Home Sectors Consumer Cyclical Valuation Now: International Paper Company (NYSE: IP)

Valuation Now: International Paper Company (NYSE: IP)


International Paper Company is part of the packaging and containers industry and trades as part of the consumer cyclical sector. The company CEO is Mark S. Sutton. International Paper Co produces and distributes printing paper, packaging, forest products, and chemical products. The company operates in three segments namely; Industrial Packaging, Printing Papers, and Global Cellulose Fibers.

Previous Intraday Trading Performance:

The IP stock showed a previous change of 1.49% with an open at 47.51 and a close of 47.76. It reached an intraday high of 47.96 and a low of 47.43.

SeekingAlpha:  Dividend Investors: International Paper Is Boring And Beautiful


The stock has a market cap of $19.2b with 401.5m shares outstanding, of which the float is 395.8m shares. Trading volume reached 1,829,121 shares compared to its average volume of 2,684,569 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, International Paper Company shares returned 0.84% and in the past 30 trading days it returned 3.96%. Over three months, it changed 7.96%. In one year it has changed -7.57% and within that year its 52-week high was 59.57 and its 52-week low was 37.55. IP stock is 27.19% above its 52 Week Low.

Our calculations show a 200 day moving average of 46.93 and a 50 day moving average of 46.39. Currently IP stock is trading 1.77% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Dividend Investors: International Paper Is Boring And Beautiful


The last annual fiscal EPS for the company was reported at 4.85 that ended on 31st of December 2018, which according to the previous close, that is a PE of 9.85. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.90. The TTM EPS is 5.34, which comes to a TTM PE of 8.94. Historically, the PE high was 44.20 and the PE low was 7.30. If the stock reached its PE low, that would represent a price of 39.00, which is a decrease of -18.34%.

The dividend per share is currently 2.00, which is a dividend yield of 4.19%. Also, the payout ratio is 37.45%, therefore the dividend is safe according to our calculations. IP stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 49.14, which means it is possibly undervalued and has a margin of safety of 2.81%

Indicators to Watch:

Based on the latest filings, there is 1.40% of insider ownership and 125.20% of institutional ownership. Short-interest is 8,756,248, which is 2.18% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.01. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.58

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 28.98%, return on assets is 5.96%, profit margin is 7.28%, price-to-sales is 1.07 and price-to-book is 2.60.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 6  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.