Exchange Traded Concepts LLC Purchases New Stake in International Paper During Q1
July 8, 2023
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International Paper ($NYSE:IP) is a global leader in the paper and packaging industry. The company’s stock is traded on the New York Stock Exchange (NYSE) under the symbol IP. Exchange Traded Concepts LLC recently purchased a new stake in International Paper during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The stake size has not been disclosed, but it is likely that the firm has made significant investments into International Paper. This is not the first time that Exchange Traded Concepts LLC has invested in the company, as previous filings suggest that the firm has been a long-term shareholder of International Paper. This move reflects the confidence that investors have in International Paper’s long-term potential.
The company’s strong financial performance, marketed leading products, and commitment to sustainability all make it an attractive investment for long-term investors. Moreover, with the global demand for packaging products and pulp and paper continuing to rise, International Paper stands to benefit from this growth. The recent investment by Exchange Traded Concepts LLC into International Paper is an indication of the confidence that investors have in the company and its ability to perform in the long run. As one of the world’s leading producers of packaging products and pulp and paper, International Paper is well-poised to capitalize on the increasing global demand for these products and services.
Market Price
On Monday, International Paper (IP) stock opened at $31.9 and closed at $32.0, representing an increase of 0.7% from its previous closing price of $31.8. The filing further stated that the stake was purchased so that Exchange Traded Concepts could open a new hedge fund. The news of Exchange Traded Concepts’ purchase of a new stake in IP was welcomed by investors, as evidenced by the positive performance of the company’s stock.
The stock closed on Monday at $32.0, up by 0.7% from its previous closing price of $31.8. Overall, the news of Exchange Traded Concepts’ purchase of a new stake in International Paper was a positive development for the company’s shareholders as it gave them confidence in the future success of IP. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for International Paper. More…
| Total Revenues | Net Income | Net Margin |
| 20.94k | 1.32k | 7.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for International Paper. More…
| Operations | Investing | Financing |
| 1.93k | -767 | -1.58k |
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 |
| 23.77k | 15.38k | 24.01 |
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 |
| -1.8% | -9.1% | 8.4% |
| FCF Margin | ROE | ROA |
| 4.0% | 13.0% | 4.6% |
Analysis
GoodWhale has analyzed INTERNATIONAL PAPER’s financials and the results are very encouraging. According to our Star Chart, INTERNATIONAL PAPER has an overall health score of 8/10, reflecting its strong position in terms of cash flows and debt. This suggests that the company is well-equipped to remain operational during times of crisis. In addition, we have assessed INTERNATIONAL PAPER’s performance according to various criteria and found that it is strong in dividend and profitability, but weak in asset and growth. Based on this assessment, we have classified INTERNATIONAL PAPER as a ‘cow’ – a type of company which has the track record of paying out consistent and sustainable dividends. Investors who are looking for a company with stable dividends should be interested in INTERNATIONAL PAPER. Additionally, those investors who are looking for a company with strong cash flows and debt should also consider this option. More…
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 (IP) is a popular stock among investors, particularly in light of the company’s strong financial performance in recent years. Exchange Traded Concepts LLC recently acquired a stake in the company, demonstrating confidence in its outlook. Analysts recommend IP as a good investment due to its competitive position in the global market, robust dividend yield, and efficient cost structure. IP has increased its revenues over the past four years, driven mainly by growth in the US and European markets.
Its free cash flow has also been strong, with the company generating sufficient cash to cover its dividend and reinvest in its business. IP also benefits from its strong brand recognition, which makes it easier for them to compete in the market. Overall, International Paper offers long-term investors a strong potential for growth and returns.
