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INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis

NYSE:IP - New York Stock Exchange, Inc. - US4601461035 - Common Stock - Currency: USD

55.68  +0.88 (+1.61%)

After market: 55.68 0 (0%)

Fundamental Rating

3

Taking everything into account, IP scores 3 out of 10 in our fundamental rating. IP was compared to 22 industry peers in the Containers & Packaging industry. IP has a bad profitability rating. Also its financial health evaluation is rather negative. IP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

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.
IP Yearly Net Income VS EBIT VS OCF VS FCFIP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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.
With a Return On Equity value of 2.19%, IP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Return On Invested Capital of IP (0.78%) is worse than 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 7.52%.
Industry RankSector 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%
IP Yearly ROA, ROE, ROICIP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 1.99%, IP is in line with its industry, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Profit Margin of IP has declined.
Looking at the Operating Margin, with a value of 1.58%, IP is doing worse than 77.27% of the companies in the same industry.
IP's Operating Margin has declined in the last couple of years.
IP has a better Gross Margin (28.59%) than 77.27% of its industry peers.
IP's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
IP Yearly Profit, Operating, Gross MarginsIP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

3

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.
Compared to 1 year ago, IP has a worse debt to assets ratio.
IP Yearly Shares OutstandingIP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
IP Yearly Total Debt VS Total AssetsIP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of 1.64, we must say that IP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.64, IP is not doing good in the industry: 63.64% 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.
IP's Debt to Equity ratio of 0.51 is amongst the best of the industry. IP outperforms 90.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 1.64
ROIC/WACC0.09
WACC8.66%
IP Yearly LT Debt VS Equity VS FCFIP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.3 Liquidity

IP has a Current Ratio of 1.33. This is a normal value and indicates that IP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of IP (1.33) is better than 63.64% of 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.
IP has a Quick ratio of 0.96. This is in the better half of the industry: IP outperforms 72.73% of its industry peers.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 0.96
IP Yearly Current Assets VS Current LiabilitesIP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

4

3. Growth

3.1 Past

IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.70%.
The earnings per share for IP have been decreasing by -23.81% on average. This is quite bad
The Revenue has been growing slightly by 7.49% in the past year.
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

The Earnings Per Share is expected to grow by 30.29% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.64% on average over the next years. This is quite good.
EPS Next Y96.3%
EPS Next 2Y74.58%
EPS Next 3Y56.22%
EPS Next 5Y30.29%
Revenue Next Year39.48%
Revenue Next 2Y21.08%
Revenue Next 3Y14.35%
Revenue Next 5Y10.64%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
IP Yearly Revenue VS EstimatesIP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
IP Yearly EPS VS EstimatesIP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4 5

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 46.40, the valuation of IP can be described as expensive.
81.82% of the companies in the same industry are cheaper than IP, based on the Price/Earnings ratio.
IP is valuated expensively when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.03 indicates a correct valuation of IP.
63.64% of the companies in the same industry are cheaper than IP, based on the Price/Forward Earnings ratio.
IP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
Industry RankSector Rank
PE 46.4
Fwd PE 16.03
IP Price Earnings VS Forward Price EarningsIP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

81.82% of the companies in the same industry are cheaper than IP, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.56
IP Per share dataIP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 56.22% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y74.58%
EPS Next 3Y56.22%

4

5. Dividend

5.1 Amount

IP has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 3.02, 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 2.35, IP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.63%

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
IP Yearly Dividends per shareIP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

IP pays out 183.33% of its income as dividend. This is not a sustainable payout ratio.
DP183.33%
EPS Next 2Y74.58%
EPS Next 3Y56.22%
IP Yearly Income VS Free CF VS DividendIP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
IP Dividend Payout.IP Dividend Payout, showing the Payout Ratio.IP Dividend Payout.PayoutRetained Earnings

INTERNATIONAL PAPER CO

NYSE:IP (7/25/2025, 8:04:00 PM)

After market: 55.68 0 (0%)

55.68

+0.88 (+1.61%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners94.24%
Inst Owner Change0.05%
Ins Owners0.16%
Ins Owner Change4.84%
Market Cap29.39B
Analysts75.45
Price Target56.55 (1.56%)
Short Float %8.55%
Short Ratio10.6
Dividend
Industry RankSector Rank
Dividend Yield 3.63%
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP183.33%
Div Incr Years0
Div Non Decr Years2
Ex-Date05-23 2025-05-23 (0.4625)
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)1.51%
PT rev (3m)-5.77%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)-28.76%
EPS NY rev (1m)0.61%
EPS NY rev (3m)-13.01%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.25%
Valuation
Industry RankSector Rank
PE 46.4
Fwd PE 16.03
P/S 1.48
P/FCF N/A
P/OCF 29.6
P/B 1.62
P/tB 4.69
EV/EBITDA 19.56
EPS(TTM)1.2
EY2.16%
EPS(NY)3.47
Fwd EY6.24%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)1.88
OCFY3.38%
SpS37.7
BVpS34.27
TBVpS11.87
PEG (NY)0.48
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 1.64
F-Score7
WACC8.66%
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 Y96.3%
EPS Next 2Y74.58%
EPS Next 3Y56.22%
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 Year39.48%
Revenue Next 2Y21.08%
Revenue Next 3Y14.35%
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%