- International Paper’s 4Q net sales were $4.58 billion, slightly down by 0.5% compared to the previous year, and below the estimated $4.75 billion.
- Industrial Packaging net sales rose slightly by 0.7% year-over-year to $3.87 billion, missing the estimate of $3.99 billion.
- Global Cellulose Fibers saw a net sales increase of 0.9% year-over-year, reaching $662 million, but did not meet the expected $699.3 million.
- Industrial Packaging operating profit was $247 million, a decrease of 22% from the previous year, and below the anticipated $266.2 million.
- The company reported an adjusted free cash flow of $137 million, which is a 27% decrease year-over-year.
- Analyst recommendations include 5 buys, 4 holds, and 2 sells for International Paper.
International Paper Co on Smartkarma
Analyst coverage on International Paper Co by independent research network Smartkarma showcases positive sentiments towards the company’s growth potential. Baptista Research, in their report titled “International Paper Company: Strategic Acquisitions & Integration Synergies As A Vital Tool For Growth! – Major Drivers,” highlights CEO Andy Silvernail’s strategic initiatives to position the company as a low-cost producer and sustainable packaging solutions provider. The report delves into factors influencing the company’s future valuation using a Discounted Cash Flow methodology.
Further support for International Paper’s outlook comes from Value Investors Club‘s report, “International Paper (IP) – Tuesday, May 21, 2024,” which emphasizes the potential for operational turnaround and market improvements in the cardboard box industry. The appointment of new CEO Andrew Silvernail is seen as an opportunity for value creation, with a possible acquisition by Suzano presenting upside potential for investors amidst a packaging industry upturn.
A look at International Paper Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
International Paper Co has received a solid Smartkarma Smart Score across various key factors. With a respectable Value score of 3, the company is deemed to be fairly valued based on its financial metrics. Additionally, its strong Dividend score of 4 indicates a reliable track record of dividend payments to investors. However, the Growth and Resilience scores are on the lower side at 2, suggesting potential areas for improvement in terms of future growth and ability to withstand economic challenges. On a positive note, International Paper Co excels in Momentum with a top score of 5, implying strong market performance and investor interest in the company’s stock.
International Paper Company, a global leader in the production and distribution of paper-based packaging and related products, showcases a diversified geographical presence with manufacturing operations spread across North America, Europe, Latin America, Russia, and Asia. Despite facing some challenges in growth and resilience, the company’s strong dividend history and impressive market momentum position it well for potential long-term success. Investors may find International Paper Co to be an attractive option considering its balanced performance across various Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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