INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - NYSE:IP - US4601461035 - Common Stock
46.08 USD
+0.76 (+1.68%)
46.08 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to IP. IP was compared to 22 industry peers in the Containers & Packaging industry. IP may be in some trouble as it scores bad on both profitability and health. IP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years IP has always been profitable.
In the past 5 years IP always reported a positive cash flow from operatings.
1.2 Ratios
IP's Return On Assets of -0.06% is on the low side compared to the rest of the industry. IP is outperformed by 68.18% of its industry peers.
IP has a Return On Equity of -0.15%. This is in the lower half of the industry: IP underperforms 68.18% of its industry peers.
IP has a Return On Invested Capital of 0.66%. This is in the lower half of the industry: IP underperforms 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IP is below the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.15% | ||
| ROIC | 0.66% |
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's Profit Margin has declined in the last couple of years.
IP has a worse Operating Margin (1.25%) than 77.27% of its industry peers.
IP's Operating Margin has declined in the last couple of years.
IP has a better Gross Margin (28.30%) than 77.27% of its industry peers.
IP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.3% |
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
IP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IP has been increased compared to 1 year ago.
IP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IP is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that IP is in the distress zone and has some risk of bankruptcy.
IP has a Altman-Z score (1.50) which is in line with its industry peers.
IP has a Debt/Equity ratio of 0.52. This is a neutral value indicating IP is somewhat dependend on debt financing.
IP's Debt to Equity ratio of 0.52 is amongst the best of the industry. IP outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.07
WACC9.38%
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 Current ratio (1.33) which is in line with its industry peers.
IP has a Quick Ratio of 1.33. This is a bad value and indicates that IP is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of IP (0.96) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.98%.
Measured over the past years, IP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.81% on average per year.
Looking at the last year, IP shows a quite strong growth in Revenue. The Revenue has grown by 18.13% in the last year.
IP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.61% yearly.
EPS 1Y (TTM)-51.98%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-63.64%
Revenue 1Y (TTM)18.13%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%42.94%
3.2 Future
The Earnings Per Share is expected to grow by 28.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
EPS Next Y57.34%
EPS Next 2Y66.11%
EPS Next 3Y52.81%
EPS Next 5Y28.45%
Revenue Next Year39.81%
Revenue Next 2Y20.65%
Revenue Next 3Y14.69%
Revenue Next 5Y9.1%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 54.21, which means the current valuation is very expensive for IP.
77.27% of the companies in the same industry are cheaper than IP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IP to the average of the S&P500 Index (27.67), we can say IP is valued expensively.
IP is valuated correctly with a Price/Forward Earnings ratio of 14.65.
IP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. IP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.21 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IP is valued a bit more expensive than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.64 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IP's earnings are expected to grow with 52.81% in the coming years.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y66.11%
EPS Next 3Y52.81%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 4.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.28, IP pays a better dividend. On top of this IP pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, IP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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.
IP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.58%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
IP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-3000%
EPS Next 2Y66.11%
EPS Next 3Y52.81%
46.08
+0.76 (+1.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-6.51%
Ins Owners0.15%
Ins Owner Change1.26%
Market Cap24.33B
Analysts74.55
Price Target55.67 (20.81%)
Short Float %9.48%
Short Ratio11.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP-3000%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-46.11%
Min EPS beat(2)-52.48%
Max EPS beat(2)-39.75%
EPS beat(4)1
Avg EPS beat(4)-51.94%
Min EPS beat(4)-180.91%
Max EPS beat(4)65.36%
EPS beat(8)4
Avg EPS beat(8)-22.61%
EPS beat(12)7
Avg EPS beat(12)-9.35%
EPS beat(16)9
Avg EPS beat(16)-5.11%
Revenue beat(2)0
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-7.84%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-4.83%
Min Revenue beat(4)-7.84%
Max Revenue beat(4)-2.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.48%
Revenue beat(12)0
Avg Revenue beat(12)-4.25%
Revenue beat(16)1
Avg Revenue beat(16)-4.57%
PT rev (1m)0.33%
PT rev (3m)-0.96%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-17.13%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-19.36%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.21 | ||
| Fwd PE | 14.65 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | 22 | ||
| P/B | 1.31 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 15.64 |
EPS(TTM)0.85
EY1.84%
EPS(NY)3.15
Fwd EY6.83%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)2.09
OCFY4.55%
SpS41.54
BVpS35.26
TBVpS12.65
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.15% | ||
| ROCE | 0.78% | ||
| ROIC | 0.66% | ||
| ROICexc | 0.68% | ||
| ROICexgc | 1.04% | ||
| OM | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.3% | ||
| 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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.64 | ||
| Cap/Depr | 67.36% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 52.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.5 |
F-Score5
WACC9.38%
ROIC/WACC0.07
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)-51.98%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-63.64%
EPS Next Y57.34%
EPS Next 2Y66.11%
EPS Next 3Y52.81%
EPS Next 5Y28.45%
Revenue 1Y (TTM)18.13%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%42.94%
Revenue Next Year39.81%
Revenue Next 2Y20.65%
Revenue Next 3Y14.69%
Revenue Next 5Y9.1%
EBIT growth 1Y-46.8%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year369.37%
EBIT Next 3Y89.16%
EBIT Next 5Y47.98%
FCF growth 1Y-113.1%
FCF growth 3Y-20.04%
FCF growth 5Y-20.16%
OCF growth 1Y-46.54%
OCF growth 3Y-6.15%
OCF growth 5Y-14.21%