INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IP - US4601461035 - Common Stock
39.13 USD
+1.54 (+4.1%)
39.13 USD
0 (0%)
Overall IP gets a fundamental rating of 3 out of 10. We evaluated IP against 22 industry peers in the Containers & Packaging industry. IP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, IP is valued expensive at the moment.
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.
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.
1.2 Ratios
With a Return On Assets value of -3.15%, IP is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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.
In the last couple of years the Operating Margin of IP has declined.
With a decent Gross Margin value of 28.96%, IP is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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.
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 1.41, we must say that IP is in the distress zone and has some risk of bankruptcy.
IP's Altman-Z score of 1.41 is on the low side compared to the rest of the industry. IP is outperformed by 68.18% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that IP is somewhat dependend on debt financing.
IP's Debt to Equity ratio of 0.64 is amongst the best of the industry. IP outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACCN/A
WACC9.02%
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.
IP has a Quick Ratio of 1.04. 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 Quick ratio of 1.04. This is in the better half 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
Looking at the last year, IP shows a very strong growth in Revenue. The Revenue has grown by 25.91%.
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)-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
The Earnings Per Share is expected to grow by 24.23% on average over the next years. This is a very strong growth
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-57.05%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
EPS Next 5Y24.23%
Revenue Next Year31.52%
Revenue Next 2Y15.8%
Revenue Next 3Y11.41%
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.
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.
Based on the Price/Forward Earnings ratio of 16.19, the valuation of IP can be described as correct.
Based on the Price/Forward Earnings ratio, IP is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
IP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.19 |
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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.47 |
4.3 Compensation for Growth
IP's earnings are expected to grow with 43.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.6%
EPS Next 3Y43.41%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 5.20%, which is a nice return.
In the last 3 months the price of IP has falen by -21.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IP's Dividend Yield is rather good when compared to the industry average which is at 3.50. IP pays more dividend than 86.36% of the companies in the same industry.
IP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-69.9%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
39.13
+1.54 (+4.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change15.25%
Ins Owners0.15%
Ins Owner Change-0.21%
Market Cap20.66B
Revenue(TTM)23.47B
Net Income(TTM)-1.28B
Analysts77.27
Price Target48.43 (23.77%)
Short Float %10.04%
Short Ratio11.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
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)-12.43%
PT rev (3m)-12.8%
EPS NQ rev (1m)-55.26%
EPS NQ rev (3m)-56.29%
EPS NY rev (1m)-70.26%
EPS NY rev (3m)-78.12%
Revenue NQ rev (1m)-7.11%
Revenue NQ rev (3m)-12.04%
Revenue NY rev (1m)-2.82%
Revenue NY rev (3m)-6.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.19 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 17.36 | ||
| P/B | 1.19 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 12.47 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.42
Fwd EY6.18%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY5.76%
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 | 1.41 |
F-Score4
WACC9.02%
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 5Y24.23%
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 5Y7.46%
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 5Y47.36%
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.
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 2 / 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%.