INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IP - US4601461035 - Common Stock
40.25 USD
+0.86 (+2.18%)
40.26 USD
+0.01 (+0.02%)
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. Both the profitability and financial health of IP have multiple concerns. IP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IP has reported negative net income.
In the past year IP had a positive cash flow from operations.
Each year in the past 5 years IP has been profitable.
In the past 5 years IP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IP (-3.15%) is worse than 77.27% of its industry peers.
With a Return On Equity value of -7.39%, IP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| 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
In the last couple of years the Profit Margin of IP has declined.
IP's Operating Margin has declined in the last couple of years.
The Gross Margin of IP (28.96%) is better than 77.27% of its industry peers.
IP's Gross Margin has declined in the last couple of years.
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.
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.
IP has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that IP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.45, IP is doing worse than 68.18% of the companies in the same industry.
IP has a Debt/Equity ratio of 0.64. This is a neutral value indicating IP is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.64, IP is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.45 |
ROIC/WACCN/A
WACC9.1%
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.
Looking at the Quick ratio, with a value of 1.04, IP is in line with its industry, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -101.27%.
IP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.81% yearly.
Looking at the last year, IP shows a very strong growth in Revenue. 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
IP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.23% yearly.
IP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.46% yearly.
EPS Next Y-77.11%
EPS Next 2Y36.6%
EPS Next 3Y38.95%
EPS Next 5Y24.23%
Revenue Next Year29.8%
Revenue Next 2Y14.49%
Revenue Next 3Y10.67%
Revenue Next 5Y7.46%
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
IP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 18.92, which indicates a rather expensive current valuation of IP.
68.18% of the companies in the same industry are cheaper than IP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. IP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.92 |
4.2 Price Multiples
IP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IP is more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.02 |
4.3 Compensation for Growth
IP's earnings are expected to grow with 38.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.6%
EPS Next 3Y38.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.70%, IP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.52, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
5.2 History
The dividend of IP decreases each year by -1.58%.
IP has paid a dividend for at least 10 years, which is 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-69.9%
EPS Next 2Y36.6%
EPS Next 3Y38.95%
40.25
+0.86 (+2.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners104.54%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change-0.25%
Market Cap21.25B
Revenue(TTM)23.47B
Net Income(TTM)-1.28B
Analysts79.09
Price Target48.78 (21.19%)
Short Float %9.9%
Short Ratio10.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP-69.9%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)0.73%
PT rev (3m)-12.38%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-55.77%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-85.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.83%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-7.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.92 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 17.86 | ||
| P/B | 1.23 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 13.02 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.13
Fwd EY5.28%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY5.6%
SpS44.45
BVpS32.79
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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.34 | ||
| 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 | 1.45 |
F-Score4
WACC9.1%
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-77.11%
EPS Next 2Y36.6%
EPS Next 3Y38.95%
EPS Next 5Y24.23%
Revenue 1Y (TTM)25.91%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%32.78%
Revenue Next Year29.8%
Revenue Next 2Y14.49%
Revenue Next 3Y10.67%
Revenue Next 5Y7.46%
EBIT growth 1Y-139.1%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year319.53%
EBIT Next 3Y80.59%
EBIT Next 5Y47.36%
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.
What is the valuation status for IP stock?
ChartMill assigns a valuation rating of 1 / 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 2 / 10.
What is the financial health of INTERNATIONAL PAPER CO (IP) stock?
The financial health rating of INTERNATIONAL PAPER CO (IP) is 3 / 10.
Can you provide the dividend sustainability for IP stock?
The dividend rating of INTERNATIONAL PAPER CO (IP) is 5 / 10 and the dividend payout ratio is -69.9%.