Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. International Paper Co's
Operating Income
for the
three
months ended in Mar. 2026 was CHF137 Mil. International Paper Co's Interest Expense for the
three
months ended in Mar. 2026 was CHF-104 Mil.
International Paper Co's interest coverage for the quarter that ended in Mar. 2026 was 1.32.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for International Paper Co's Interest Coverage or its related term are showing as below:
XSWX:IP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.34 Med: 3.03 Max: 4.35
Current: 0.34
XSWX:IP's Interest Coverage is ranked worse than 96.85% of 317
companies
in the Packaging & Containers industry
Industry Median: 6.08
vs XSWX:IP: 0.34
International Paper Co (XSWX:IP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
International Paper Co Interest Coverage Related Terms
International Paper Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for International Paper Co's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:IP vs AMCR, PKG, BALL: Interest Coverage Comparison
For the Packaging & Containers subindustry, International Paper Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, International Paper Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where International Paper Co's Interest Coverage falls into.
International Paper Co Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
International Paper Co (XSWX:IP) has a Interest Coverage of 1.32 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on International Paper Co and its competitors. This is 56% below median its historical median of 3.03. Over the past decade, International Paper Co's Interest Coverage has ranged from 0.34 to 4.35. According to the industry distribution chart, International Paper Co ranks #307 out of 317 companies in the Packaging & Containers industry, placing it in the top 96.8%.
Is International Paper Co's Interest Coverage too high?
International Paper Co's current Interest Coverage of 1.32 is 56% below median its 10-year median of 3.03. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 4.35. The Packaging & Containers industry median Interest Coverage is 6.08. International Paper Co's value of 1.32 is 78.3% below this industry median. Based on the distribution chart, International Paper Co ranks #307 out of 317 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, International Paper Co has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does International Paper Co's Interest Coverage compare to AMCR and PKG?
According to the Packaging & Containers industry distribution chart, International Paper Co ranks #307 out of 317 companies for Interest Coverage. This places International Paper Co in the lower half of its industry. The industry median Interest Coverage is 6.08. International Paper Co's value of 1.32 is 78.3% below this benchmark. Historically, International Paper Co's own Interest Coverage has ranged from 0.34 to 4.35 over the past decade. While the company's 10-year median is 3.03 vs. the industry median of 6.08, International Paper Co has consistently been below 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 Interest Coverage for a Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.08, based on 317 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. International Paper Co's current Interest Coverage of 1.32 is 78.3% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on International Paper Co and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. International Paper Co's current Interest Coverage is 1.32, which is 56% below median its own 10-year median of 3.03. 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?
International Paper Co (XSWX:IP) has a current Interest Coverage of 1.32. The stock's GF Value™ is CHF34.97, compared to a current price of CHF30.68 — trading 12.3% below its estimated fair value. The current Interest Coverage is 1.32, which is 56% below median its 10-year median of 3.03 and 78.3% below the Packaging & Containers industry median of 6.08. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For International Paper Co (XSWX:IP), the current Interest Coverage is 1.32 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 (XSWX:IP) Overvalued in 2026?
Based on GuruFocus' analysis, International Paper Co stock appears to be undervalued.
The current stock price of CHF30.68 is trading 12.3% below its estimated GF Value™ of CHF34.97.
Key valuation signals for XSWX:IP:
Interest Coverage: 1.32 (56% below median its 10-year median of 3.03)
GF Value™: CHF34.97 vs. price of CHF30.68 (12.3% below fair value)
Industry Position: 78.3% below the Packaging & Containers median (#307 of 317)
No single metric tells the full story. See the XSWX: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
Get the complete analysis for XSWX:IP
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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