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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.19
IP's Cash to Debt is ranked lower than
53% of the 276 Companies
in the Global Packaging & Containers industry.

( Industry Median: 0.56 vs. IP: 0.19 )
IP' s 10-Year Cash to Debt Range
Min: 0.04   Max: 0.4
Current: 0.19

0.04
0.4
Equity to Asset 0.26
IP's Equity to Asset is ranked lower than
66% of the 280 Companies
in the Global Packaging & Containers industry.

( Industry Median: 0.52 vs. IP: 0.26 )
IP' s 10-Year Equity to Asset Range
Min: 0.16   Max: 0.37
Current: 0.26

0.16
0.37
F-Score: 6
Z-Score: 1.81
M-Score: -2.60
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 7.52
IP's Operating margin (%) is ranked higher than
71% of the 279 Companies
in the Global Packaging & Containers industry.

( Industry Median: 6.77 vs. IP: 7.52 )
IP' s 10-Year Operating margin (%) Range
Min: -1.57   Max: 12.73
Current: 7.52

-1.57
12.73
Net-margin (%) 4.80
IP's Net-margin (%) is ranked higher than
68% of the 279 Companies
in the Global Packaging & Containers industry.

( Industry Median: 4.18 vs. IP: 4.80 )
IP' s 10-Year Net-margin (%) Range
Min: -5.16   Max: 5.82
Current: 4.8

-5.16
5.82
ROE (%) 17.21
IP's ROE (%) is ranked higher than
93% of the 277 Companies
in the Global Packaging & Containers industry.

( Industry Median: 8.88 vs. IP: 17.21 )
IP' s 10-Year ROE (%) Range
Min: -30.75   Max: 19.89
Current: 17.21

-30.75
19.89
ROA (%) 4.42
IP's ROA (%) is ranked higher than
67% of the 279 Companies
in the Global Packaging & Containers industry.

( Industry Median: 4.23 vs. IP: 4.42 )
IP' s 10-Year ROA (%) Range
Min: -4.76   Max: 4.89
Current: 4.42

-4.76
4.89
ROC (Joel Greenblatt) (%) 12.88
IP's ROC (Joel Greenblatt) (%) is ranked higher than
63% of the 279 Companies
in the Global Packaging & Containers industry.

( Industry Median: 14.45 vs. IP: 12.88 )
IP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -2.8   Max: 18.78
Current: 12.88

-2.8
18.78
Revenue Growth (%) 3.80
IP's Revenue Growth (%) is ranked higher than
62% of the 236 Companies
in the Global Packaging & Containers industry.

( Industry Median: 4.80 vs. IP: 3.80 )
IP' s 10-Year Revenue Growth (%) Range
Min: -10.1   Max: 10.6
Current: 3.8

-10.1
10.6
EBITDA Growth (%) 8.20
IP's EBITDA Growth (%) is ranked higher than
76% of the 216 Companies
in the Global Packaging & Containers industry.

( Industry Median: 3.90 vs. IP: 8.20 )
IP' s 10-Year EBITDA Growth (%) Range
Min: -26.2   Max: 61.2
Current: 8.2

-26.2
61.2
EPS Growth (%) 26.70
IP's EPS Growth (%) is ranked higher than
86% of the 185 Companies
in the Global Packaging & Containers industry.

( Industry Median: 5.60 vs. IP: 26.70 )
IP' s 10-Year EPS Growth (%) Range
Min: -48.9   Max: 114.1
Current: 26.7

-48.9
114.1
» IP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

IP Guru Trades in Q2 2013

Joel Greenblatt 34,874 sh (New)
Paul Tudor Jones 24,600 sh (+134.29%)
Louis Moore Bacon 400,000 sh (+45.45%)
Manning & Napier Advisors, Inc 42,555 sh (+25.55%)
Ray Dalio 131,424 sh (+1.59%)
Daniel Loeb 3,750,000 sh (unchged)
Ken Heebner Sold Out
Jim Simons Sold Out
Mario Gabelli 67,060 sh (-0.3%)
Richard Snow 1,188,782 sh (-0.91%)
Pioneer Investments 1,234,388 sh (-3.41%)
John Burbank 645,892 sh (-4.65%)
Brian Rogers 8,039,636 sh (-4.74%)
Jeremy Grantham 143,600 sh (-19.64%)
PRIMECAP Management 75,000 sh (-25%)
Daniel Loeb 4,500,000 sh (-31.82%)
Steven Cohen 27,675 sh (-92.25%)
» More
Q3 2013

