INTERNATIONAL PAPER CO (IP)
US4601461035 - Common Stock
Overall IP gets a fundamental rating of 4 out of 10. We evaluated IP against 24 industry peers in the Containers & Packaging industry. The financial health of IP is average, but there are quite some concerns on its profitability. IP does not seem to be growing, but still is valued expensively.
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.
1.2 Ratios
With a Return On Assets value of 1.81%, IP is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
IP has a worse Return On Equity (4.87%) than 60.87% of its industry peers.
IP's Return On Invested Capital of 1.74% is on the low side compared to the rest of the industry. IP is outperformed by 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IP is significantly below the industry average of 382233.08%.
| Industry Rank | Sector 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%
1.3 Margins
IP's Profit Margin of 2.25% is on the low side compared to the rest of the industry. IP is outperformed by 60.87% of its industry peers.
In the last couple of years the Profit Margin of IP has declined.
With a Operating Margin value of 2.08%, IP is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of IP has declined.
IP has a Gross Margin of 28.07%. This is in the better half of the industry: IP outperforms 73.91% of its industry peers.
In the last couple of years the Gross Margin of IP has declined.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, IP has less shares outstanding
Compared to 1 year ago, IP has a worse debt to assets ratio.
2.2 Solvency
IP has an Altman-Z score of 2.42. 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.
The Altman-Z score of IP (2.42) is better than 78.26% of its industry peers.
IP has a debt to FCF ratio of 6.90. This is a slightly negative value and a sign of low solvency as IP would need 6.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.90, IP is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that IP is somewhat dependend on debt financing.
IP's Debt to Equity ratio of 0.62 is fine compared to the rest of the industry. IP outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 6.9 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.2
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.53 indicates that IP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, IP is in line with its industry, outperforming 43.48% of the companies in the same industry.
IP has a Quick Ratio of 1.11. 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 Quick ratio of 1.11 is fine compared to the rest of the industry. IP outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for IP have decreased strongly by -40.30% in the last year.
The earnings per share for IP have been decreasing by -16.48% on average. This is quite bad
Looking at the last year, IP shows a decrease in Revenue. The Revenue has decreased by -4.15% in the last year.
The Revenue has been decreasing by -4.09% on average over the past years.
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
IP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.19% yearly.
The Revenue is expected to grow by 2.52% on average over the next years.
EPS Next Y-43.11%
EPS Next 2Y19.26%
EPS Next 3Y23.33%
EPS Next 5Y9.19%
Revenue Next Year-0.98%
Revenue Next 2Y1.88%
Revenue Next 3Y2.37%
Revenue Next 5Y2.52%
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
With a Price/Earnings ratio of 37.94, IP can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Earnings ratio of 29.56, IP is valued a bit more expensive.
IP is valuated rather expensively with a Price/Forward Earnings ratio of 19.30.
IP's Price/Forward Earnings 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.20, IP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IP is valued a bit more expensive than 60.87% of the companies in the same industry.
IP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.64 | ||
| EV/EBITDA | 13.29 |
4.3 Compensation for Growth
IP's earnings are expected to grow with 23.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.26%
EPS Next 3Y23.33%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.83, IP pays a better dividend. On top of this IP pays more dividend than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.19, IP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of IP decreases each year by -1.01%.
IP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IP decreased recently.
Dividend Growth(5Y)-1.01%
Div Incr Years0
Div Non Decr Years1
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 2Y19.26%
EPS Next 3Y23.33%
INTERNATIONAL PAPER CO
NYSE:IP (11/25/2024, 7:54:30 PM)
After market: 59.57 0 (0%)59.57
+0.25 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 19.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 4.87% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.08% | ||
| PM (TTM) | 2.25% | ||
| GM | 28.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-40.3%
EPS 3Y-8.15%
EPS 5Y
EPS Q2Q%
EPS Next Y-43.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.15%
Revenue growth 3Y2.5%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y