International Paper CoMEX:IP 63 Gross Margin % is 28.92% as of Mar. 2026, which is 3% below its 10-year median of 29.68. GuruFocus rates MEX:IP with a GF Score™ of 63/100 and a GF Value™ of MXN600.99 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 383 Packaging & Containers companies, International Paper Co ranks better than 71.54% on this metric.
MEX:IP's Gross Margin % is ranked better than 71.54% of 383
companies
in the Packaging & Containers industry
Industry Median: 21.27
vs MEX:IP: 29.79
International Paper Co had a gross margin of 28.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for International Paper Co was -0.30% per year.
International Paper Co (MEX:IP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
International Paper Co had a gross margin of 28.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
International Paper Co Gross Margin % Related Terms
International Paper Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for International Paper Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:IP vs AMCR, PKG, BALL: Gross Margin % Comparison
For the Packaging & Containers subindustry, International Paper Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Paper Co Gross Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, International Paper Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where International Paper Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
International Paper Co (MEX:IP) has a Gross Margin % of 28.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on International Paper Co and its competitors. This is near median its historical median of 29.68. Over the past decade, International Paper Co's Gross Margin % has ranged from 28.03 to 33.26. According to the industry distribution chart, International Paper Co ranks #109 out of 383 companies in the Packaging & Containers industry, placing it in the top 28.5%.
Is International Paper Co's Gross Margin % too high?
International Paper Co's current Gross Margin % of 28.92% is near median its 10-year median of 29.68. Over the past 10 years, this metric has ranged from a low of 28.03 to a high of 33.26. The Packaging & Containers industry median Gross Margin % is 21.27. International Paper Co's value of 28.92% is 36% above this industry median. Based on the distribution chart, International Paper Co ranks #109 out of 383 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, International Paper Co has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does International Paper Co's Gross Margin % compare to AMCR and PKG?
According to the Packaging & Containers industry distribution chart, International Paper Co ranks #109 out of 383 companies for Gross Margin %. This puts International Paper Co in the upper half of its industry. The industry median Gross Margin % is 21.27. International Paper Co's value of 28.92% is 36% above this benchmark. Historically, International Paper Co's own Gross Margin % has ranged from 28.03 to 33.26 over the past decade. While the company's 10-year median is 29.68 vs. the industry median of 21.27, International Paper Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Packaging & Containers company?
The median Gross Margin % among Packaging & Containers companies is 21.27, based on 383 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Paper Co's current Gross Margin % of 28.92% is 36% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on International Paper Co and its competitors. For the Packaging & Containers industry, the median Gross Margin % is 21.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Paper Co's current Gross Margin % is 28.92%, which is near median its own 10-year median of 29.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is International Paper Co stock overvalued right now?
Based on GuruFocus' analysis, International Paper Co (MEX:IP) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN600.99, compared to a current price of MXN527.33 — trading 12.3% below its estimated fair value. The current Gross Margin % is 28.92%, which is near median its 10-year median of 29.68 and 36% above the Packaging & Containers industry median of 21.27. International Paper Co's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For International Paper Co (MEX:IP), the current Gross Margin % is 28.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is International Paper Co (MEX:IP) Overvalued in 2026?
Based on GuruFocus' analysis, International Paper Co stock appears to be undervalued.
The current stock price of MXN527.33 is trading 12.3% below its estimated GF Value™ of MXN600.99.
GuruFocus considers International Paper Co to be Modestly Undervalued.
Key valuation signals for MEX:IP:
Gross Margin %: 28.92% (near median its 10-year median of 29.68)
GF Value™: MXN600.99 vs. price of MXN527.33 (12.3% below fair value)
Industry Position: 36% above the Packaging & Containers median (#109 of 383)
No single metric tells the full story. See the MEX:IP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
International Paper manufactures packaging products. It accounts for roughly one-third of the North American corrugated packaging market. The company also has a substantial presence in Europe following its acquisition of DS Smith. International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.
63GF Score
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