INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IP - US4601461035 - Common Stock
43.34 USD
+1.26 (+2.99%)
43.34 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. 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
IP had negative earnings in the past year.
In the past year IP had a positive cash flow from operations.
Each year in the past 5 years IP has been profitable.
IP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IP has a worse Return On Assets (-3.15%) than 77.27% of its industry peers.
IP has a worse Return On Equity (-7.39%) than 72.73% of its industry peers.
| 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.
IP's Gross Margin of 28.96% is fine compared to the rest of the industry. IP outperforms 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.
Compared to 1 year ago, IP has more shares outstanding
Compared to 5 years ago, IP has less shares outstanding
IP has a worse debt/assets ratio than last year.
2.2 Solvency
IP has an Altman-Z score of 1.49. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
IP has a Altman-Z score of 1.49. This is in the lower half of the industry: IP underperforms 68.18% 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.
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 | 1.49 |
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.
The Current ratio of IP (1.31) is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that IP should not have too much problems paying its short term obligations.
The Quick ratio of IP (1.04) is comparable to the rest of the industry.
| 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.
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 26.74% yearly.
Based on estimates for the next years, IP will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
EPS Next Y-77.11%
EPS Next 2Y36.6%
EPS Next 3Y38.95%
EPS Next 5Y26.74%
Revenue Next Year29.8%
Revenue Next 2Y14.49%
Revenue Next 3Y10.67%
Revenue Next 5Y7.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of IP can be described as rather expensive.
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.
IP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IP is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IP's earnings are expected to grow with 38.95% in the coming years.
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 4.40%, IP is a good candidate for dividend investing.
IP's Dividend Yield is rather good when compared to the industry average which is at 2.39. IP pays more dividend than 86.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, IP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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.
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
The earnings of IP are negative and hence is the payout ratio. IP will probably not be able to sustain this dividend level.
DP-69.9%
EPS Next 2Y36.6%
EPS Next 3Y38.95%
43.34
+1.26 (+2.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners104.54%
Inst Owner Change0.18%
Ins Owners0.15%
Ins Owner Change0.33%
Market Cap22.89B
Revenue(TTM)23.47B
Net Income(TTM)-1.28B
Analysts79.09
Price Target48.78 (12.55%)
Short Float %9.9%
Short Ratio10.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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)-1.24%
PT rev (3m)-11.78%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-55.76%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-85.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.82%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-7.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.37 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 19.23 | ||
| P/B | 1.32 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.13
Fwd EY4.91%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY5.2%
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 | 1.49 |
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 5Y26.74%
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 5Y7.44%
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 5Y48.8%
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%.