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INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis

NYSE:IP - New York Stock Exchange, Inc. - US4601461035 - Common Stock - Currency: USD

57.05  -0.93 (-1.6%)

After market: 57.05 0 (0%)

Fundamental Rating

4

IP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. While IP seems to be doing ok healthwise, there are quite some concerns on its profitability. IP does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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3

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.
Each year in the past 5 years IP has been profitable.
Each year in the past 5 years IP had a positive operating cash flow.
IP Yearly Net Income VS EBIT VS OCF VS FCFIP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

1.2 Ratios

Looking at the Return On Assets, with a value of 1.81%, IP is doing worse than 60.87% of the companies in the same industry.
The Return On Equity of IP (4.87%) is worse than 60.87% of its industry peers.
The Return On Invested Capital of IP (1.74%) is worse than 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IP is below the industry average of 7.70%.
Industry RankSector Rank
ROA 1.81%
ROE 4.87%
ROIC 1.74%
ROA(3y)4.82%
ROA(5y)3.93%
ROE(3y)13.48%
ROE(5y)12.49%
ROIC(3y)5.69%
ROIC(5y)6.04%
IP Yearly ROA, ROE, ROICIP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

IP has a Profit Margin of 2.25%. This is in the lower half of the industry: IP underperforms 60.87% of its industry peers.
In the last couple of years the Profit Margin of IP has declined.
IP has a worse Operating Margin (2.08%) than 82.61% of its industry peers.
In the last couple of years the Operating Margin of IP has declined.
The Gross Margin of IP (28.07%) is better than 73.91% of its industry peers.
IP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.08%
PM (TTM) 2.25%
GM 28.07%
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%
IP Yearly Profit, Operating, Gross MarginsIP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IP is destroying value.
The number of shares outstanding for IP has been reduced compared to 1 year ago.
The number of shares outstanding for IP has been reduced compared to 5 years ago.
The debt/assets ratio for IP is higher compared to a year ago.
IP Yearly Shares OutstandingIP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
IP Yearly Total Debt VS Total AssetsIP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

IP has an Altman-Z score of 2.40. This is not the best score and indicates that IP is in the grey zone with still only limited risk for bankruptcy at the moment.
IP has a Altman-Z score of 2.40. This is in the better half of the industry: IP outperforms 78.26% of its industry peers.
The Debt to FCF ratio of IP is 6.90, which is on the high side as it means it would take IP, 6.90 years of fcf income to pay off all of its debts.
IP's Debt to FCF ratio of 6.90 is amongst the best of the industry. IP outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that IP is somewhat dependend on debt financing.
IP has a better Debt to Equity ratio (0.62) than 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 6.9
Altman-Z 2.4
ROIC/WACC0.2
WACC8.71%
IP Yearly LT Debt VS Equity VS FCFIP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.3 Liquidity

IP has a Current Ratio of 1.53. This is a normal value and indicates that IP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.53, IP perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that IP should not have too much problems paying its short term obligations.
IP's Quick ratio of 1.11 is fine compared to the rest of the industry. IP outperforms 60.87% of its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.11
IP Yearly Current Assets VS Current LiabilitesIP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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3

3. Growth

3.1 Past

IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.30%.
IP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.48% yearly.
The Revenue has decreased by -4.15% in the past year.
IP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.09% yearly.
EPS 1Y (TTM)-40.3%
EPS 3Y-8.15%
EPS 5Y-16.48%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)-4.15%
Revenue growth 3Y2.5%
Revenue growth 5Y-4.09%
Sales Q2Q%1.58%

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 15.01% on average per year.
Based on estimates for the next years, IP will show a small growth in Revenue. The Revenue will grow by 3.57% on average per year.
EPS Next Y-40.4%
EPS Next 2Y18.26%
EPS Next 3Y22.35%
EPS Next 5Y15.01%
Revenue Next Year-0.97%
Revenue Next 2Y1.84%
Revenue Next 3Y2.49%
Revenue Next 5Y3.57%

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.
IP Yearly Revenue VS EstimatesIP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
IP Yearly EPS VS EstimatesIP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4 5

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 36.34, the valuation of IP can be described as expensive.
IP's Price/Earnings ratio is rather expensive when compared to the industry. IP is more expensive than 82.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of IP to the average of the S&P500 Index (28.51), we can say IP is valued slightly more expensively.
With a Price/Forward Earnings ratio of 18.80, 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 78.26% of the companies are valued more cheaply.
IP is valuated cheaply when we compare the Price/Forward Earnings ratio to 93.88, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 36.34
Fwd PE 18.8
IP Price Earnings VS Forward Price EarningsIP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

IP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IP is more expensive than 73.91% of the companies in the same industry.
IP's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 24.56
EV/EBITDA 13.04
IP Per share dataIP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

A more expensive valuation may be justified as IP's earnings are expected to grow with 22.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.26%
EPS Next 3Y22.35%

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3

5. Dividend

5.1 Amount

IP has a Yearly Dividend Yield of 3.16%.
Compared to an average industry Dividend Yield of 3.06, IP pays a bit more dividend than its industry peers.
IP's Dividend Yield is a higher than the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 3.16%

