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INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis

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

47.67  -0.96 (-1.97%)

After market: 46.9 -0.77 (-1.62%)

Fundamental Rating

3

Overall IP gets a fundamental rating of 3 out of 10. We evaluated IP against 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

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3

1. Profitability

1.1 Basic Checks

In the past year IP was profitable.
IP had a positive operating cash flow in the past year.
IP had positive earnings in each of the past 5 years.
IP had a positive operating cash flow in each of the past 5 years.
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

IP has a worse Return On Assets (0.96%) than 68.18% of its industry peers.
The Return On Equity of IP (2.19%) is worse than 68.18% of its industry peers.
IP has a worse Return On Invested Capital (0.78%) than 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IP is below the industry average of 7.48%.
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

With a Profit Margin value of 1.99%, IP perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
IP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 1.58%, IP is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
IP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.59%, IP is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
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

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3

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.
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.
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

IP has an Altman-Z score of 1.55. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, IP is doing worse than 68.18% of the companies in the same industry.
IP has a Debt/Equity ratio of 0.51. This is a neutral value indicating IP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, IP belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 1.55
ROIC/WACC0.09
WACC8.72%
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.
IP's Current ratio of 1.33 is fine compared to the rest of the industry. IP outperforms 63.64% of its industry peers.
A Quick Ratio of 0.96 indicates that IP may have some problems paying its short term obligations.
IP has a better Quick ratio (0.96) than 63.64% 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

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4

3. Growth

3.1 Past

The earnings per share for IP have decreased strongly by -33.70% in the last year.
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.
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

Based on estimates for the next years, IP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.97% on average per year.
The Revenue is expected to grow by 11.17% on average over the next years. This is quite good.
EPS Next Y96.01%
EPS Next 2Y73.56%
EPS Next 3Y55.34%
EPS Next 5Y32.97%
Revenue Next Year39.65%
Revenue Next 2Y21.28%
Revenue Next 3Y14.21%
Revenue Next 5Y11.17%

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.
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

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 39.73, the valuation of IP can be described as expensive.
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 (25.82), we can say IP is valued expensively.
The Price/Forward Earnings ratio is 13.88, which indicates a correct valuation of IP.
IP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, IP is valued a bit cheaper.
Industry RankSector Rank
PE 39.73
Fwd PE 13.88
IP Price Earnings VS Forward Price EarningsIP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

IP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. IP is more expensive than 81.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.85
IP Per share dataIP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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 55.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y73.56%
EPS Next 3Y55.34%

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4

5. Dividend

5.1 Amount

IP has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
IP's Dividend Yield is a higher than the industry average which is at 3.20.
Compared to an average S&P500 Dividend Yield of 2.36, IP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.73%

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
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 2Y73.56%
EPS Next 3Y55.34%
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

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INTERNATIONAL PAPER CO

NYSE:IP (5/23/2025, 7:04:06 PM)

After market: 46.9 -0.77 (-1.62%)

47.67

-0.96 (-1.97%)

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 Owners76.56%
Inst Owner Change22.41%
Ins Owners0.14%
Ins Owner Change4.89%
Market Cap25.16B
Analysts76.19
Price Target56.78 (19.11%)
Short Float %7.21%
Short Ratio6.52
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP183.33%
Div Incr Years0
Div Non Decr Years2
Ex-Date02-24 2025-02-24 (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)-5.4%
PT rev (3m)-3.05%
EPS NQ rev (1m)-30.04%
EPS NQ rev (3m)-40.69%
EPS NY rev (1m)-13.13%
EPS NY rev (3m)-18.2%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-3.2%
Revenue NY rev (1m)-3.13%
Revenue NY rev (3m)-4.44%
Valuation
Industry RankSector Rank
PE 39.73
Fwd PE 13.88
P/S 1.26
P/FCF N/A
P/OCF 25.34
P/B 1.39
P/tB 4.02
EV/EBITDA 17.85
EPS(TTM)1.2
EY2.52%
EPS(NY)3.43
Fwd EY7.2%
FCF(TTM)-0.01
FCFYN/A
OCF(TTM)1.88
OCFY3.95%
SpS37.7
BVpS34.27
TBVpS11.87
PEG (NY)0.41
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 1.55
F-Score7
WACC8.72%
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 Y96.01%
EPS Next 2Y73.56%
EPS Next 3Y55.34%
EPS Next 5Y32.97%
Revenue 1Y (TTM)7.49%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%27.75%
Revenue Next Year39.65%
Revenue Next 2Y21.28%
Revenue Next 3Y14.21%
Revenue Next 5Y11.17%
EBIT growth 1Y-47.23%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year393.63%
EBIT Next 3Y84.83%
EBIT Next 5Y48.81%
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%