Last Updated: 14 Sep 2024
Executive Summary
International Paper (IP) is a global leader in the pulp and paper industry, with a market capitalization of $16.65 billion. The company has a strong financial performance, with an EBITDA of $2.07 billion and a trailing PE ratio of 36.6. Despite facing challenges in the paper industry, IP has maintained a stable dividend yield of 0.0393 and has a positive long-term outlook.
Company Overview
IP is the world's largest pulp and paper company, headquartered in Memphis, Tennessee. The company operates in over 24 countries and employs approximately 38,000 people. IP's primary products include packaging, pulp, paper, and cellulose fibers.
Fundamental Analysis
IP's financial performance has been solid in recent years. The company's revenue has grown by an average of 1.1% over the past five years, and its net income has increased by an average of 2.3%. IP's profit margin is 2.34%, and its operating margin is 6.55%.
The company's balance sheet is also strong. IP has a debt-to-equity ratio of 0.47, and its current ratio is 1.23. The company's cash and cash equivalents total $1.5 billion.
Technical Analysis
IP's stock price has been trending sideways in recent months. The stock is currently trading at $48.7, which is below its 52-week high of $49.39. The stock's 50-day moving average is $46.14, and its 200-day moving average is $40.21.
Short Term Outlook
In the short term, IP's stock price is likely to continue to trade sideways. The company's fundamentals are strong, but the paper industry is facing some challenges. If the paper industry improves, IP's stock price could move higher.
Long Term Outlook
In the long term, IP's stock price has the potential to grow. The company is a leader in the pulp and paper industry, and it has a strong financial foundation. As the global economy grows, demand for paper and pulp products is likely to increase, which could benefit IP.
Analyst Recommendations
The majority of analysts have a "Hold" rating on IP's stock. The average analyst target price is $49.79, which is slightly above the current stock price.
