International Paper Company [NYSE: IP] shares went higher by 4.92% from its previous closing of 28.80, now trading at the price of $30.22, also adding 1.42 points. Is IP stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 1.5 million contracts. Compared to the average trading volume of IP shares, the company saw a far better performance. Moreover, the stock has a 391.09M float and a -6.95% run over in the last seven days. IP share price has been hovering between 47.96 and 26.38 lately, and is definitely worthy of attention.
International Paper Company [NYSE:IP]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to International Paper Company [IP], the most recently available average analyst rating is from the quarter that ends in 12/30/2019. On average, stock market experts give IP an Hold rating. The average 12-month price forecast for this stock is $30.16, with the high estimate being $53.00, the low estimate being $34.00 and the median estimate amounting to $40.00. This is compared to its latest closing price of $28.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for International Paper Company [IP] is sitting at 3.18. This is compared to 1 month ago, when its average rating was 3.18.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on 04/30/2020.
Fundamental Analysis of International Paper Company [IP]
Now let’s turn to look at profitability: with a current Operating Margin for International Paper Company [IP] sitting at 9.50% and its Gross Margin at 31.80%, this company’s Net Margin is now 5.50. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 12.33, and its Return on Invested Capital has reached 7.00. Its Return on Equity is 16.30%, and its Return on Assets is 3.60%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates IP financial performance.
Turning to investigate this organization’s capital structure, International Paper Company [IP] has generated a Total Debt to Total Equity ratio of 130.55. Similarly, its Total Debt to Total Capital is 56.62, while its Total Debt to Total Assets stands at 43.09. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 128.37, and its Long-Term Debt to Total Capital is 55.68.
What about valuation? This company’s Enterprise Value to EBITDA is 7.51 and its Total Debt to EBITDA Value is 3.70. The Enterprise Value to Sales for this firm is now 1.27, and its Total Debt to Enterprise Value stands at 0.36. International Paper Company [IP] has a Price to Book Ratio of 2.34, a Price to Cash Flow Ratio of 5.09 and P/E Ratio of 9.83. These metrics all suggest that International Paper Company is more likely to generate a positive ROI.
International Paper Company [IP] has 402.80M shares outstanding, amounting to a total market cap of 11.60B. Its stock price has been found in the range of 26.38 to 47.96. At its current price, it has moved down by -36.99% from its 52-week high, and it has moved up 14.55% from its 52-week low.
This stock’s Beta value is currently 1.28, which indicates that it is 9.83% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.35. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is International Paper Company [IP] a Reliable Buy?
Shares of International Paper Company [IP], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.