International Paper Stock Analysis, Valuation (NYSE:IP)

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$55.25 $0.44 (0.79%) IP stock closing price May 23, 2018 (Closing)
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International Paper
Updated on : May 23, 2018
previous close
IP 55.3 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Paper and Paper products
Sector :
Basic Materials
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4%
Operating Profit
Operating Margin:
9.3%
Sector Average:
8.5%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
11.07B
Debt/Equity Ratio:
 1.52
Compared to the industry
Cash Flow
Operating cash flow:
$663M
Net Income:
$729M
Dividend Yield
IP dividend yield:
3.4%
PROS      CONS
ROE
PE Valuation
PS Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
IP PS :
1
Industry PS :
1.4
Sector:   Basic Materials.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
5.5%
Return on Equity:
47.7%
Free Cash Flow Margin:
3.1%
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International Paper Stock Analysis

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Take a look at Amigobulls International Paper stock analysis video. This is our analyst opinion covering the buy and sell arguments for IP stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

International Paper Co Stock Rating 3.2/5

Amigobulls IP stock analysis uses latest quarter 2018 Q1 financial data like International Paper revenue growth, profit margins and cash flows. International Paper valuation forms a crucial part of our stock analysis. International Paper stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy IP stock?

  • The price to earnings multiple of 14 is attractive when compared with the industry average PE ratio of 19.1.
  • The lower PS ratio 1 for IP stock versus Paper and Paper products industry average of 1.4 is a positive for the company.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for International Paper at 47.7%.

Should you sell IP stock?

  • The company saw an average annual sales decline of -4% in sales over the last 5 years.
  • International Paper has a debt/equity ratio of  1.52, which is worse than the average in the Basic Materials sector.

Comments on this video and International Paper stock

Investors can make use of the Amigobulls International Paper stock analysis to ascertain how IP stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of IP stock and helps investors in making good buy and sell decision.

Among the financials of the company, International Paper revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about IP stock.