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INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis

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

56.35  +0.1 (+0.18%)

Premarket: 56.07 -0.28 (-0.5%)

Fundamental Rating

3

Taking everything into account, IP scores 3 out of 10 in our fundamental rating. IP was compared to 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 is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year IP was profitable.
In the past year IP had a positive cash flow from operations.
IP had positive earnings in 4 of the past 5 years.
IP had a positive operating cash flow in 4 of the past 5 years.
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

The Return On Assets of IP (1.81%) is worse than 60.87% of its industry peers.
IP's Return On Equity of 4.87% is on the low side compared to the rest of the industry. IP is outperformed by 65.22% of its industry peers.
IP has a Return On Invested Capital of 1.74%. This is amonst the worse of the industry: IP underperforms 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IP is in line with the industry average of 7.65%.
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

The Profit Margin of IP (2.25%) is worse than 60.87% of its industry peers.
IP's Profit Margin has declined in the last couple of years.
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.
IP has a Gross Margin of 28.07%. This is in the better half of the industry: IP outperforms 78.26% of its industry peers.
In the last couple of years the Gross Margin of IP has declined.
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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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IP is destroying value.
IP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

An Altman-Z score of 2.79 indicates that IP is not a great score, but indicates only limited risk for bankruptcy at the moment.
IP's Altman-Z score of 2.79 is amongst the best of the industry. IP outperforms 82.61% 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 has a Debt to FCF ratio of 6.90. This is amongst the best in the industry. IP outperforms 86.96% of its industry peers.
IP has a Debt/Equity ratio of 0.62. This is a neutral value indicating 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 2.79
ROIC/WACC0.2
WACC8.63%
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

A Current Ratio of 1.53 indicates that IP should not have too much problems paying its short term obligations.
IP's Current ratio of 1.53 is in line compared to the rest of the industry. IP outperforms 52.17% of its industry peers.
A Quick Ratio of 1.11 indicates that IP should not have too much problems paying its short term obligations.
IP has a Quick ratio of 1.11. This is in the better half of the industry: IP outperforms 69.57% 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 -47.47%.
Measured over the past years, IP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.81% on average per year.
EPS 1Y (TTM)-47.47%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-104.88%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.46%

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 34.66% on average per year.
Based on estimates for the next years, IP will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y139.61%
EPS Next 2Y76.68%
EPS Next 3Y48.44%
EPS Next 5Y34.66%
Revenue Next Year45.19%
Revenue Next 2Y23.54%
Revenue Next 3Y16.22%
Revenue Next 5Y4.2%

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.
IP Yearly Revenue VS EstimatesIP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
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

IP is valuated quite expensively with a Price/Earnings ratio of 49.43.
Compared to the rest of the industry, the Price/Earnings ratio of IP indicates a slightly more expensive valuation: IP is more expensive than 78.26% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of IP to the average of the S&P500 Index (29.98), we can say IP is valued expensively.
The Price/Forward Earnings ratio is 20.63, which indicates a rather expensive current valuation of IP.
IP's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IP is more expensive than 78.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IP to the average of the S&P500 Index (22.66), we can say IP is valued inline with the index average.
Industry RankSector Rank
PE 49.43
Fwd PE 20.63
IP Price Earnings VS Forward Price EarningsIP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

IP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. IP is more expensive than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IP is valued a bit more expensive than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 36.82
EV/EBITDA 18.13
IP Per share dataIP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as IP's earnings are expected to grow with 48.44% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y76.68%
EPS Next 3Y48.44%

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3

5. Dividend

5.1 Amount

IP has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.14, 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 2.30.
Industry RankSector Rank
Dividend Yield 3.29%

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.
IP has decreased its dividend 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 2025 0.5 1 1.5 2

5.3 Sustainability

IP pays out 152.86% of its income as dividend. This is not a sustainable payout ratio.
DP152.86%
EPS Next 2Y76.68%
EPS Next 3Y48.44%
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 (2/28/2025, 8:04:00 PM)

Premarket: 56.07 -0.28 (-0.5%)

56.35

+0.1 (+0.18%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)04-30 2025-04-30/bmo
Inst Owners76.56%
Inst Owner Change9.52%
Ins Owners0.14%
Ins Owner Change2.47%
Market Cap29.71B
Analysts75.56
Price Target59.32 (5.27%)
Short Float %9.13%
Short Ratio5.52
Dividend
Industry RankSector Rank
Dividend Yield 3.29%
Yearly Dividend1.84
Dividend Growth(5Y)-1.01%
DP152.86%
Div Incr Years0
Div Non Decr Years2
Ex-Date02-24 2025-02-24 (0.4625)
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)1.29%
PT rev (3m)1.47%
EPS NQ rev (1m)-48.72%
EPS NQ rev (3m)-46.67%
EPS NY rev (1m)0.32%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.01%
Valuation
Industry RankSector Rank
PE 49.43
Fwd PE 20.63
P/S 1.59
P/FCF 36.82
P/OCF 16.76
P/B 3.44
P/tB 5.47
EV/EBITDA 18.13
EPS(TTM)1.14
EY2.02%
EPS(NY)2.73
Fwd EY4.85%
FCF(TTM)1.53
FCFY2.72%
OCF(TTM)3.36
OCFY5.97%
SpS35.35
BVpS16.37
TBVpS10.31
PEG (NY)0.35
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 2.79
F-Score7
WACC8.63%
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)-47.47%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-104.88%
EPS Next Y139.61%
EPS Next 2Y76.68%
EPS Next 3Y48.44%
EPS Next 5Y34.66%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-0.46%
Revenue Next Year45.19%
Revenue Next 2Y23.54%
Revenue Next 3Y16.22%
Revenue Next 5Y4.2%
EBIT growth 1Y-71.16%
EBIT growth 3Y-17.4%
EBIT growth 5Y-23.68%
EBIT Next Year68.23%
EBIT Next 3Y54.28%
EBIT Next 5Y23.65%
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%