INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - NYSE:IP - US4601461035 - Common Stock
36.56 USD
-0.37 (-1%)
36.57 USD
+0.01 (+0.03%)
Overall IP gets a fundamental rating of 3 out of 10. We evaluated IP against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of IP have multiple concerns. IP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IP had negative earnings in the past year.
IP had a positive operating cash flow in the past year.
Each year in the past 5 years IP has been profitable.
Each year in the past 5 years IP had a positive operating cash flow.
1.2 Ratios
IP's Return On Assets of -3.15% is on the low side compared to the rest of the industry. IP is outperformed by 77.27% of its industry peers.
Looking at the Return On Equity, with a value of -7.39%, IP is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.15% | ||
| ROE | -7.39% | ||
| ROIC | N/A |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
IP's Profit Margin has declined in the last couple of years.
IP's Operating Margin has declined in the last couple of years.
IP's Gross Margin of 28.96% is amongst the best of the industry. IP outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of IP has declined.
The Profit Margin and Operating Margin are not available for IP so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 28.96% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
IP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for IP has been reduced compared to 5 years ago.
IP has a worse debt/assets ratio than last year.
2.2 Solvency
IP has an Altman-Z score of 1.40. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IP (1.40) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that IP is somewhat dependend on debt financing.
IP has a Debt to Equity ratio of 0.52. This is amongst the best in the industry. IP outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACCN/A
WACC9.09%
2.3 Liquidity
IP has a Current Ratio of 1.31. This is a normal value and indicates that IP is financially healthy and should not expect problems in meeting its short term obligations.
IP has a Current ratio (1.31) which is in line with its industry peers.
A Quick Ratio of 1.04 indicates that IP should not have too much problems paying its short term obligations.
IP's Quick ratio of 1.04 is fine compared to the rest of the industry. IP outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The earnings per share for IP have decreased strongly by -101.27% in the last year.
The earnings per share for IP have been decreasing by -23.81% on average. This is quite bad
IP shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.91%.
IP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.61% yearly.
EPS 1Y (TTM)-101.27%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-197.73%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%32.78%
3.2 Future
Based on estimates for the next years, IP will show a very strong growth in Earnings Per Share. The EPS will grow by 28.45% on average per year.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
EPS Next Y-57.05%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
EPS Next 5Y28.45%
Revenue Next Year31.52%
Revenue Next 2Y15.8%
Revenue Next 3Y11.41%
Revenue Next 5Y9.1%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for IP. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 15.13 indicates a correct valuation of IP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IP indicates a slightly more expensive valuation: IP is more expensive than 63.64% of the companies listed in the same industry.
IP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IP indicates a slightly more expensive valuation: IP is more expensive than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.5 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IP's earnings are expected to grow with 43.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.6%
EPS Next 3Y43.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.79%, IP is a good candidate for dividend investing.
In the last 3 months the price of IP has falen by -23.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.54, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
5.2 History
The dividend of IP decreases each year by -1.57%.
IP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IP decreased in the last 3 years.
Dividend Growth(5Y)-1.57%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of IP are negative and hence is the payout ratio. IP will probably not be able to sustain this dividend level.
DP-69.9%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
36.56
-0.37 (-1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-0.39%
Ins Owners0.15%
Ins Owner Change0.28%
Market Cap19.30B
Revenue(TTM)23.47B
Net Income(TTM)-1279000000
Analysts77.27
Price Target53.1 (45.24%)
Short Float %10.33%
Short Ratio14.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.79% |
Yearly Dividend1.86
Dividend Growth(5Y)-1.57%
DP-69.9%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-120.66%
Min EPS beat(2)-188.84%
Max EPS beat(2)-52.48%
EPS beat(4)0
Avg EPS beat(4)-115.49%
Min EPS beat(4)-188.84%
Max EPS beat(4)-39.75%
EPS beat(8)3
Avg EPS beat(8)-47.15%
EPS beat(12)7
Avg EPS beat(12)-23.53%
EPS beat(16)9
Avg EPS beat(16)-16.29%
Revenue beat(2)0
Avg Revenue beat(2)-4.54%
Min Revenue beat(2)-7.04%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-5.8%
Min Revenue beat(4)-7.84%
Max Revenue beat(4)-2.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.52%
Revenue beat(12)0
Avg Revenue beat(12)-4.69%
Revenue beat(16)1
Avg Revenue beat(16)-3.84%
PT rev (1m)-4.61%
PT rev (3m)-6.1%
EPS NQ rev (1m)-15.06%
EPS NQ rev (3m)-30.86%
EPS NY rev (1m)-8.2%
EPS NY rev (3m)-26.42%
Revenue NQ rev (1m)-3.85%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)-3.22%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.13 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | 16.22 | ||
| P/B | 1.11 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 11.5 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.42
Fwd EY6.61%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY6.16%
SpS44.45
BVpS32.8
TBVpS10.36
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.15% | ||
| ROE | -7.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 28.96% | ||
| FCFM | N/A |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)5.27%
ROCE(5y)5.71%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.51 | ||
| Cap/Depr | 54.68% | ||
| Cap/Sales | 6.25% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 46.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.4 |
F-Score5
WACC9.09%
ROIC/WACCN/A
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)-101.27%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-197.73%
EPS Next Y-57.05%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
EPS Next 5Y28.45%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%32.78%
Revenue Next Year31.52%
Revenue Next 2Y15.8%
Revenue Next 3Y11.41%
Revenue Next 5Y9.1%
EBIT growth 1Y-139.1%
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-129.34%
FCF growth 3Y-20.04%
FCF growth 5Y-20.16%
OCF growth 1Y-43.39%
OCF growth 3Y-6.15%
OCF growth 5Y-14.21%
INTERNATIONAL PAPER CO / IP FAQ
Can you provide the ChartMill fundamental rating for INTERNATIONAL PAPER CO?
ChartMill assigns a fundamental rating of 3 / 10 to IP.
Can you provide the valuation status for INTERNATIONAL PAPER CO?
ChartMill assigns a valuation rating of 2 / 10 to INTERNATIONAL PAPER CO (IP). This can be considered as Overvalued.
Can you provide the profitability details for INTERNATIONAL PAPER CO?
INTERNATIONAL PAPER CO (IP) has a profitability rating of 3 / 10.
Can you provide the financial health for IP stock?
The financial health rating of INTERNATIONAL PAPER CO (IP) is 3 / 10.
How sustainable is the dividend of INTERNATIONAL PAPER CO (IP) stock?
The dividend rating of INTERNATIONAL PAPER CO (IP) is 5 / 10 and the dividend payout ratio is -69.9%.