The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 63 | — | 20.8x | Around median | |
Growth | 26 | 47.7% | 6.1% | Bottom tier | |
Quality | 19 | -11.1% | 6.6% | Bottom tier | |
Safety | 42 | — | 0.7x | Around median | |
Capital Return | 39 | 4.38% | 2.02% | Bottom tier | |
Momentum | 29 | -25.0% | 4.1% | Bottom tier | |
Sentiment | 78 | 9 | 3 | Top tier |
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 (IP) is a leading global producer of fiber-based packaging and paperboard, earning most of its profits from two primary segments: Industrial Packaging in North America and Packaging Solutions in Europe, the Middle East, and Africa (EMEA). The company manufactures corrugated packaging boxes, sustainable packaging materials, and shipping containers, serving a broad customer base across consumer goods, food and beverage, e-commerce, and diverse industrial product sectors.
During the first quarter of 2026, the company generated revenue of $6.0 billion, with a gross profit of $1.7 billion and net income of $60.0 million, resulting in earnings per share (EPS) of $0.11. Adjusted EBITDA for the enterprise reached $677 million with an EBITDA margin of 11.3%. On a segment level, North American Industrial Packaging generated adjusted EBITDA of $477 million, while the EMEA Packaging segment contributed $208 million, despite results being impacted by severe winter weather conditions in North America.
On a trailing twelve-month (TTM) basis, the company's revenue stood at $24.9 billion, with a gross profit of $7.2 billion and a net loss of -$1.1 billion, resulting in a negative EPS of -$2.0158. The company recorded free cash flow of $94 million in the first quarter, which included a one-time tax refund of $280 million, while receiving $1.1 billion from the sale of its Global Cellulose Fibers (GCF) business, allowing it to pay down $660 million of debt to strengthen its balance sheet flexibility.
International Paper's stock currently trades below the analysts' average target price of $46.75, with the forecast range spanning from a low of $39 to a high of $60. The current analyst consensus indicates a 'Buy' recommendation, reflecting confidence in the structural transformation plan and the upcoming corporate spin-off, despite reporting a net loss of -$1.1 billion on a trailing twelve-month basis.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
International Paper acquired the NORPAC paper mill in Longview, Washington, in June 2026 in a transaction valued at $360 million. This mill contains three paper machines, two of which produce lightweight recycled containerboard to address the growing demand for sustainable packaging solutions. The company's management expects this investment to deliver strong returns in the high-teens or better on invested capital by 2027. Additionally, this acquisition significantly contributes to reducing the company's logistics costs in the US West Coast markets.
The winter storm in January and early February 2026 caused a total negative impact of $53 million on the adjusted EBITDA of the North American Industrial Packaging segment. The largest portion of this impact, estimated at approximately $35 million, was due to the sharp spike in regional natural gas prices and local utility costs. Additionally, the weather disruptions caused $18 million in extra operational costs due to reliability challenges in the mill system. However, the company experienced a strong and gradual operational recovery during March, with momentum continuing into April of the same year.
Automated analysis for informational purposes only — not investment advice.
International Paper announced in January 2026 its plan to split its business into two independent public companies focusing on North America and the EMEA region. The company plans to complete this structural process within 12 to 15 months from the announcement date, subject to customary regulatory approvals. Following the spin-off, the company will retain an ownership stake of approximately 20% in the European business for a transition period ranging from 12 to 18 months. The European packaging company is expected to be dual-listed on the London Stock Exchange and the New York Stock Exchange, with both companies targeting an investment-grade credit rating.
The company adjusted its adjusted EBITDA guidance for the full year 2026 to be in the range of $3.2 billion to $3.5 billion at the enterprise level. This adjustment includes lowering the North American segment's guidance to a range between $2.35 billion and $2.5 billion due to inflationary pressures and diesel and chemical costs. Additionally, the EMEA segment's guidance was reduced by $100 million to be between $900 million and $1 billion as a result of margin compression and lower expected sales volumes. The company expects to generate free cash flow ranging from $300 million to $500 million during the same year to support dividend payments and debt reduction.
The paper machine at the Riverdale mill is undergoing a strategic conversion to increase lightweight containerboard production capacity and improve the company's overall product mix. This conversion and associated maintenance work caused operational pressures and temporary costs of approximately $100 million during the first half of 2026. The project is scheduled for full completion with the mill returning to operation by the end of the second quarter of 2026, eliminating the recurrence of these costs in the second half. Management is confident that this project will provide a long-term driver and contribute to improving profit margins starting from the second half of 2026 and beyond.