INTERNATIONAL PAPER CO (IP) Stock Fundamental Analysis
USA - NYSE:IP - US4601461035 - Common Stock
46.94 USD
+0.7 (+1.51%)
47.23 USD
+0.29 (+0.62%)
Overall IP gets a fundamental rating of 4 out of 10. We evaluated IP against 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
In the past year IP was profitable.
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
The Return On Assets of IP (-0.06%) is worse than 68.18% of its industry peers.
Looking at the Return On Equity, with a value of -0.15%, IP is doing worse than 68.18% of the companies in the same industry.
IP has a Return On Invested Capital of 0.66%. This is in the lower half of the industry: IP underperforms 77.27% of its industry peers.
IP had an Average Return On Invested Capital over the past 3 years of 4.45%. This is below the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.15% | ||
| ROIC | 0.66% |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)4.45%
ROIC(5y)4.83%
1.3 Margins
In the last couple of years the Profit Margin of IP has declined.
With a Operating Margin value of 1.25%, IP is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
IP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.30%, IP is in the better half of the industry, outperforming 77.27% 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 | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.3% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IP is destroying value.
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 1.53. 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 1.53 is in line compared to the rest of the industry. IP outperforms 40.91% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that IP is somewhat dependend on debt financing.
IP has a better Debt to Equity ratio (0.52) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.53 |
ROIC/WACC0.08
WACC8.37%
2.3 Liquidity
IP has a Current Ratio of 1.33. 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 1.33 is in line compared to the rest of the industry. IP outperforms 59.09% of its industry peers.
A Quick Ratio of 0.96 indicates that IP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, IP is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for IP have decreased strongly by -51.98% 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 quite strong growth in Revenue. The Revenue has grown by 18.13% in the last year.
Measured over the past years, IP shows a decrease in Revenue. The Revenue has been decreasing by -3.61% on average per year.
EPS 1Y (TTM)-51.98%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-63.64%
Revenue 1Y (TTM)18.13%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%42.94%
3.2 Future
The Earnings Per Share is expected to grow by 28.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
EPS Next Y57.2%
EPS Next 2Y65.84%
EPS Next 3Y53.02%
EPS Next 5Y28.45%
Revenue Next Year39.81%
Revenue Next 2Y20.65%
Revenue Next 3Y14.69%
Revenue Next 5Y9.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 55.22, IP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, IP is valued a bit more expensive than 77.27% of the companies in the same industry.
IP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 14.97, the valuation of IP can be described as correct.
IP's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IP to the average of the S&P500 Index (22.70), we can say IP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.22 | ||
| Fwd PE | 14.97 |
4.2 Price Multiples
77.27% of the companies in the same industry are cheaper than IP, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.05 |
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 53.02% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y65.84%
EPS Next 3Y53.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, IP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, IP pays a better dividend. On top of this IP pays more dividend than 86.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, IP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
The dividend of IP decreases each year by -1.58%.
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)-1.58%
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-3000%
EPS Next 2Y65.84%
EPS Next 3Y53.02%
46.94
+0.7 (+1.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners94.34%
Inst Owner Change-6.5%
Ins Owners0.16%
Ins Owner Change1.47%
Market Cap24.78B
Analysts74.55
Price Target55.67 (18.6%)
Short Float %9.48%
Short Ratio11.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1.85
Dividend Growth(5Y)-1.58%
DP-3000%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-46.11%
Min EPS beat(2)-52.48%
Max EPS beat(2)-39.75%
EPS beat(4)1
Avg EPS beat(4)-51.94%
Min EPS beat(4)-180.91%
Max EPS beat(4)65.36%
EPS beat(8)4
Avg EPS beat(8)-22.61%
EPS beat(12)7
Avg EPS beat(12)-9.35%
EPS beat(16)9
Avg EPS beat(16)-5.11%
Revenue beat(2)0
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-7.84%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-4.83%
Min Revenue beat(4)-7.84%
Max Revenue beat(4)-2.04%
Revenue beat(8)0
Avg Revenue beat(8)-4.48%
Revenue beat(12)0
Avg Revenue beat(12)-4.25%
Revenue beat(16)1
Avg Revenue beat(16)-4.57%
PT rev (1m)0.25%
PT rev (3m)-0.07%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-24.92%
EPS NY rev (1m)-19.92%
EPS NY rev (3m)-19.8%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.22 | ||
| Fwd PE | 14.97 | ||
| P/S | 1.13 | ||
| P/FCF | N/A | ||
| P/OCF | 22.41 | ||
| P/B | 1.33 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 16.05 |
EPS(TTM)0.85
EY1.81%
EPS(NY)3.14
Fwd EY6.68%
FCF(TTM)-0.22
FCFYN/A
OCF(TTM)2.09
OCFY4.46%
SpS41.54
BVpS35.26
TBVpS12.65
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.06% | ||
| ROE | -0.15% | ||
| ROCE | 0.78% | ||
| ROIC | 0.66% | ||
| ROICexc | 0.68% | ||
| ROICexgc | 1.04% | ||
| OM | 1.25% | ||
| PM (TTM) | N/A | ||
| GM | 28.3% | ||
| FCFM | N/A |
ROA(3y)3.32%
ROA(5y)3.68%
ROE(3y)9.32%
ROE(5y)10.68%
ROIC(3y)4.45%
ROIC(5y)4.83%
ROICexc(3y)4.69%
ROICexc(5y)5.36%
ROICexgc(3y)5.71%
ROICexgc(5y)6.5%
ROCE(3y)5.27%
ROCE(5y)5.71%
ROICexcg growth 3Y-27.83%
ROICexcg growth 5Y-21.92%
ROICexc growth 3Y-28.5%
ROICexc growth 5Y-22.76%
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.64 | ||
| Cap/Depr | 67.36% | ||
| Cap/Sales | 5.58% | ||
| Interest Coverage | 0.63 | ||
| Cash Conversion | 52.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 1.53 |
F-Score5
WACC8.37%
ROIC/WACC0.08
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)-51.98%
EPS 3Y-33.91%
EPS 5Y-23.81%
EPS Q2Q%-63.64%
EPS Next Y57.2%
EPS Next 2Y65.84%
EPS Next 3Y53.02%
EPS Next 5Y28.45%
Revenue 1Y (TTM)18.13%
Revenue growth 3Y-1.3%
Revenue growth 5Y-3.61%
Sales Q2Q%42.94%
Revenue Next Year39.81%
Revenue Next 2Y20.65%
Revenue Next 3Y14.69%
Revenue Next 5Y9.1%
EBIT growth 1Y-46.8%
EBIT growth 3Y-31.27%
EBIT growth 5Y-27.79%
EBIT Next Year385.76%
EBIT Next 3Y89%
EBIT Next 5Y47.98%
FCF growth 1Y-113.1%
FCF growth 3Y-20.04%
FCF growth 5Y-20.16%
OCF growth 1Y-46.54%
OCF growth 3Y-6.15%
OCF growth 5Y-14.21%