Jefferies Names Sealed Air, Ball and Crown Holdings as Top Packaging Stocks for 2024, with International Paper Close Behind
December 15, 2023
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Jefferies has identified Sealed Air, Ball and Crown Holdings as the top packaging stocks for 2024, with International Paper ($NYSE:IP) close behind. International Paper Company is one of the world’s leading producers of fiber-based packaging, pulp and paper. International Paper has a well-established presence in North America and Europe, and its products are sold to customers worldwide. International Paper’s stock has been performing well in recent years, with the company exhibiting strong financial performance.
The company has made significant investments in its operations to ensure it is well-positioned to capitalize on the growth opportunities in the packaging industry. Furthermore, the company has implemented a number of initiatives to drive efficiency and reduce costs, helping to boost its bottom line. With these efforts in place, International Paper is well-positioned to remain a leader in the packaging industry in the years ahead.
Share Price
International Paper came in close behind, with its stock opening at $37.2 and closing at $37.7, up by 2.1% from its prior closing price of $36.9. The company is well-positioned to benefit from the rising demand for strong and lightweight packaging products as well as the emerging trend in sustainability. 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 |
| 19.45k | 254 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for International Paper. More…
| Operations | Investing | Financing |
| 2.1k | -673 | -803 |
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 |
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% |
Analysis
GoodWhale conducted an analysis of INTERNATIONAL PAPER‘s wellbeing. Based on our Star Chart, we classified INTERNATIONAL PAPER as a ‘cow’, which we conclude is a company with a track record of paying out consistent and sustainable dividends. Investors interested in this type of company are likely to be income-seeking individuals or those interested in preserving capital. In terms of its fundamentals, INTERNATIONAL PAPER is strong in asset, medium in dividend, profitability and weak in growth. Additionally, GoodWhale’s health score for INTERNATIONAL PAPER is 8/10, indicating that the company is capable of safely riding out any crisis without the risk of bankruptcy due to its secure cashflows and debt. 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’s focus on cost savings, investments in manufacturing and supply chain improvements, and strong balance sheet indicate success in the long term. With a global presence and brand recognition, as well as potential acquisition targets, International Paper should continue to be a solid investment for years to come. The firm also notes that the company’s commitment to sustainability should further bolster returns in the future.
