International Paper Company is part of the consumer cyclical sector and is part of the packaging and containers industry. 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 -0.23% with an open at 43.47 and a close of 42.77. It reached an intraday high of 43.84 and a low of 42.70.
The stock has a market cap of $17.0b with 397.3m shares outstanding, of which the float is 391.6m shares. Trading volume reached 2,732,382 shares compared to its average volume of 3,142,714 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 0.16% and in the past 30 trading days it returned -9.40%. Over three months, it changed -9.08%. In one year it has changed -18.27% and within that year its 52-week high was 59.57 and its 52-week low was 37.55. IP stock is 13.90% above its 52 Week Low.
Our calculations show a 200 day moving average of 45.53 and a 50 day moving average of 45.15. Currently IP stock is trading -6.07% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.
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 8.82. 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 8.01. 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 38.98, which is a decrease of -8.86%.
Below was the last reported quarterly diluted earnings per share:
|1st||Qtr of 2019||1.05|
|4th||Qtr of 2018||0.78|
|3rd||Qtr of 2018||1.37|
|2nd||Qtr of 2018||0.97|
|1st||Qtr of 2018||1.74|
The dividend per share is currently 2.00, which is a dividend yield of 4.68%. 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 60.50, which means it is possibly undervalued and has a margin of safety of 29.30%.
Indicators to Watch:
Short-interest was 8,942,169, which was 2.25% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.29. 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 1.56.
Based on last reported financials, the company’s return on equity is 24.31%, return on assets is 5.24%, profit margin is 7.42%, price-to-sales is 0.73 and price-to-book is 2.28.
All scores are out of six:
4 :Valuation Score
2 :Past Performance Score
3 :Financial Strength Score
1 :Future Growth Score
6 :Dividend Score
3 :Overall Score