INTERNATIONAL PAPER CO /NEW/ (IP) Stock Analysis
INTERNATIONAL PAPER CO /NEW/ (IP) Stock Analysis
Analysis from 10-Q filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
INTERNATIONAL PAPER CO /NEW/ faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 1.0% | Below expectations |
| FCF Margin | -0.7% | Cash flow pressure |
| Debt/Equity | 0.7x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore INTERNATIONAL PAPER CO /NEW/: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: INTERNATIONAL PAPER CO /NEW/ earns 1.0% ROIC, Bottom 50% in Industrials
INTERNATIONAL PAPER CO /NEW/'s trailing-twelve-month ROIC of 1.0% ranks Bottom 50% in Industrials companies (sector median: 7.3%), driven by NOPAT margin of 1.2% combined with asset turnover of 0.6x. Source: 10-Q filed 2025-11-06. Gross margin of 25.8% with operating margin at 1.5% reflects a competitive pricing environment.
| Metric | IP | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 1.0% | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | -28.9% | Red flag | Moderate equity returns |
| Gross Margin | 25.8% | Adequate | Competitive pricing environment |
| Operating Margin | 1.5% | Warning | Moderate operational efficiency |
Cash Flow: INTERNATIONAL PAPER CO /NEW/ generates $-159.0M FCF at -0.7% margin, positive NaN/8 quarters
INTERNATIONAL PAPER CO /NEW/ generated $-159.0M in free cash flow (TTM), a -0.7% FCF margin. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-06.
| Metric | IP | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | -0.7% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-159.0M | Red flag | Cash burn |
| OCF/Net Income | -0.5x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: INTERNATIONAL PAPER CO /NEW/ at 0.7x leverage
INTERNATIONAL PAPER CO /NEW/'s debt-to-equity ratio of 0.7x reflects moderate leverage. Total debt of $9.8B offset by $1.1B in cash. Source: 10-Q filed 2025-11-06.
| Metric | IP | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.7x | Good | Moderate leverage |
| Net Cash Position | $-8.7B | Warning | Net debt position |
Valuation: INTERNATIONAL PAPER CO /NEW/ trades at -5.9x earnings
INTERNATIONAL PAPER CO /NEW/ trades at a P/E of -5.9x. Free cash flow yield of -0.8% reflects market expectations for growth.
| Metric | IP | Rating | Context |
|---|---|---|---|
| P/E Ratio | -5.9x | Red flag | Reasonable valuation |
| EV/Sales | 1.2x | Excellent | Attractive revenue multiple |
| FCF Yield | -0.8% | Warning | Lower cash yield |
| Dividend Yield | 4.7% | Good | Meaningful income |
Capital Allocation: INTERNATIONAL PAPER CO /NEW/ returns 5.0% shareholder yield
INTERNATIONAL PAPER CO /NEW/'s total shareholder yield is 5.0% (dividends 4.7% + buybacks 0.3%). Source: 10-Q filed 2025-11-06.
| Metric | IP | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.0% | Good | Dividend + buyback yield combined |
| Buyback Yield | 0.3% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $1.0B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 1.0% | Bottom 50% | 0.1x below |
| Free Cash Flow Margin | -0.7% | Bottom 10% | -0.1x below |
| Gross Margin | 25.8% | Bottom 50% | 0.8x below |
| Operating Margin | 1.5% | Bottom 25% | 0.2x below |
| Return on Equity (ROE) | -28.9% | Top 5% | -3.4x below |
Financial Scorecard
| Metric | IP | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 1.0% | Red flag | Bottom 50% of sector (median: 7.3%) |
| Free Cash Flow Margin | -0.7% | Red flag | Thin cash margins |
| Gross Margin | 25.8% | Adequate | Bottom 50% of sector (median: 33.1%) |
| Debt to Equity Ratio | 66.3% | Good | Moderate leverage |
| Free Cash Flow Yield | -0.8% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is INTERNATIONAL PAPER CO /NEW/'s Return on Invested Capital (ROIC)?
INTERNATIONAL PAPER CO /NEW/ (IP) has a trailing twelve-month Return on Invested Capital (ROIC) of 1.0%. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is INTERNATIONAL PAPER CO /NEW/'s Free Cash Flow Margin?
INTERNATIONAL PAPER CO /NEW/ (IP) has a free cash flow margin of -0.7%, generating $-159.0 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is INTERNATIONAL PAPER CO /NEW/ stock overvalued or undervalued?
INTERNATIONAL PAPER CO /NEW/ (IP) trades at a P/E ratio of -5.9x, which is above the sector median of N/A. The EV/Sales multiple is 1.2x.
Q: Does INTERNATIONAL PAPER CO /NEW/ pay a dividend?
INTERNATIONAL PAPER CO /NEW/ (IP) currently pays a dividend yield of 4.7%. Including share buybacks, the total shareholder yield is 5.0%. A yield above 4% is attractive for income investors, though sustainability should be verified through payout ratio analysis.
Q: How much debt does INTERNATIONAL PAPER CO /NEW/ have?
INTERNATIONAL PAPER CO /NEW/ (IP) has a debt-to-equity ratio of 0.7x with total debt of $9.8 billion. Net debt position is $8.7 billion.
Q: What is INTERNATIONAL PAPER CO /NEW/'s revenue and earnings growth?
INTERNATIONAL PAPER CO /NEW/ (IP) grew revenue by 49.3% year-over-year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does INTERNATIONAL PAPER CO /NEW/ compare to competitors in Industrials?
Compared to other companies in Industrials, INTERNATIONAL PAPER CO /NEW/ (IP) shows: ROIC of 1.0% is below the sector median of 7.3% (Bottom 26%). FCF margin of -0.7% trails the sector median of 4.7%. Gross margin at 25.8% is 7.3 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with INTERNATIONAL PAPER CO /NEW/?
Investors in INTERNATIONAL PAPER CO /NEW/ (IP) should monitor these potential warning signs: 1) FCF margin is thin at -0.7%, leaving limited buffer for economic downturns. 2) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.