INTERNATIONAL PAPER CO (IP)
US4601461035 - Common Stock
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. While IP seems to be doing ok healthwise, 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.
IP had a positive operating cash flow in the past year.
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 worse Return On Assets (1.81%) than 60.87% of its industry peers.
IP has a Return On Equity of 4.87%. This is in the lower half of the industry: IP underperforms 60.87% of its industry peers.
IP has a worse Return On Invested Capital (1.74%) than 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IP is significantly below the industry average of 382233.17%.
| 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 has a Profit Margin of 2.25%. This is in the lower half of the industry: IP underperforms 60.87% of its industry peers.
In the last couple of years the Profit Margin of IP has declined.
Looking at the Operating Margin, with a value of 2.08%, IP is doing worse than 82.61% of the companies in the same industry.
In the last couple of years the Operating Margin of IP has declined.
With a decent Gross Margin value of 28.07%, IP is doing good in the industry, outperforming 73.91% of the companies in the same industry.
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
IP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for IP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.36 indicates that IP is not a great score, but indicates only limited risk for bankruptcy at the moment.
IP has a better Altman-Z score (2.36) than 78.26% 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.
With a decent Debt to FCF ratio value of 6.90, IP is doing good in 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 | 2.36 |
ROIC/WACC0.2
WACC8.73%
2.3 Liquidity
IP has a Current Ratio of 1.53. 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 1.53 is in line compared to the rest of the industry. IP outperforms 47.83% 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'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.
Measured over the past years, IP shows a decrease in Revenue. The Revenue has been decreasing by -4.09% on average per year.
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
The Earnings Per Share is expected to grow by 15.01% on average over the next years. This is quite good.
IP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.57% yearly.
EPS Next Y-40.4%
EPS Next 2Y18.26%
EPS Next 3Y22.35%
EPS Next 5Y15.01%
Revenue Next Year-0.95%
Revenue Next 2Y1.78%
Revenue Next 3Y2.43%
Revenue Next 5Y3.57%
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 35.17, IP can be considered very expensive at the moment.
82.61% of the companies in the same industry are cheaper than IP, based on the Price/Earnings ratio.
IP is valuated rather expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
IP is valuated rather expensively with a Price/Forward Earnings ratio of 18.19.
Based on the Price/Forward Earnings ratio, IP is valued a bit more expensive than 73.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. IP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 18.19 |
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 65.22% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as IP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
IP's earnings are expected to grow with 22.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.26%
EPS Next 3Y22.35%
5. Dividend
5.1 Amount
IP has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, IP pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, IP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of IP decreases each year by -1.01%.
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)-1.01%
Div Incr Years0
Div Non Decr Years2
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 2Y18.26%
EPS Next 3Y22.35%
INTERNATIONAL PAPER CO
NYSE:IP (12/26/2024, 7:19:21 PM)
After market: 55.21 0 (0%)55.21
+0.1 (+0.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.02%
Inst Owner Change11.07%
Ins Owners0.18%
Ins Owner Change-0.54%
Market Cap19.18B
Analysts77.78
Price Target58.51 (5.98%)
Short Float %14.91%
Short Ratio10.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Dividend Growth(5Y)-1.01%
DP152.86%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)12.4%
PT rev (3m)15.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-94.2%
EPS NY rev (1m)4.75%
EPS NY rev (3m)-15.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 18.19 | ||
| P/S | 1.03 | ||
| P/FCF | 23.77 | ||
| P/OCF | 10.82 | ||
| P/B | 2.22 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)1.57
EY2.84%
EPS(NY)3.03
Fwd EY5.5%
FCF(TTM)2.32
FCFY4.21%
OCF(TTM)5.1
OCFY9.24%
SpS53.65
BVpS24.84
TBVpS15.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.36 |
F-Score7
WACC8.73%
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)-40.3%
EPS 3Y-8.15%
EPS 5Y-16.48%
EPS Q2Q%-31.25%
EPS Next Y-40.4%
EPS Next 2Y18.26%
EPS Next 3Y22.35%
EPS Next 5Y15.01%
Revenue 1Y (TTM)-4.15%
Revenue growth 3Y2.5%
Revenue growth 5Y-4.09%
Sales Q2Q%1.58%
Revenue Next Year-0.95%
Revenue Next 2Y1.78%
Revenue Next 3Y2.43%
Revenue Next 5Y3.57%
EBIT growth 1Y-71.16%
EBIT growth 3Y-17.4%
EBIT growth 5Y-23.68%
EBIT Next Year66.09%
EBIT Next 3Y37.22%
EBIT Next 5Y25.64%
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%