| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 75 | — | 17.8x | Top tier | |
Growth | 29 | 35.3% | 7.1% | Bottom tier | |
Quality | 22 | -8.3% | 4.5% | Bottom tier | |
Safety | 39 | — | 2.6x | Bottom tier | |
Capital Return | 47 | 5.38% | 2.12% | Around median | |
Momentum | 31 | -12.8% | 2.9% | Bottom tier | |
Sentiment | 63 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
International Paper Company operates in packaging solutions, serving customers through its network of paper mills and shipping box plants in North America and the Europe, Middle East and Africa EMEA region. Its model is based on producing packaging paper grades and converting them into boxes and packaging solutions, with investments directed toward lowering production costs and improving service speed; examples include NORPAC, Riverdale, Dover and Waterloo, as well as upgrading the Lucca mill and expanding in Romania.
In the second quarter of fiscal year 2026, revenue was $6.0 billion and gross profit was $1.7 billion, equivalent to a gross margin of approximately 28.3%, while net income recorded a loss of $12 million and earnings per share were negative $0.02. Adjusted earnings before interest, taxes, depreciation and amortization were $587 million, with cash flow from operations of $526 million and negative free cash flow of $7 million after capital and transformation investments of $533 million.
At the segment level in the second quarter of fiscal year 2026, Packaging Solutions North America generated adjusted earnings before interest, taxes, depreciation and amortization of $425 million, compared with $182 million for Packaging Solutions EMEA. Daily box volumes in North America increased 1.7% year over year, but total sales were affected by the planned exit from non-strategic export business, while the EMEA segment faced weaker demand and margin pressure due to higher paper prices and distribution costs.
The average analyst price target is $50.14, within a range of $46 to $61, accompanied by a consensus rating of “Buy”; the average is also very close to the top of the 52-week range of $50.25, compared with a low of $29.26. The price-to-earnings multiple does not provide a useful valuation anchor given the trailing twelve-month loss of $4.0 billion and negative earnings per share, so the rerating case depends heavily on achieving the fiscal year 2026 adjusted earnings range and restoring accounting profitability despite the reduction in the upper end of the North America outlook.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue was $6.0 billion and gross profit was $1.7 billion, equivalent to a gross margin of approximately 28.3%. The company recorded a net loss of $12 million and negative earnings per share of $0.02, while adjusted earnings before interest, taxes, depreciation and amortization were $587 million. Cash flow from operations was $526 million, but free cash flow was negative $7 million after capital and transformation spending of $533 million.
The company lowered the upper end of its North America adjusted earnings before interest, taxes, depreciation and amortization range by approximately $50 million, bringing the range to $2.35 billion to $2.45 billion. Management estimated the impact of the macroeconomic environment at approximately $150 million instead of $50 million, due to higher spot transportation, OCC, diesel and employee medical costs. It also revised its demand outlook for the second half of fiscal year 2026 from an improvement of approximately one percentage point to nearly flat demand in North America, with continued uncertainty related to the conflict in the Middle East and purchasing power.
Automated analysis for informational purposes only — not investment advice.
International Paper completed the acquisition of NORPAC in June 2026, and its operations returned to the level preceding the incident at the neighboring Nippon facility after the steam supply issue was addressed. NORPAC adds capacity to serve demand for high-performance lightweight packaging grades, while reducing distribution costs to the West Coast and improving the cost of the mill network. The Riverdale machine conversion was completed in the second quarter of fiscal year 2026, and the company expects to complete most of the production ramp-up by the end of fiscal year 2026 and reach full operating capacity in the first quarter of fiscal year 2027.
The company is working to separate its packaging business in EMEA by 2027, and confirmed during the July 30, 2026 call that legal, operational and technology readiness work is proceeding according to the announced schedule. The separation is preceded by a restructuring program that includes announced annual operating savings exceeding $210 million and the closure or planned closure of 31 manufacturing facilities and a central office. The program is expected to result in a net reduction of more than 3,000 jobs, while the company targets adjusted earnings before interest, taxes, depreciation and amortization for the EMEA segment of between $900 million and $1 billion in fiscal year 2026.
The company suspended Pine Hill operations to conduct structural roof repairs and estimated the impact of the outage in the third quarter of fiscal year 2026 at approximately $85 million. The estimated impact in the second half of fiscal year 2026 ranges from $70 million to $100 million, amid a tight supply network and the company's need to reduce exports to meet the needs of core customers. Management expects to recover most of the loss through insurance, but explained on July 30, 2026 that the reimbursement details and the timing of matching it to the affected periods were still being worked through.
Management expects an improvement of approximately $600 million in North America adjusted earnings before interest, taxes, depreciation and amortization from the first half to the second half of fiscal year 2026, excluding the impact of Pine Hill. Drivers include the continued pass-through of price increases, the Riverdale production ramp-up, the contribution from NORPAC, and the accumulation of benefits from 80/20 initiatives after the heaviest quarter of planned maintenance. In EMEA, the company expects an improvement of approximately $170 million, including nearly $110 million from margin recovery and commercial growth, $40 million from cost reductions and $20 million from improved input costs.
