INTERNATIONAL PAPER CO (IP)
US4601461035 - Common Stock
IP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Containers & Packaging industry. While IP seems to be doing ok healthwise, there are quite some concerns on its profitability. IP has a valuation in line with the averages, but it does not seem to be growing.
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.
IP had positive earnings in each of the past 5 years.
In the past 5 years IP always reported a positive cash flow from operatings.
1.2 Ratios
IP has a worse Return On Assets (1.24%) than 65.22% of its industry peers.
Looking at the Return On Equity, with a value of 3.45%, IP is doing worse than 65.22% of the companies in the same industry.
IP's Return On Invested Capital of 3.36% is on the low side compared to the rest of the industry. IP is outperformed by 78.26% of its industry peers.
IP had an Average Return On Invested Capital over the past 3 years of 5.69%. This is below the industry average of 8.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 3.45% | ||
| ROIC | 3.36% |
ROA(3y)4.82%
ROA(5y)3.93%
ROE(3y)13.48%
ROE(5y)12.49%
ROIC(3y)5.69%
ROIC(5y)6.04%
1.3 Margins
IP has a worse Profit Margin (1.52%) than 65.22% of its industry peers.
In the last couple of years the Profit Margin of IP has declined.
Looking at the Operating Margin, with a value of 4.05%, IP is doing worse than 73.91% of the companies in the same industry.
In the last couple of years the Operating Margin of IP has declined.
The Gross Margin of IP (27.95%) is better than 82.61% of its industry peers.
IP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.05% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.95% |
OM growth 3Y-19.41%
OM growth 5Y-20.43%
PM growth 3Y-17.83%
PM growth 5Y-29.32%
GM growth 3Y-2.06%
GM growth 5Y-3.41%
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 reduced compared to 1 year ago.
Compared to 5 years ago, IP has less shares outstanding
The debt/assets ratio for IP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.11 indicates that IP is not a great score, but indicates only limited risk for bankruptcy at the moment.
IP's Altman-Z score of 2.11 is in line compared to the rest of the industry. IP outperforms 56.52% of its industry peers.
The Debt to FCF ratio of IP is 8.08, which is on the high side as it means it would take IP, 8.08 years of fcf income to pay off all of its debts.
IP has a better Debt to FCF ratio (8.08) than 65.22% of its industry peers.
IP has a Debt/Equity ratio of 0.65. This is a neutral value indicating IP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, IP is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 8.08 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.39
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.67 indicates that IP should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.67, IP is doing good in the industry, outperforming 73.91% of the companies in the same industry.
A Quick Ratio of 1.19 indicates that IP should not have too much problems paying its short term obligations.
IP has a Quick ratio of 1.19. This is amongst the best in the industry. IP outperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.07%.
Measured over the past years, IP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.48% on average per year.
IP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.61%.
The Revenue has been decreasing by -4.09% on average over the past years.
EPS 1Y (TTM)-44.07%
EPS 3Y-8.15%
EPS 5Y-16.48%
EPS growth Q2Q-52.87%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y2.5%
Revenue growth 5Y-4.09%
Revenue growth Q2Q-10.36%
3.2 Future
Based on estimates for the next years, IP will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.51% on average per year.
IP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.16% yearly.
EPS Next Y5.02%
EPS Next 2Y18%
EPS Next 3Y17.64%
EPS Next 5Y17.51%
Revenue Next Year-1.21%
Revenue Next 2Y1.2%
Revenue Next 3Y1.26%
Revenue Next 5Y2.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.87, which indicates a correct valuation of IP.
Compared to the rest of the industry, the Price/Earnings ratio of IP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of IP to the average of the S&P500 Index (25.25), we can say IP is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.11 indicates a correct valuation of IP.
IP's Price/Forward Earnings is on the same level as the industry average.
IP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 15.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IP indicates a somewhat cheap valuation: IP is cheaper than 78.26% of the companies listed in the same industry.
IP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.28 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IP does not grow enough to justify the current Price/Earnings ratio.
IP's earnings are expected to grow with 17.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.16
PEG (5Y)N/A
EPS Next 2Y18%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 5.25%, which is a nice return.
Compared to an average industry Dividend Yield of 3.01, IP pays a better dividend. On top of this IP pays more dividend than 91.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, IP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
5.2 History
The dividend of IP decreases each year by -0.99%.
IP has paid a dividend for at least 10 years, which is a reliable track record.
IP has decreased its dividend recently.
Dividend Growth(5Y)-0.99%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
IP pays out 222.92% of its income as dividend. This is not a sustainable payout ratio.
DP222.92%
EPS Next 2Y18%
EPS Next 3Y17.64%
INTERNATIONAL PAPER CO
NYSE:IP (4/24/2024, 7:09:59 PM)
Premarket: 33.07 -1.36 (-3.95%)34.43
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 15.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.24% | ||
| ROE | 3.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.05% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-44.07%
EPS 3Y-8.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y2.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y