Now trading at a price of $37.06, International Paper Company has moved -1.87% so far today. In contrast, the S&P 500 index moved 0.7%. Read below for a basic value analysis of International Paper Company.
International Paper Company shares moved -6.46% over the last 52 weeks, with a high of $48.0 and a low of $29.93. During this time, the stock lagged the S&P 500 index by -2.76%. As of January 2022, the company's 50-day average price is $37.41. The International Paper Company (NYSE: IP) is an American pulp and paper company, the largest such company in the world. The large-cap Industrials company is based in Memphis, TN. International Paper Company has returned a 5.04% dividend yield over the last 12 months.
SOperating Margins Consistently Higher Than the 9.43% Industry Average:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $44,282 | $40,947 | $39,054 | $42,080 |
| Revenue Growth | n/a | -7.53% | -4.62% | 7.75% |
| Gross Margins | 61.18% | 60.63% | 59.76% | 60.79% |
| Gross Margins Growth | n/a | -0.9% | -1.43% | 1.72% |
| Operating Margins | 56.96% | 56.36% | 55.03% | 57.26% |
| Operating Margins Growth | n/a | -1.05% | -2.36% | 4.05% |
| Earnings Per Share | $2.73 | $1.07 | $3.9 | $3.35 |
| EPS Growth | n/a | -60.81% | 264.49% | -14.1% |
| Free Cash Flow (MM) | $2,473 | $2,400 | $1,550 | $1,243 |
| FCF Growth | n/a | -2.95% | -35.42% | -19.81% |
| Capital Expenditures (MM) | $1,137 | $663 | $480 | $931 |
| Net Debt / EBITDA | 7.39 | 10.67 | 2.56 | 3.67 |
International Paper Company Is Reasonably Valued:
Compared to the Industrials sector's average of 20.49, International Paper Company has a trailing twelve month P/E ratio of 7.6 and, according to its EPS guidance of 3.0, an expected P/E ratio of 12.35.
However, International Paper Company is likely undervalued in terms of its equity because its P/B ratio is 1.391 compared to its sector average of 3.78. The company's shares are currently trading -10.04% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 3.11 * 24.26) = $41.2
International Paper Company Is the Subject of Mixed Market Indicators:
9 analysts are following International Paper Company and have set target prices ranging from $32.0 to $44.0 per share. On average, they have given the company a rating of hold. At the current price of $37.06, IP is trading -4.96% away from its average analyst target price of $39.0 per share, implying an analyst consensus of some upside potential for the stock.