IP Guru Trades in Q3 2013

George Soros 571,403 sh (New)
John Burbank 1,207,316 sh (+86.92%)
Joel Greenblatt 54,753 sh (+57%)
Ray Dalio 138,524 sh (+5.4%)
Manning & Napier Advisors, Inc 44,583 sh (+4.77%)
Jeremy Grantham 144,800 sh (+0.84%)
Signature Select Canadian Fund 160,700 sh (+0.37%)
Richard Snow 1,190,526 sh (+0.15%)
Daniel Loeb 4,500,000 sh (unchged)
Brian Rogers 8,039,636 sh (unchged)
PRIMECAP Management 75,000 sh (unchged)
Paul Tudor Jones Sold Out
Mario Gabelli 66,860 sh (-0.3%)
Daniel Loeb 4,250,000 sh (-5.56%)
Pioneer Investments 1,069,488 sh (-13.36%)
Louis Moore Bacon 250,000 sh (-37.5%)
Steven Cohen 5,682 sh (-79.47%)
» More
Q4 2013

IP Guru Trades in Q4 2013

Paul Tudor Jones 4,100 sh (New)
Jim Simons 234,400 sh (New)
Steven Cohen 294,561 sh (+5084.11%)
Joel Greenblatt 120,558 sh (+120.19%)
Pioneer Investments 1,157,832 sh (+8.26%)
Daniel Loeb 3,000,000 sh (unchged)
Brian Rogers 8,039,636 sh (unchged)
PRIMECAP Management Sold Out
George Soros Sold Out
Richard Snow 1,172,149 sh (-1.54%)
Daniel Loeb 4,000,000 sh (-5.88%)
Mario Gabelli 54,760 sh (-18.1%)
Manning & Napier Advisors, Inc 34,931 sh (-21.65%)
Jeremy Grantham 111,395 sh (-23.07%)
Ray Dalio 93,624 sh (-32.41%)
Louis Moore Bacon 41,000 sh (-83.6%)
John Burbank 44,500 sh (-96.31%)
» More
Q1 2014

IP Guru Trades in Q1 2014

Manning & Napier Advisors, Inc 89,217 sh (+155.41%)
Brian Rogers 8,039,636 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with IP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Burbank 2013-12-31 Reduce -96.31%1.64%$43.1 - $49.49 $ 46.121%44500
George Soros 2013-12-31 Sold Out 0.28%$43.1 - $49.49 $ 46.121%0
Daniel Loeb 2013-12-31 Reduce -5.88%0.28%$43.1 - $49.49 $ 46.121%4000000
Joel Greenblatt 2013-12-31 Add 120.19%0.08%$43.1 - $49.49 $ 46.121%120558
Ray Dalio 2013-12-31 Reduce -32.41%0.02%$43.1 - $49.49 $ 46.121%93624
PRIMECAP Management 2013-12-31 Sold Out $43.1 - $49.49 $ 46.121%0
John Burbank 2013-09-30 Add 86.92%0.79%$45.44 - $50.19 $ 46.12-3%1207316
George Soros 2013-09-30 New Buy0.28%$45.44 - $50.19 $ 46.12-3%571403
Daniel Loeb 2013-09-30 Reduce -5.56%0.25%$45.44 - $50.19 $ 46.12-3%4250000
Joel Greenblatt 2013-09-30 Add 57%0.03%$45.44 - $50.19 $ 46.12-3%54753
Daniel Loeb 2013-06-30 Reduce -31.82%1.85%$42.89 - $48.68 $ 46.120%4500000
Joel Greenblatt 2013-06-30 New Buy0.07%$42.89 - $48.68 $ 46.120%34874
PRIMECAP Management 2013-06-30 Reduce -25%$42.89 - $48.68 $ 46.120%75000
Daniel Loeb 2013-03-31 Add 340%4.48%$39.84 - $47 $ 46.127%6600000
John Burbank 2013-03-31 Reduce -42.61%0.77%$39.84 - $47 $ 46.127%677372
John Hussman 2013-03-31 Sold Out 0.37%$39.84 - $47 $ 46.127%0
Ray Dalio 2013-03-31 Add 20.6%0.01%$39.84 - $47 $ 46.127%129372
Premium More recent guru trades are included for Premium Members only!!
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Preferred stocks of International Paper Co

SymbolPriceYieldDescription
INPAP92.004.35USD 4.00 Cum.Preferred Shares

Guru Investment Theses on International Paper Co

Daniel Loeb Comments on International Paper - Apr 11, 2013

International Paper (IP) is a core position in our portfolio, which we sized up during the First Quarter. IP has a compelling case for ownership buoyed by excellent sector and secular tailwinds.

With a current market capitalization of ~$20 billion, IP is the largest player in the highlyconsolidated North American Containerboard ("NACB") industry, which benefits from

strong pricing power despite flat volumes due to nearly 100% operating rates. In 2009 and again in 2011, IP took on substantial leverage to acquire assets that dramatically increased IP's revenue mix towards NACB. After a complex integration process, this year NACB will generate at least 60% of IP's total EBITDA and 75% of all North American EBITDA. This "new" IP should produce strong and stable free cash flow, allowing increased capital return to shareholders and valuation uplift.

