NYSE:IP
$22.95
(2/9 2:36PM)
+2.0%
| Open | $22.86 |
Mkt Cap | $9.7 Billion |
| High | $23.3 |
52Wk High | $28.61 |
| Low | $22.5 |
52Wk Low | $3.93 |
| Volume | 4.9 Million |
Avg Vol 10D | 7.8 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 0.77x and 0.46x respectively.
Utilizing this range we can see that IP’s current Price to Sales per share ratio of 0.42x is significantly below its average levels historically. In fact, with a current price of $22.67, IP is a full 32% 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 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 30.04 and a historical low Cash Earnings per share ratio of 17.30, an investor can relate where value becomes optimal.
At its current price of $22.67, the Price to Cash Earnings ratio of 21.39 per share for IP is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at IP must continue on its generation to improve our overall outlook for the stock.
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 0.44%. 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 91.33% below the median yield.
Heard on The Razor's Edge: CEO of IP Discussed
International Paper Company's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
The crowd at The Motley Fool does not like IP and believes that it will Underperform. 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. Please be aware that IP is trading off $1.83 today, and is clearly being affected by the latest news. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on IP.
“… Even with the tough decline, INTERNATIONAL PAPER is up 4% since the last time we spoke to the CEO on September 25th. Then the stock was at $21. 71. What happened? …”
The Chief Executive of IP Was Discussed on The Razor's Edge
Staying in touch with the latest management news is one way we are keeping our clients informed. Notice, RazorWire has a news capture related to IP's CEO.
A significant sell off of $1.83 is underway right now, so investors in IP should pay close attention to the news. 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. 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.
“… Faraci noted that INTERNATIONAL PAPER’s business is short-cycle and benefits from the initial signs of recovery, and that certainly seems to be the case for most basic materials ... …”
IP's Valuation in Focus on The Razor's Edge
International Paper Company was talked about in relation to their valuation on The Razor's Edge, and you can see what the pundits are saying with RazorWire.
A significant sell off of $1.83 is underway right now, so investors in IP should pay close attention to the news. 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.
“… back down below $20, which would make the valuation far more attractive. INTERNATIONAL PAPER is Hardly the World’s Cheapest …”
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? …”
Focus on Costs: IP on WSJ Marketbeat
The best run companies in the world always have their costs in check. Recently, IP was mentioned in regards to costs on WSJ Marketbeat.
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. 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.
“… INTERNATIONAL PAPER’s fourth-quarter loss narrowed sharply amid much-lower restructuring-related charges and write-downs. …”
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. …”