INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
NYSE:IP - New York Stock Exchange, Inc. - US4601461035 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.64 |
ROIC/WACC0.09
WACC8.66%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.4 | ||
| Fwd PE | 16.03 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.56 |
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%
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 Rank | Sector 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
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%
55.68
+0.88 (+1.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP183.33%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%