested Capital of 0.78%. This is in the lower half of the industry: IP underperforms 77.27% of its industry peers.
IP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 2.19% | ||
| ROIC | 0.78% |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)4.45%
ROIC(5y)4.83%
1.3 Margins
IP has a Profit Margin (1.99%) which is in line with its industry peers.
IP's Profit Margin has declined in the last couple of years.
The Operating Margin of IP (1.58%) is worse than 77.27% of its industry peers.
In the last couple of years the Operating Margin of IP has declined.
IP's Gross Margin of 28.59% is fine compared to the rest of the industry. IP outperforms 77.27% of its industry peers.
In the last couple of years the Gross Margin of IP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.58% | ||
| PM (TTM) | 1.99% | ||
| GM | 28.59% |
OM growth 3Y-30.36%
OM growth 5Y-25.08%
PM growth 3Y-30.85%
PM growth 5Y-11.38%
GM growth 3Y-0.48%
GM growth 5Y-2.38%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IP is destroying value.
IP has more shares outstanding than it did 1 year ago.
IP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IP has a worse debt to assets ratio.
2.2 Solvency
IP has an Altman-Z score of 1.53. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.53, IP is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.51 indicates that IP is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.51, IP belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.09
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.33 indicates that IP should not have too much problems paying its short term obligations.
IP has a better Current ratio (1.33) than 63.64% of its industry peers.
A Quick Ratio of 0.96 indicates that IP may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.96, IP is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for IP have decreased strongly by -33.70% in the last year.
IP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.81% yearly.
IP shows a small growth in Revenue. In the last year, the Revenue has grown by 7.49%.
Measured over the past years, IP shows a decrease in Revenue. The Revenue has been decreasing by -3.61% on average per year.
EPS 1Y (TTM)-33.7%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%35.29%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%27.75%
3.2 Future
IP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.29% yearly.
Based on estimates for the next years, IP will show a quite strong growth in Revenue. The Revenue will grow by 10.64% on average per year.
EPS Next Y95.11%
EPS Next 2Y73.81%
EPS Next 3Y56.17%
EPS Next 5Y30.29%
Revenue Next Year39.61%
Revenue Next 2Y21.19%
Revenue Next 3Y14.2%
Revenue Next 5Y10.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.17 indicates a quite expensive valuation of IP.
IP's Price/Earnings ratio is rather expensive when compared to the industry. IP is more expensive than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. IP is valued rather expensively when compared to this.
IP is valuated correctly with a Price/Forward Earnings ratio of 14.35.
IP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IP to the average of the S&P500 Index (21.60), we can say IP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.17 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IP indicates a rather expensive valuation: IP more expensive than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.36 |
4.3 Compensation for Growth
IP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
IP's earnings are expected to grow with 56.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y73.81%
EPS Next 3Y56.17%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 3.98%.
Compared to an average industry Dividend Yield of 3.06, IP pays a better dividend. On top of this IP pays more dividend than 86.36% of the companies listed in the same industry.
IP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of IP decreases each year by -1.58%.
IP has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of IP decreased in the last 3 years.
Dividend Growth(5Y)-1.58%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
IP pays out 183.33% of its income as dividend. This is not a sustainable payout ratio.
DP183.33%
EPS Next 2Y73.81%
EPS Next 3Y56.17%
NYSE:IP (7/1/2025, 3:16:02 PM)
49.4083
+2.58 (+5.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners94.24%
Inst Owner Change22.66%
Ins Owners0.16%
Ins Owner Change4.9%
Market Cap26.08B
Analysts75.24
Price Target56.21 (13.77%)
Short Float %8.07%
Short Ratio10.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP183.33%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-110.33%
Min EPS beat(2)-180.91%
Max EPS beat(2)-39.75%
EPS beat(4)2
Avg EPS beat(4)-31.48%
Min EPS beat(4)-180.91%
Max EPS beat(4)65.36%
EPS beat(8)5
Avg EPS beat(8)-9.58%
EPS beat(12)8
Avg EPS beat(12)-3.98%
EPS beat(16)9
Avg EPS beat(16)-2%
Revenue beat(2)0
Avg Revenue beat(2)-7.06%
Min Revenue beat(2)-7.84%
Max Revenue beat(2)-6.28%
Revenue beat(4)0
Avg Revenue beat(4)-5.27%
Min Revenue beat(4)-7.84%
Max Revenue beat(4)-3.16%
Revenue beat(8)0
Avg Revenue beat(8)-5.12%
Revenue beat(12)0
Avg Revenue beat(12)-4.27%
Revenue beat(16)1
Avg Revenue beat(16)-5.56%
PT rev (1m)-1%
PT rev (3m)-5.24%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-43.14%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)-18.57%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.17 | ||
| Fwd PE | 14.35 | ||
| P/S | 1.31 | ||
| P/FCF | N/A | ||
| P/OCF | 26.27 | ||
| P/B | 1.44 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 17.36 |
EPS(TTM)1.2
EY2.43%
EPS(NY)3.44
Fwd EY6.97%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)1.88
OCFY3.81%
SpS37.7
BVpS34.27
TBVpS11.87
PEG (NY)0.43
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 2.19% | ||
| ROCE | 0.92% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.8% | ||
| ROICexgc | 1.25% | ||
| OM | 1.58% | ||
| PM (TTM) | 1.99% | ||
| GM | 28.59% | ||
| FCFM | N/A |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)4.45%
ROIC(5y)4.83%
ROICexc(3y)4.69%
ROICexc(5y)5.36%
ROICexgc(3y)5.71%
ROICexgc(5y)6.5%
ROCE(3y)5.27%
ROCE(5y)5.71%
ROICexcg growth 3Y-27.83%
ROICexcg growth 5Y-21.92%
ROICexc growth 3Y-28.5%
ROICexc growth 5Y-22.76%
OM growth 3Y-30.36%
OM growth 5Y-25.08%
PM growth 3Y-30.85%
PM growth 5Y-11.38%
GM growth 3Y-0.48%
GM growth 5Y-2.38%
F-Score7
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.8 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 5.02% | ||
| Interest Coverage | 0.72 | ||
| Cash Conversion | 51.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.53 |
F-Score7
WACC8.8%
ROIC/WACC0.09
Cap/Depr(3y)79.92%
Cap/Depr(5y)68.7%
Cap/Sales(3y)5.13%
Cap/Sales(5y)4.5%
Profit Quality(3y)152.94%
Profit Quality(5y)204.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-33.7%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%35.29%
EPS Next Y95.11%
EPS Next 2Y73.81%
EPS Next 3Y56.17%
EPS Next 5Y30.29%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%27.75%
Revenue Next Year39.61%
Revenue Next 2Y21.19%
Revenue Next 3Y14.2%
Revenue Next 5Y10.64%
EBIT growth 1Y-47.23%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year379.33%
EBIT Next 3Y87.32%
EBIT Next 5Y47.2%
FCF growth 1Y-100.83%
FCF growth 3Y-20.04%
FCF growth 5Y-20.16%
OCF growth 1Y-48.58%
OCF growth 3Y-6.15%
OCF growth 5Y-14.21%