International Paper Co (INPAP) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

International Paper's price-to-book of 1.34 is above the Paper and Allied Products median of 1.33.

Trading below fair value

The share price of $36.64 is below our fair value estimate of $40.02.

Margin of safety under 20%

The price is 8.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 25.4% over the last twelve months; the Paper and Allied Products median is 0.4%.

Guidance lowered

International Paper lowered its Full-Year Adjusted EBITDA (non-GAAP) from continuing operations outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 29.8% over the last twelve months, against 28.2% a year earlier.

Return on equity under 15%

Return on equity was -20.8% over the last twelve months and averaged 3.5% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

International Paper's return on equity of -20.8% is below the Paper and Allied Products median of 2.7%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -14.2% over the last twelve months, against a 5-year average of 1.3%.

Net margin below the industry

International Paper's net margin of -14.2% is below the Paper and Allied Products median of 1.6%.

High debt

Debt is 63.8% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 103% five years ago to 63.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.7% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.10 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.38; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

International Paper paid dividends worth 5.1% of the share price over the last twelve months.

Yield above Treasuries

The 5.1% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.9% or more; International Paper yields 5.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 199% of free cash flow.