5.2 History

The dividend of IP decreases each year by -1.01%.
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)-1.01%
Div Incr Years0
Div Non Decr Years2
IP Yearly Dividends per shareIP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

152.86% of the earnings are spent on dividend by IP. This is not a sustainable payout ratio.
DP152.86%
EPS Next 2Y18.26%
EPS Next 3Y22.35%
IP Yearly Income VS Free CF VS DividendIP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
IP Dividend Payout.IP Dividend Payout, showing the Payout Ratio.IP Dividend Payout.PayoutRetained Earnings

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INTERNATIONAL PAPER CO

NYSE:IP (1/30/2025, 8:04:00 PM)

After market: 57.05 0 (0%)

57.05

-0.93 (-1.6%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)01-30 2025-01-30/bmo
Inst Owners96.02%
Inst Owner Change0.1%
Ins Owners0.18%
Ins Owner Change-0.45%
Market Cap19.82B
Analysts77.78
Price Target58.29 (2.17%)
Short Float %14.31%
Short Ratio11.31
Dividend
Industry RankSector Rank
Dividend Yield 3.16%
Yearly Dividend1.84
Dividend Growth(5Y)-1.01%
DP152.86%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.36%
Min EPS beat(2)29.36%
Max EPS beat(2)65.36%
EPS beat(4)3
Avg EPS beat(4)21.19%
Min EPS beat(4)-25.79%
Max EPS beat(4)65.36%
EPS beat(8)7
Avg EPS beat(8)22.46%
EPS beat(12)9
Avg EPS beat(12)16.78%
EPS beat(16)10
Avg EPS beat(16)12.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-4.42%
Max Revenue beat(4)-1.56%
Revenue beat(8)0
Avg Revenue beat(8)-4.13%
Revenue beat(12)1
Avg Revenue beat(12)-3.19%
Revenue beat(16)1
Avg Revenue beat(16)-9.42%
PT rev (1m)-0.37%
PT rev (3m)14.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-94.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.31%
Valuation
Industry RankSector Rank
PE 36.34
Fwd PE 18.8
P/S 1.06
P/FCF 24.56
P/OCF 11.18
P/B 2.3
P/tB 3.65
EV/EBITDA 13.04
EPS(TTM)1.57
EY2.75%
EPS(NY)3.03
Fwd EY5.32%
FCF(TTM)2.32
FCFY4.07%
OCF(TTM)5.1
OCFY8.95%
SpS53.65
BVpS24.84
TBVpS15.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.81%
ROE 4.87%
ROCE 2.06%
ROIC 1.74%
ROICexc 1.85%
ROICexgc 2.26%
OM 2.08%
PM (TTM) 2.25%
GM 28.07%
FCFM 4.33%
ROA(3y)4.82%
ROA(5y)3.93%
ROE(3y)13.48%
ROE(5y)12.49%
ROIC(3y)5.69%
ROIC(5y)6.04%
ROICexc(3y)6.03%
ROICexc(5y)6.58%
ROICexgc(3y)7.28%
ROICexgc(5y)7.89%
ROCE(3y)6.73%
ROCE(5y)7.15%
ROICexcg growth 3Y-17.93%
ROICexcg growth 5Y-15.49%
ROICexc growth 3Y-17.7%
ROICexc growth 5Y-16.63%
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%
F-Score7
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 6.9
Debt/EBITDA 2.82
Cap/Depr 64.62%
Cap/Sales 5.18%
Interest Coverage 0.87
Cash Conversion 94.21%
Profit Quality 192.14%
Current Ratio 1.53
Quick Ratio 1.11
Altman-Z 2.4
F-Score7
WACC8.71%
ROIC/WACC0.2
Cap/Depr(3y)71.52%
Cap/Depr(5y)74.13%
Cap/Sales(3y)4.42%
Cap/Sales(5y)4.65%
Profit Quality(3y)135.82%
Profit Quality(5y)215.45%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.3%
EPS 3Y-8.15%
EPS 5Y-16.48%
EPS Q2Q%-31.25%
EPS Next Y-40.4%
EPS Next 2Y18.26%
EPS Next 3Y22.35%
EPS Next 5Y15.01%
Revenue 1Y (TTM)-4.15%
Revenue growth 3Y2.5%
Revenue growth 5Y-4.09%
Sales Q2Q%1.58%
Revenue Next Year-0.97%
Revenue Next 2Y1.84%
Revenue Next 3Y2.49%
Revenue Next 5Y3.57%
EBIT growth 1Y-71.16%
EBIT growth 3Y-17.4%
EBIT growth 5Y-23.68%
EBIT Next Year67.65%
EBIT Next 3Y37.71%
EBIT Next 5Y25.64%
FCF growth 1Y13.66%
FCF growth 3Y-33.09%
FCF growth 5Y-15.99%
OCF growth 1Y16.64%
OCF growth 3Y-15.71%
OCF growth 5Y-10.69%