INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - NYSE:IP - US4601461035 - Common Stock
36.32 USD
-0.24 (-0.66%)
36.33 USD
+0.01 (+0.03%)
We assign a fundamental rating of 3 out of 10 to IP. 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. 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 Return On Assets of -3.15%. This is in the lower half of the industry: IP underperforms 77.27% of its industry peers.
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.
In the last couple of years the Operating Margin of IP has declined.
With an excellent Gross Margin value of 28.96%, IP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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
IP has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IP has a worse debt to assets ratio.
2.2 Solvency
IP has an Altman-Z score of 1.40. This is a bad value and indicates that IP is not financially healthy and even has some risk of bankruptcy.
IP's Altman-Z score of 1.40 is in line compared to the rest of the industry. IP outperforms 40.91% of its industry peers.
IP has a Debt/Equity ratio of 0.52. This is a neutral value indicating IP is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.52, IP belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACCN/A
WACC9.04%
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.
IP's Current ratio of 1.31 is in line compared to the rest of the industry. IP outperforms 54.55% of its industry peers.
A Quick Ratio of 1.04 indicates that IP should not have too much problems paying its short term obligations.
IP's Quick ratio of 1.04 is fine compared to the rest of the industry. IP outperforms 63.64% of its industry peers.
| 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.
The earnings per share for IP have been decreasing by -23.81% on average. This is quite bad
Looking at the last year, IP shows a very strong growth in Revenue. The Revenue has grown by 25.91%.
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-57.05%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
EPS Next 5Y24.23%
Revenue Next Year31.52%
Revenue Next 2Y15.8%
Revenue Next 3Y11.41%
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.
IP is valuated correctly with a Price/Forward Earnings ratio of 15.03.
63.64% of the companies in the same industry are cheaper than IP, based on the Price/Forward Earnings ratio.
IP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.03 |
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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
IP's earnings are expected to grow with 43.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.6%
EPS Next 3Y43.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.06%, IP is a good candidate for dividend investing.
The stock price of IP dropped by -23.62% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
IP's Dividend Yield is rather good when compared to the industry average which is at 3.54. IP pays more dividend than 86.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, IP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
5.2 History
The dividend of IP decreases each year by -1.57%.
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)-1.57%
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 2Y45.6%
EPS Next 3Y43.41%
36.32
-0.24 (-0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99%
Inst Owner Change-0.39%
Ins Owners0.15%
Ins Owner Change0.28%
Market Cap19.18B
Revenue(TTM)23.47B
Net Income(TTM)-1279000000
Analysts77.27
Price Target53.1 (46.2%)
Short Float %10.33%
Short Ratio14.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.06% |
Yearly Dividend1.86
Dividend Growth(5Y)-1.57%
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)-4.61%
PT rev (3m)-6.1%
EPS NQ rev (1m)-15.06%
EPS NQ rev (3m)-30.86%
EPS NY rev (1m)-8.2%
EPS NY rev (3m)-26.42%
Revenue NQ rev (1m)-3.85%
Revenue NQ rev (3m)-4.7%
Revenue NY rev (1m)-3.22%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.03 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | 16.11 | ||
| P/B | 1.11 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)-0.02
EYN/A
EPS(NY)2.42
Fwd EY6.65%
FCF(TTM)-0.52
FCFYN/A
OCF(TTM)2.25
OCFY6.21%
SpS44.45
BVpS32.8
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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.51 | ||
| 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 | 1.4 |
F-Score5
WACC9.04%
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-57.05%
EPS Next 2Y45.6%
EPS Next 3Y43.41%
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 Year31.52%
Revenue Next 2Y15.8%
Revenue Next 3Y11.41%
Revenue Next 5Y7.46%
EBIT growth 1Y-139.1%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year369.37%
EBIT Next 3Y89.16%
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 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 3 / 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%.