INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IP - US4601461035 - Common Stock
43 USD
-0.04 (-0.09%)
43 USD
0 (0%)
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 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.
- 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
- IP has a Return On Assets of -3.15%. This is in the lower half of the industry: IP underperforms 77.27% of its industry peers.
- 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.
- IP's Operating Margin has declined in the last couple of years.
- IP has a Gross Margin of 28.96%. This is in the better half of the industry: IP outperforms 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%
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
- Based on the Altman-Z score of 1.49, we must say that IP is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.49, IP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- 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 fine compared to the rest of the industry. IP outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that IP should not have too much problems paying its short term obligations.
- IP's Current ratio of 1.31 is in line compared to the rest of the industry. IP outperforms 45.45% of 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.
- Looking at the Quick ratio, with a value of 1.04, IP is in line with its industry, outperforming 59.09% of the companies in the same 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.
- The Revenue has grown by 25.91% in the past year. This is a very strong growth!
- The Revenue has been decreasing by -3.61% on average over the past years.
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.
- The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y-78.72%
EPS Next 2Y34.3%
EPS Next 3Y38.69%
EPS Next 5Y26.74%
Revenue Next Year30.47%
Revenue Next 2Y14.39%
Revenue Next 3Y10.64%
Revenue Next 5Y7.44%
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.
- 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
- The Price/Earnings Ratio is negative for IP. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 20.91, the valuation of IP can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of IP indicates a slightly more expensive valuation: IP is more expensive than 68.18% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, IP is valued a bit more expensive than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.59 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as IP's earnings are expected to grow with 38.69% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.3%
EPS Next 3Y38.69%
5. Dividend
5.1 Amount
- IP has a Yearly Dividend Yield of 4.42%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.38, IP pays a better dividend. On top of this IP pays more dividend than 90.91% of the companies listed in the same industry.
- IP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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
- IP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-69.9%
EPS Next 2Y34.3%
EPS Next 3Y38.69%
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%.