NYSE:IP
$25.34
(3/12 6:40PM)
+0.6%
| Open | $25.45 |
Mkt Cap | $11.1 Billion |
| High | $25.71 |
52Wk High | $28.61 |
| Low | $25.19 |
52Wk Low | $6.80 |
| Volume | 6.1 Million |
Avg Vol 10D | 5.7 Million |
Ockham's Rating/Recommendation Summary
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IP Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at IP through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.85x and 0.51x respectively.
Utilizing this range we can see that IP’s current Price to Sales per share ratio of 0.47x is significantly below its average levels historically. In fact, with a current price of $25.34, IP is a full 31% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for IP.
IP Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of IP, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for IP, the current level of Cash Earnings compared to its historical levels helps identify where IP is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 26.26 and a historical low Cash Earnings per share ratio of 17.13, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for IP? From the Ockham perspective, we are looking specifically at IP to see if the market is recognizing the huge disparity between IP's past stock price to Cash Earnings ratio to today's levels. At a difference of 77% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at IP. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
IP Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for IP, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. IP’s estimated annual dividend is $0.10 resulting in a current dividend yield of 0.39%. The highest dividend yield from IP over recent history was 9.80% while the lowest dividend yield was 0.35%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as IP that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 92.32% below the median yield.
Slow Month for News Out of IP But Mad Money Mentions Them
It's been at least a month since we noticed any major news coverage of IP, so the story in Mad Money may get the ball rolling.
Based on our methodology, International Paper Company should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; IP has received less coverage from the financial media in business television and blogs. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, March 06, 2010.
“… Genworth, wyndham, ford, INTERNATIONAL PAPER, they were the ones with the biggest gains. How about that russell 200 of small cap stocks? It's up 90%. . …”
Mad Money Talks Cash Flow and IP
Generating cash flow is a goal for any company as well all know cash is king. Cash flow and International Paper Company were discussed recently on Mad Money.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IP has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on IP. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… But they're the right ones to make for INTERNATIONAL PAPER going forward. > > you're a great businessman, and i'm going to ask you to do something that I think I have trouble ... …”
The Outlook for Emerging Markets and International Paper Company Discussed on Mad Money
For growth, there is nowhere growing more rapidly than emerging markets. Recently, Mad Money talked about emerging markets and their impact on International Paper Company.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, International Paper Company has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see International Paper Company underperforming. The Ockham valuation currently has a Fairly Valued stance on IP because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Looking beyond that, we think INTERNATIONAL PAPER's best days are ahead of us, and got lots of earnings from initiatives, pricing, volume in north america and around the world. …”
Mad Money: What is Happening with International Paper Company Now?
The latest news on Mad Money in regards to IP came through on RazorWire recently.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see International Paper Company underperforming. The Ockham valuation currently has a Fairly Valued stance on IP because it trades within the price range that we would expect given current market conditions and fundamentals. Investors are headed for the exit following today's news as the stock is trading down $1.26. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, International Paper Company has actually sunk a bit in comparison to the others.
“… in friday's game plan, I told you to keep an eye on INTERNATIONAL PAPER, which just reported its fourth quarter today. This manufacturer of all kinds of paper from loose leaf ... …”
Mad Money Has the Latest News on IP
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to International Paper Company.
We noticed recently that in comparison to all other stocks we analyze in the news; IP has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. International Paper Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.
“… Cramer's getting answers from INTERNATIONAL PAPER ceo on the executive decision. And later, hard times for hard drives? …”
International Paper Company Was Talked About by Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to International Paper Company.
The Ockham valuation currently has a Fairly Valued stance on IP because it trades within the price range that we would expect given current market conditions and fundamentals. In comparison to the other stocks that we follow, International Paper Company has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards IP and think that it will generally perform in-line with the S&P 500.
“… I like INTERNATIONAL PAPER better. That's a decent spec. I need to go to randy in new york. > > caller: boo-yah, staten island! Big daddy calling. > > holy cow. …”
News Breaking on International Paper Company on The Call
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to International Paper Company.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards IP and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, International Paper Company has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on IP because it trades within the price range that we would expect given current market conditions and fundamentals.
“… INTERNATIONAL PAPER, huge gains the best-performing sector was tech. Up 61% this year within the s&p sector and take a look at the sector performers. …”
Notice a Discussion Covering IP Appeared Recently in the Financial News
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on IP from Fast Money.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe International Paper Company will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on IP. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IP has been less covered in the news compared to the rest of our universe of stocks.
“… Any time you get more sophisticated, put up INTERNATIONAL PAPER here. This stock has been a gradual up trend. Dennis, explain to us why it a classic sign, you want to be above ... …”
Power Lunch Discusses Higher Prices and International Paper Company
When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Power Lunch recommends for International Paper Company and obviously Ockham has an opinion as well.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe International Paper Company will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, IP has been less covered in the news compared to the rest of our universe of stocks. The Ockham valuation currently has a Fairly Valued stance on IP because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Ford, INTERNATIONAL PAPER "the new york times," one of the newspaper stocks that don hodges upgraded by ginnett. Some of the big broker for > > there you go, 52-week highs. …”
International Paper Company Was Talked About by Squawk Box
The latest news on Squawk Box in regards to IP came through on RazorWire recently.
International Paper Company receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; IP has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… also, vice president joe biden will meet with ceos of manufacturing companies today, including proctor & gamble, honeywell and INTERNATIONAL PAPER, talking about the vital ... …”