Aided by these important NACB tailwinds, IP has multiple near‐term catalysts. The most immediate should come by the end of this month when the market learns if the industry's latest price increase has been officially sanctioned. Proceeds from post‐merger asset sales combined with IP's robust pro forma free cash flow should complete IP's multi‐year deleveraging, which has reduced debt by ~$10 billion over the last four years. With a cleaner balance sheet and no opportunities for further acquisitions, we believe IP's consistent cash flows will be returned increasingly to shareholders through buybacks and dividend increases. Even using stressed assumptions, IP should generate +$2.00 FCF per share, and we expect the dividend will eventually rise to this level.

Finally, we are always keenly attuned to a company's management team and its incentives. In 2014, IP mandates the retirement of its CEO John Faraci. During his decade‐long tenure as CEO, Faraci has almost single‐handedly consolidated the NACB industry and by the end of this year will have grown IP's revenue by ~20% and EBITDA by more than 50%, while cutting net debt by $5 billion. We expect Faraci to cement his impressive legacy by using new IP's balance sheet to repurchase shares, increase its dividend, and raise its stock price, reflecting the company's newfound strength.

Important Note to Our Investors and Unintended Recipients: Third Point's Quarterly Letters are designed to inform our investors about recent portfolio developments and provide our views of the market environment. Our letters are not investment recommendations for the general public. The legal disclaimer makes clear that we may trade in and out of positions discussed at any time and undertake no duty to update anyone, except to the extent we are required to make filings with the SEC. Investors who choose to take action based on our investment ideas do so at their own risk.

From Daniel Loeb’s first quarter 2013 investor letter.


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Ratios

vs
industry
vs
history
P/E(ttm) 14.80
IP's P/E(ttm) is ranked higher than
68% of the 232 Companies
in the Global Packaging & Containers industry.

( Industry Median: 15.90 vs. IP: 14.80 )
IP' s 10-Year P/E(ttm) Range
Min: 5.37   Max: 71.24
Current: 14.8

5.37
71.24
P/B 2.50
IP's P/B is ranked lower than
60% of the 276 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.41 vs. IP: 2.50 )
IP' s 10-Year P/B Range
Min: 0.42   Max: 3.27
Current: 2.5

0.42
3.27
P/S 0.71
IP's P/S is ranked higher than
61% of the 284 Companies
in the Global Packaging & Containers industry.

( Industry Median: 0.79 vs. IP: 0.71 )
IP' s 10-Year P/S Range
Min: 0.07   Max: 0.96
Current: 0.71

0.07
0.96
PFCF 11.20
IP's PFCF is ranked higher than
79% of the 165 Companies
in the Global Packaging & Containers industry.

( Industry Median: 17.58 vs. IP: 11.20 )
IP' s 10-Year PFCF Range
Min: 0.72   Max: 93.41
Current: 11.2

0.72
93.41
EV-to-EBIT 13.00
IP's EV-to-EBIT is ranked higher than
61% of the 236 Companies
in the Global Packaging & Containers industry.

( Industry Median: 13.68 vs. IP: 13.00 )
IP' s 10-Year EV-to-EBIT Range
Min: 8.6   Max: 302.9
Current: 13

8.6
302.9
PEG 5.20
IP's PEG is ranked lower than
58% of the 161 Companies
in the Global Packaging & Containers industry.

( Industry Median: 2.37 vs. IP: 5.20 )
IP' s 10-Year PEG Range
Min: 0.33   Max: 22.45
Current: 5.2

0.33
22.45
Shiller P/E 35.30
IP's Shiller P/E is ranked lower than
62% of the 123 Companies
in the Global Packaging & Containers industry.

( Industry Median: 21.00 vs. IP: 35.30 )
IP' s 10-Year Shiller P/E Range
Min: 4.54   Max: 936
Current: 35.3

4.54
936

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.82
IP's Dividend Yield is ranked higher than
69% of the 221 Companies
in the Global Packaging & Containers industry.

( Industry Median: 2.21 vs. IP: 2.82 )
IP' s 10-Year Dividend Yield Range
Min: 0.35   Max: 24.45
Current: 2.82

0.35
24.45
Dividend Payout 0.42
IP's Dividend Payout is ranked lower than
51% of the 186 Companies
in the Global Packaging & Containers industry.

( Industry Median: 0.30 vs. IP: 0.42 )
IP' s 10-Year Dividend Payout Range
Min: -0.55   Max: 3.13
Current: 0.42

-0.55
3.13
Dividend growth (3y) 46.20
IP's Dividend growth (3y) is ranked higher than
98% of the 124 Companies
in the Global Packaging & Containers industry.

