IP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. IP has a bad profitability rating. Also its financial health evaluation is rather negative. IP does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year IP has reported negative net income.
IP had a positive operating cash flow in the past year.
IP had positive earnings in 4 of the past 5 years.
IP had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -3.15%, IP is doing worse than 77.27% of the companies in the same industry.
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

IP's Profit Margin has declined in the last couple of years.
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.
In the last couple of years the Gross Margin of IP has declined.
IP does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

IP does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for IP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

IP has an Altman-Z score of 1.45. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IP (1.45) is worse than 63.64% of its industry peers.
IP has a Debt/Equity ratio of 0.64. This is a neutral value indicating IP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, IP is in the better half of the industry, outperforming 68.18% 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

WACC9.29%

2.3 Liquidity

A Current Ratio of 1.31 indicates that IP should not have too much problems paying its short term obligations.
The Current ratio of IP (1.31) is comparable to the rest of the industry.
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.
The Quick ratio of IP (1.04) is better than 68.18% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.31
Quick Ratio	1.04

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for IP have decreased strongly by -107.02% in the last year.

EPS 1Y (TTM)-107.02%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-300%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%31.14%

3.2 Future

IP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 114.36% yearly.
The Revenue is expected to grow by 2.35% on average over the next years.

EPS Next Y2670.17%

EPS Next 2Y532.54%

EPS Next 3Y247.01%

EPS Next 5Y114.36%

Revenue Next Year0.3%

Revenue Next 2Y1.89%

Revenue Next 3Y2.36%

Revenue Next 5Y2.35%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

IP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 19.61, IP is valued on the expensive side.
Based on the Price/Forward Earnings ratio, IP is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 25.57. IP is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	19.61

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	13.03

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.
A more expensive valuation may be justified as IP's earnings are expected to grow with 247.00% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y532.54%

EPS Next 3Y247.01%

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5. Dividend

5.1 Amount

IP has a Yearly Dividend Yield of 4.74%, which is a nice return.
IP's Dividend Yield is rather good when compared to the industry average which is at 2.40. IP pays more dividend than 90.91% of the companies in the same industry.
IP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	4.74%

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

5.3 Sustainability

IP has negative earnings and hence a negative payout ratio. The dividend may be in danger.

DP-69.9%

EPS Next 2Y532.54%

EPS Next 3Y247.01%

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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 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.

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%.