International Paper Company logged a -0.6% change during today's morning session, and is now trading at a price of $31.14 per share.
As of April 2023, the company's 50-day average price was $31.78. International Paper Company produces renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. Based in Memphis, TN, the large-cap Basic Materials company has 39,000 full time employees. International Paper Company has offered a 5.9% dividend yield over the last 12 months.
A Deteriorating Pattern of Cash Flows With a Downwards Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $22,376 | $20,580 | $19,363 | $21,161 |
| Gross Margins | 31.8% | 30.2% | 28.6% | 28.4% |
| Operating Margins | 10.8% | 8.2% | 7.6% | 8.3% |
| Net Margins | 5.47% | 2.34% | 9.05% | 7.11% |
| Net Income (MM) | $1,225 | $482 | $1,752 | $1,504 |
| Net Interest Expense (MM) | -491 | -444 | -337 | -325 |
| Net Interest Expense (MM) | -$491 | -$444 | -$337 | -$325 |
| Depreciation & Amort. (MM) | -$1,306 | -$1,287 | -$1,210 | -$1,040 |
| Earnings Per Share | $3.07 | $1.22 | $4.47 | $4.57 |
| EPS Growth | n/a | -60.26% | 266.39% | 2.24% |
| Diluted Shares (MM) | 399 | 396 | 392 | 347 |
| Free Cash Flow (MM) | $2,334 | $2,312 | $1,481 | $1,243 |
| Capital Expenditures (MM) | -$1,276 | -$751 | -$549 | -$931 |
| Net Current Assets (MM) | -$19,114 | -$12,614 | -$9,065 | -$8,673 |
| Current Ratio | 0.77 | 1.36 | 1.71 | 1.35 |
| Long Term Debt (MM) | $11,682 | $10,156 | $5,383 | $4,816 |
| Net Debt / EBITDA | 4.26 | 5.62 | 1.23 | 1.81 |
International Paper Company has slimmer gross margins than its peers, a deteriorating pattern of cash flows, and a highly leveraged balance sheet. On the other hand, the company has a strong EPS growth trend working in its favor. Furthermore, International Paper Company has stable revenues and decreasing reinvestment in the business, weak operating margings with a negative growth trend, and just enough current assets to cover current liabilities.
International Paper Company Is Potentially Undervalued and Trades Below Its Graham Number:
International Paper Company has a trailing twelve month P/E ratio of 7.0, compared to an average of 10.03 for the Basic Materials sector. Based on its EPS guidance of $2.36, the company has a forward P/E ratio of 13.5. The -5.1% compound average growth rate of International Paper Company's historical and projected earnings per share yields a PEG ratio of -1.36. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing International Paper Company in terms of its equity because its P/B ratio is 1.29 while the sector average is 2.08. The company's shares are currently trading -26.8% below their Graham number.
Analysts Give International Paper Company an Average Rating of Hold:
The 9 analysts following International Paper Company have set target prices ranging from $24.0 to $42.0 per share, for an average of $32.78 with a hold rating. As of April 2023, the company is trading -3.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
International Paper Company has an average amount of shares sold short because 3.5% of the company's shares are sold short. Institutions own 88.2% of the company's shares, and the insider ownership rate stands at 0.4%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 12% stake in the company is worth $1,314,887,097.
