INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IP - US4601461035 - Common Stock
38.54 USD
-0.51 (-1.31%)
38.54 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.
IP had positive earnings in each of the past 5 years.
Each year in the past 5 years IP had a positive operating cash flow.
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.
IP has a Return On Equity of -7.39%. This is in the lower half of the industry: IP underperforms 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.
In the last couple of years the Operating Margin of IP has declined.
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.
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.
The number of shares outstanding for IP has been increased compared to 1 year ago.
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 1.43. 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 1.43. This is in the lower half of the industry: IP underperforms 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 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 | 1.43 |
ROIC/WACCN/A
WACC9.15%
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.
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 comparable to the rest of the industry: IP outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
IP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -101.27%.
The earnings per share for IP have been decreasing by -23.81% on average. This is quite bad
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
Based on estimates for the next years, IP will show a very strong growth in Earnings Per Share. The EPS will grow by 24.23% on average per year.
The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y-77.01%
EPS Next 2Y38.29%
EPS Next 3Y39.99%
EPS Next 5Y24.23%
Revenue Next Year29.81%
Revenue Next 2Y14.54%
Revenue Next 3Y10.69%
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.
A Price/Forward Earnings ratio of 17.68 indicates a rather expensive valuation of IP.
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 63.64% of the companies listed in the same industry.
IP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.68 |
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 | 12.67 |
4.3 Compensation for Growth
A more expensive valuation may be justified as IP's earnings are expected to grow with 39.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.29%
EPS Next 3Y39.99%
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 2.52. 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 1.87.
| 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.
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
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 2Y38.29%
EPS Next 3Y39.99%
38.54
-0.51 (-1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners104.51%
Inst Owner Change15.29%
Ins Owners0.15%
Ins Owner Change-0.21%
Market Cap20.35B
Revenue(TTM)23.47B
Net Income(TTM)-1.28B
Analysts79.09
Price Target49.39 (28.15%)
Short Float %10.53%
Short Ratio11.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
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)-6.99%
PT rev (3m)-11.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.57%
EPS NY rev (1m)-46.48%
EPS NY rev (3m)-85.38%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-10.83%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-7.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.68 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 17.1 | ||
| P/B | 1.18 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 12.67 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.18
Fwd EY5.66%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY5.85%
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 | 1.43 |
F-Score4
WACC9.15%
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-77.01%
EPS Next 2Y38.29%
EPS Next 3Y39.99%
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 Year29.81%
Revenue Next 2Y14.54%
Revenue Next 3Y10.69%
Revenue Next 5Y7.46%
EBIT growth 1Y-139.1%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year319.53%
EBIT Next 3Y81.11%
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 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.
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%.