International Paper Co (IP) AI Stock Analysis

• Market Cap: $24.06B
• Dividend Yield: 4.06%
• Average Volume (3M): 3.77M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.82
• Revenue Growth: 18.13%
• EPS Growth: -106.71%
• Country: US
• Employees: 65,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.20
• Shares Outstanding: 527,982,100
• 10 Day Avg. Volume: 3,605,741
• 30 Day Avg. Volume: 3,774,521
• 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: 1.52
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: 17.06
• 1Y Price Target: $55.86
• Price Target Upside: 20.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $50.00 ▲(8.13% Upside)

International Paper Co's overall stock score is driven by significant challenges in financial performance and valuation, with negative net margins and a high P/E ratio. Technical indicators suggest potential bearish momentum. However, strategic progress and improved guidance from the earnings call provide some optimism for future performance.

Positive Factors

Strategic Transformation

International Paper's strategic transformation and 80/20 implementation are expected to enhance operational efficiency and drive long-term profitability, positioning the company for sustained growth.

Market Position in North America

The company's strong market position in North America, driven by strategic wins and cost-out actions, supports revenue growth and competitive advantage in a key region.

Solid Capital Structure

A stable capital structure with a healthy debt-to-equity ratio provides financial resilience, enabling the company to navigate market challenges and invest in growth opportunities.

Negative Factors

Profitability Challenges

Negative net margins and profitability issues highlight operational inefficiencies, which could hinder cash flow generation and long-term financial stability if not addressed.

Cash Flow Constraints

Declining operating cash flow and negative free cash flow indicate financial strain, limiting the company's ability to fund operations and growth initiatives without external financing.

Soft Demand in EMEA

Soft demand in EMEA reflects regional market challenges, potentially impacting revenue and profitability in this segment, necessitating strategic adjustments to mitigate impact.

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 packaging and paper products. Key revenue streams include the production and sale of containerboard and corrugated packaging, which are essential for shipping and protecting goods. The company also produces paper products used in various applications, including printing and writing papers. Strategic partnerships with major retailers and manufacturers enhance its market presence and customer base. Additionally, International Paper benefits from economies of scale in production and a focus on sustainability, which attracts environmentally-conscious customers and reduces operational costs.

International Paper Co Financial Statement Overview

Summary

International Paper Co faces significant challenges with profitability and cash flow generation in the TTM, despite a solid balance sheet. Revenue volatility and negative net margins pose risks, but a stable capital structure could provide resilience. Addressing operational inefficiencies and restoring profitability are crucial for financial health improvement.

Income Statement

The company's revenue has shown volatility, with a decrease from 2022 to 2024 and a slight recovery in the TTM. Gross profit margin in the TTM is around 28.3%, showing some strength in cost management. However, the net profit margin is negative in the TTM due to a net loss, indicating profitability challenges. EBIT and EBITDA margins also show a downward trend compared to previous years, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.56 in the TTM, which is reasonable for the industry. Return on Equity (ROE) is negative in the TTM due to net losses, but historical data shows positive ROE. The equity ratio in the TTM is about 43.9%, indicating a solid capital structure with a healthy proportion of equity to total assets.

Cash Flow

The cash flow statement reflects challenges with negative free cash flow in the TTM. Operating cash flow is positive but has declined, impacting the company's ability to generate cash. The operating cash flow to net income ratio is unfavorable due to negative net income. Past periods showed positive free cash flow, indicating potential recovery if operational issues are addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.93B	18.62B	18.92B	21.16B	19.36B	17.57B
Gross Profit	6.21B	5.24B	5.29B	6.02B	5.53B	5.23B
EBITDA	2.14B	1.88B	2.23B	2.95B	2.64B	2.21B
Net Income	-27.00M	557.00M	288.00M	1.50B	1.75B	482.00M
Balance Sheet
Total Assets	42.38B	22.80B	23.26B	23.94B	25.24B	31.72B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.17B	1.11B	804.00M	1.54B	5.32B
Total Debt	10.39B	5.85B	5.91B	5.86B	5.82B	12.54B
Total Liabilities	23.76B	14.63B	14.91B	15.44B	16.16B	23.85B
Stockholders Equity	18.62B	8.17B	8.36B	8.50B	9.08B	7.85B
Cash Flow
Free Cash Flow	-118.00M	757.00M	692.00M	1.24B	1.48B	2.31B
Operating Cash Flow	1.11B	1.68B	1.83B	2.17B	2.03B	3.06B
Investing Cash Flow	-400.00M	-808.00M	-668.00M	-608.00M	6.05B	-269.00M
Financing Cash Flow	-663.00M	-775.00M	-866.00M	-2.05B	-7.38B	-2.70B

International Paper Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IP, the sentiment is Negative. The current price of 46.24 is below the 20-day moving average (MA) of 47.79, below the 50-day MA of 48.99, and below the 200-day MA of 50.20, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IP.

International Paper Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKG	77 Outperform	19.06B	21.14	19.53%	2.34%	8.98%	25.81%
CCK	72 Outperform	11.11B	20.04	19.23%	1.08%	2.07%	32.37%
BALL	68 Neutral	13.58B	23.30	68.37%	1.60%	-3.12%	0.00%
AMCR	63 Neutral	19.09B	25.87	4.36%	6.16%	10.03%	-28.33%
SW	63 Neutral	23.15B	67.27	0.00%	3.59%	0.00%	0.00%
IP	57 Neutral	$24.06B	46.41	-0.20%	4.06%	18.13%	-106.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

International Paper Co Corporate Events

International Paper Completes Divestiture of European Plants

On July 1, 2025, International Paper announced the completion of its divestiture of five European plants to PALM Group. This move was made to satisfy regulatory commitments following its acquisition of DS Smith Plc, as agreed with the European Commission. The sale included plants in France, Portugal, and Spain, and ensures that International Paper has fulfilled its obligations related to the acquisition.