International Paper Co (IP) AI Stock Analysis

• Market Cap: $21.06B
• Dividend Yield: 4.69%
• Average Volume (3M): 4.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 25.91%
• EPS Growth: -316.17%
• Country: US
• Employees: 65,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): -0.43
• Shares Outstanding: 528,038,300
• 10 Day Avg. Volume: 3,601,195
• 30 Day Avg. Volume: 4,347,095
• PEG Ratio: 0.36
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 24.68
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 16.04
• 1Y Price Target: $48.44
• Price Target Upside: 21.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $39.00 ▼(-2.23% Downside)

International Paper Co's overall stock score reflects challenges in financial performance and valuation, with negative earnings and cash flow issues being significant concerns. Technical indicators suggest a bearish trend, although the company is making progress in its transformation strategy, as highlighted in the earnings call. The attractive dividend yield provides some support, but macroeconomic headwinds and market conditions remain challenging.

Positive Factors

Transformation Strategy

International Paper's transformation strategy is yielding significant EBITDA growth, indicating effective cost management and strategic focus, which should enhance long-term profitability.

Market Share Gains

Market share gains in North America suggest competitive advantages and customer loyalty, positioning the company for sustained revenue growth in a key market.

Strategic Cost Initiatives

Strategic cost initiatives, including mill closures and business exits, are enhancing operational efficiency and margin expansion, supporting long-term financial health.

Negative Factors

Negative Profitability Metrics

Negative profitability metrics indicate challenges in cost management and market conditions, potentially hindering sustainable earnings growth and financial stability.

Cash Flow Concerns

Cash flow issues, with negative free cash flow, suggest difficulties in converting income into cash, impacting liquidity and investment capacity for future growth.

Challenging Macro Conditions

Challenging macroeconomic conditions in key regions may suppress demand and pricing power, affecting revenue and profitability in the medium term.

International Paper Co Business Overview & Revenue Model

Company Description

International Paper Company operates as a packaging company primarily in United States, the Middle East, Europe, Africa, Pacific Rim, Asia, and rest of the Americas. It operates through two segments: Industrial Packaging and Global Cellulose Fibers. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. The Global Cellulose Fibers segment provides fluff, market, and specialty pulps that are used in absorbent hygiene products, such as baby diapers, feminine care, adult incontinence, and other non-woven products; tissue and paper products; and non-absorbent end applications, including textiles, filtration, construction material, paints and coatings, reinforced plastics, and other applications. It sells its products directly to end users and converters, as well as through agents, resellers, and paper distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

How the Company Makes Money

International Paper generates revenue primarily through the sale of its products across its three segments. The Industrial Packaging segment, which includes containerboard and corrugated packaging, accounts for a significant portion of the company's revenue, driven by demand from various industries such as e-commerce, food and beverage, and consumer goods. The Global Cellulose Fibers segment contributes through the production of absorbent materials used in personal care products, while the Printing Papers segment generates income through the sale of paper products for commercial printing and publishing. Additionally, International Paper benefits from strategic partnerships and long-term contracts with major customers that provide stable revenue streams. The company's commitment to sustainability and innovation also enhances its market position, enabling it to capitalize on growing demand for eco-friendly packaging solutions.

International Paper Co Financial Statement Overview

Summary

International Paper Co faces challenges in profitability and cash flow management, despite showing revenue growth. The balance sheet remains relatively stable, but the negative return on equity and cash flow issues highlight areas needing improvement. Strategic focus on cost management and cash flow optimization could enhance financial performance.

Income Statement

International Paper Co's income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 7%, but this is overshadowed by negative profitability metrics, including a net profit margin of -5.45% and an EBIT margin of -1.91%. The gross profit margin remains stable at around 28.96%, but the negative net income and EBIT suggest challenges in managing costs or market conditions.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.60, indicating a manageable level of leverage. However, the return on equity is negative at -8.23%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is relatively healthy, suggesting a solid asset base.

Cash Flow

Cash flow analysis reveals concerns, with a negative free cash flow and a free cash flow to net income ratio of -23.28%. While operating cash flow remains positive, the low operating cash flow to net income ratio of 0.15 indicates potential issues in converting income into cash. The significant growth in free cash flow is a positive sign, but sustainability is uncertain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.47B	18.62B	18.92B	21.16B	19.36B	17.57B
Gross Profit	6.80B	5.24B	3.85B	6.02B	5.53B	4.18B
EBITDA	2.12B	1.88B	2.27B	2.95B	2.64B	2.06B
Net Income	-1.28B	557.00M	302.00M	1.50B	1.75B	230.00M
Balance Sheet
Total Assets	40.57B	22.80B	23.26B	23.94B	25.24B	31.72B
Cash, Cash Equivalents and Short-Term Investments	995.00M	1.17B	1.11B	804.00M	1.54B	5.32B
Total Debt	10.41B	5.85B	5.91B	5.86B	5.82B	12.54B
Total Liabilities	23.25B	14.63B	14.91B	15.44B	16.16B	23.85B
Stockholders Equity	17.32B	8.17B	8.36B	8.50B	9.08B	7.85B
Cash Flow
Free Cash Flow	-277.00M	757.00M	692.00M	1.24B	1.48B	2.31B
Operating Cash Flow	1.19B	1.68B	1.83B	2.17B	2.03B	3.06B
Investing Cash Flow	-652.00M	-808.00M	-668.00M	-608.00M	6.05B	-269.00M
Financing Cash Flow	-742.00M	-775.00M	-866.00M	-2.05B	-7.38B	-2.70B

International Paper Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IP, the sentiment is Neutral. The current price of 39.89 is above the 20-day moving average (MA) of 38.87, above the 50-day MA of 39.83, and below the 200-day MA of 45.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IP.

International Paper Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKG	76 Outperform	$18.80B	21.12	19.68%	2.42%	7.30%	15.31%
AMCR	73 Outperform	$19.17B	24.31	7.44%	6.20%	28.41%	-35.50%
CCK	73 Outperform	$11.87B	12.73	34.10%	1.01%	2.94%	893.70%
SW	69 Neutral	$20.17B	27.13	4.11%	4.51%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALL	59 Neutral	$14.11B	19.70	11.74%	1.53%	2.87%	―
IP	49 Neutral	$21.06B	-15.29	-4.65%	4.69%	25.91%	-316.17%

International Paper Co Corporate Events

International Paper Co Awaits Final Deal Approvals

On August 20, 2025, International Paper Co. entered into a Securities Purchase Agreement to sell its Global Cellulose Fibers business to Absorbent Fiber Topco, Inc. The transaction is contingent upon regulatory approvals, including the expiration or early termination of the statutory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. As of September 24, 2025, the Federal Trade Commission granted early termination of the waiting period, but the transaction still awaits other customary closing conditions and approvals.