( Industry Median: 4.90 vs. IP: 46.20 )
IP' s 10-Year Dividend growth (3y) Range
Min: -31.2   Max: 49.6
Current: 46.2

-31.2
49.6
Yield on cost (5-Year) 17.76
IP's Yield on cost (5-Year) is ranked higher than
99% of the 225 Companies
in the Global Packaging & Containers industry.

( Industry Median: 2.27 vs. IP: 17.76 )
IP' s 10-Year Yield on cost (5-Year) Range
Min: 2.22   Max: 155.1
Current: 17.76

2.22
155.1
Share Buyback Rate -1.10
IP's Share Buyback Rate is ranked higher than
73% of the 160 Companies
in the Global Packaging & Containers industry.

( Industry Median: -1.50 vs. IP: -1.10 )
IP' s 10-Year Share Buyback Rate Range
Min: 5.4   Max: -17.7
Current: -1.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 5.00
IP's Price/Tangible Book is ranked lower than
74% of the 254 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.40 vs. IP: 5.00 )
IP' s 10-Year Price/Tangible Book Range
Min: 1.51   Max: 8.81
Current: 5

1.51
8.81
Price/DCF (Projected) 0.80
IP's Price/DCF (Projected) is ranked higher than
75% of the 117 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.24 vs. IP: 0.80 )
IP' s 10-Year Price/DCF (Projected) Range
Min: 0.35   Max: 1.9
Current: 0.8

0.35
1.9
Price/Median PS Value 1.00
IP's Price/Median PS Value is ranked higher than
73% of the 265 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.10 vs. IP: 1.00 )
IP' s 10-Year Price/Median PS Value Range
Min: 0.29   Max: 1.4
Current: 1

0.29
1.4
Price/Peter Lynch Fair Value 0.90
IP's Price/Peter Lynch Fair Value is ranked higher than
74% of the 82 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.48 vs. IP: 0.90 )
IP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.38   Max: 2.71
Current: 0.9

0.38
2.71
Price/Graham Number 1.80
IP's Price/Graham Number is ranked lower than
66% of the 212 Companies
in the Global Packaging & Containers industry.

( Industry Median: 1.09 vs. IP: 1.80 )
IP' s 10-Year Price/Graham Number Range
Min: 0.75   Max: 5.05
Current: 1.8

0.75
5.05
Earnings Yield (Greenblatt) 7.70
IP's Earnings Yield (Greenblatt) is ranked higher than
64% of the 252 Companies
in the Global Packaging & Containers industry.

( Industry Median: 7.20 vs. IP: 7.70 )
IP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 11.7
Current: 7.7

0.3
11.7
Forward Rate of Return (Yacktman) 25.93
IP's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 177 Companies
in the Global Packaging & Containers industry.

( Industry Median: 7.67 vs. IP: 25.93 )
IP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -6.6   Max: 55.6
Current: 25.93

-6.6
55.6

Business Description

Industry: Packaging & Containers » Packaging & Containers
Compare:SON, BMBLY, AMCRY, BLL, REXMY » details
Traded in other countries:INPAP.USA, INP.Germany
International Paper Co. is a New York corporation, incorporated in 1941 as the successor to the New York Corporation of the same name organized in 1898. The Company is a global paper and packaging company that is complemented by an extensive North American merchant distribution system, with main markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company's businesses are separated into four segments: Industrial Packaging, Printing Papers, Consumer Packaging and Distribution. International Paper is the largest manufacturer of containerboard in the United States. The Company products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. International Paper is one of the largest manufacturers of uncoated freesheet printing papers in the world. Products in this segment principally include uncoated papers and market pulp. The Company also produces coated papers and uncoated bristols. The Company Everest, Fortress, and Starcote brands are used in packaging applications for everyday products such as food, cosmetics, pharmaceuticals, computer software and tobacco products. The Company's Carolina brand is used in commercial printing end uses such as greeting cards, paperback book covers, lottery tickets, direct mail and point-of-purchase advertising. Its U.S. capacity is supplemented by about 365,000 tons of capacity at its mills producing coated board in Poland and Russia and by its International Paper & Sun Cartonboard Co., Ltd. joint venture in China which has annual capacity of 1.0 million tons. The Company sells paper, packaging products and other products directly to end users and converters, as well as through agents, resellers and paper distributors. The major markets, both U.S. and non-U.S., in which the Company sells its principal products are very competitive. The Company's products compete with similar products produced by other forest products companies. It also competes, in some instances, with companies in other industries and against substitutes for wood and wood-fiber products. It owns numerous patents, copyrights, trademarks and trade secrets relating to its products and to the processes for their production. The Company's operations are subject to U.S. and non-U.S. laws and regulations relating to the environment, health and safety.

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