International Paper Co (IP) AI Stock Analysis

• Market Cap: $20.63B
• Dividend Yield: 4.92%
• Average Volume (3M): 5.40M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 4,106,102
• 30 Day Avg. Volume: 5,403,202
• 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: 1.76
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 5.34
• Enterprise Value/Ebitda: 17.15
• 1Y Price Target: $48.85
• Price Target Upside: 29.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.46
• Revenue Forecast (FY): $24.55B

• Rating: 49 Neutral
• Price Target: $39.00 ▲(3.78% Upside)

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 is experiencing mixed financial performance. While there is positive revenue growth, the company struggles with profitability and cash flow, indicated by negative net profit and EBIT margins, and a negative free cash flow. The balance sheet shows stability with a debt-to-equity ratio of 0.60, but inefficiencies are evident with a negative return on equity.

Income Statement

International Paper Co's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 29%, which is consistent with previous years. However, the company is facing challenges with profitability, as evidenced by a negative net profit margin of -2.79% and a negative EBIT margin. Despite a revenue growth rate of 7% in the TTM, the company has struggled to maintain profitability, which is a concern.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.60 in the TTM, showing improvement from previous years. However, the return on equity is negative at -8.23%, indicating inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated, but the overall asset base appears stable.

Cash Flow

The cash flow statement highlights significant challenges, with a negative free cash flow in the TTM and a free cash flow to net income ratio of -0.23. Although there is a positive free cash flow growth rate of 134.75%, the operating cash flow to net income ratio is low at 0.15, indicating potential liquidity issues.

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	5.29B	6.02B	5.53B	5.23B
EBITDA	2.12B	1.88B	2.23B	2.95B	2.64B	2.21B
Net Income	-1.28B	557.00M	288.00M	1.50B	1.75B	482.00M
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: Negative
• Last Price: 37.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 37.58 is below the 20-day moving average (MA) of 37.99, below the 50-day MA of 41.48, and below the 200-day MA of 46.17, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 41.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.88 is Neutral, 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	74 Outperform	$17.86B	20.07	19.68%	2.59%	7.30%	15.31%
AMCR	73 Outperform	$19.13B	24.25	7.44%	6.32%	28.41%	-35.50%
CCK	73 Outperform	$11.30B	12.12	34.10%	1.10%	2.94%	893.70%
SW	69 Neutral	$18.90B	25.46	4.11%	4.78%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BALL	61 Neutral	$13.14B	18.34	11.74%	1.68%	2.87%	―
IP	49 Neutral	$20.63B	―	-4.65%	4.92%	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.