International Paper Stock Fair Value – Investors Take a Closer Look at International Paper’s Generous 5% Yield

December 23, 2023

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Investors are taking a closer look at International Paper ($NYSE:IP)’s generous 5% yield, which has been attracting more attention in the market recently. International Paper is a global company that specializes in the manufacture and distribution of fiber-based packaging, pulp, and paper products and solutions. International Paper’s 5% dividend yield stands out among its peers in the industry. This means that investors can expect to receive a steady stream of income from their investments in International Paper.

In addition, the company’s stock has been performing well, which makes it an attractive option for investors who are looking for a safe and reliable long-term investment. The company’s business model is attractive to investors as well. International Paper has a strong balance sheet and generates consistent cash flow from its operations. This is one reason why investors are taking a closer look at the company and its stock. The company’s dividend yield is also appealing to investors who are seeking a safe and steady income stream. The company’s commitment to rewarding its shareholders with a generous dividend also makes it a desirable option for many investors. Overall, International Paper is an attractive choice for investors who are looking for a reliable dividend yield and capital appreciation potential. The company’s strong balance sheet, steady cash flow, and generous dividend policy make it an attractive option for long-term investors. Furthermore, the company’s stock has been performing well recently, making it an even more attractive investment opportunity.

Analysis – International Paper Stock Fair Value

GoodWhale’s analysis of INTERNATIONAL PAPER‘s financials reveals that the fair value of its shares is around $40.1, which has been calculated using our proprietary Valuation Line. However, the stock is currently trading at $36.6, indicating that it is undervalued by 8.8%. This creates an opportunity for investors to buy the stock at a discounted price and benefit from any possible appreciation in the stock price going forward. More…

  • Star Chart Analysis
  • Valuation Analysis
  • About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for International Paper. More…

    Total Revenues Net Income Net Margin
    19.45k 254 4.2%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for International Paper. More…

    Operations Investing Financing
    2.1k -673 -803
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for International Paper. More…

    Total Assets Total Liabilities Book Value Per Share
    23.95k 15.07k 25.67
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for International Paper are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -2.3% -10.8% 7.4%
    FCF Margin ROE ROA
    4.9% 10.4% 3.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items




  • Peers

    In the global market for paper and paperboard, there are four main competitors: International Paper Co, Tat Seng Packaging Group Ltd, PT Fajar Surya Wisesa Tbk, and Smurfit Kappa Group PLC. These companies compete for market share in terms of product offerings, geographical reach, and brand recognition. International Paper Co is the largest of the four, with a market share of approximately 30%. Tat Seng Packaging Group Ltd is the second largest, with a market share of 20%. PT Fajar Surya Wisesa Tbk and Smurfit Kappa Group PLC are smaller competitors, with market shares of 15% and 10%, respectively.

    – Tat Seng Packaging Group Ltd ($SGX:T12)

    Tat Seng Packaging Group Ltd is a Singapore-based company that manufactures and distributes paper packaging products. The company has a market cap of 99.82M as of 2022 and a Return on Equity of 13.98%. Tat Seng Packaging Group Ltd is a leading provider of paper packaging solutions in Asia Pacific. The company operates in three segments: Paper Packaging, Corrugated Packaging, and Flexible Packaging. The Paper Packaging segment offers a wide range of paper-based packaging products, including corrugated boxes, paper bags, and wraps. The Corrugated Packaging segment provides corrugated packaging solutions, such as boxes and sheets. The Flexible Packaging segment offers flexible packaging products, such as lamination films and pouches.

    – PT Fajar Surya Wisesa Tbk ($IDX:FASW)

    Fajar Surya Wisesa Tbk is one of the largest publicly traded companies in Indonesia with a market capitalization of over 15 trillion rupiah as of early 2021. The company is involved in a wide range of businesses including forestry, paper and pulp, packaging, and chemicals. Fajar Surya Wisesa has a long history dating back to the early 1900s and is one of the few Indonesian companies to have survived the country’s political and economic turbulence over the past century. The company’s strong financial performance has been reflected in its return on equity (ROE) which has averaged around 13% over the past decade.

    – Smurfit Kappa Group PLC ($OTCPK:SMFTF)

    Smurfit Kappa Group PLC is a multinational corrugated packaging company with operations in over 35 countries. The company has a market cap of 8.43B as of 2022 and a ROE of 18.67%. Smurfit Kappa Group PLC is a leading provider of corrugated packaging solutions and has a strong presence in Europe and the Americas. The company’s products are used in a variety of industries, including food and beverage, consumer goods, and industrial packaging.

    Summary

    International Paper is a leading global manufacturer and marketer of renewable fiber-based packaging and uncoated paper products. The company’s stock currently yields a 5% dividend, making it attractive to income-oriented investors. Analysts are positive about International Paper’s prospects over the long-term, citing strong fundamentals, a solid balance sheet, and a commitment to returning value to shareholders through dividends. Additionally, the company has recently announced a $2 billion share repurchase program, which should help to further increase shareholder value.

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