Price movement

International Paper Company (IP) has a market cap of $17.4 billion. Its stock rose by 2.9% to close at $42.38 per share on June 30, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -2.1%, 0.64%, and 15.1%, respectively, on the same day. IP is trading 0.19% above its 20-day moving average, 0.83% above its 50-day moving average, and 8.4% above its 200-day moving average.

International Paper Acquires Holmen Paper Madrid Mill

Related ETF and peers

The Guggenheim MSCI Global Timber ETF (CUT) invests 4.0% of its holdings in International Paper. The ETF tracks the MSCI ACWI IMI Timber Select Capped Index. The YTD price movement of CUT was -3.3% on June 30.

The market caps of International Paper’s competitors are as follows:

  • Packaging Corporation of America (PKG): $6.3 billion
  • Domtar Corporation (UFS): $2.2 billion
  • KapStone Paper and Packaging Corporation (KS): $1.3 billion

Latest news on International Paper

International Paper has completed the acquisition of the Holmen Paper Madrid Mill in Spain and the sale of its corrugated packing business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise. It’s also planning to produce recycled containerboard by converting newsprint machines during the second half of 2017.

International Paper’s performance in fiscal 1Q16

International Paper reported fiscal 1Q16 net sales of $5,110.0 million, a fall of 7.4% compared to net sales of $5,517.0 million in fiscal 1Q15. Sales from the industrial packaging, printing papers, and consumer packaging segments fell by 2.8%, 3.6%, and 36.4%, respectively, in fiscal 1Q16 compared to fiscal 1Q15. The company reported net losses on sales and impairment of businesses of $37.0 million in fiscal 1Q16.

Its net income and EPS (earnings per share) rose to $334.0 million and $0.81, respectively, in fiscal 1Q16, compared to $313.0 million and $0.74, respectively, in fiscal 1Q15.

International Paper’s cash and temporary investments rose by 10%, and its inventories fell by 0.49% in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio rose to 1.66x, and its long-term DE (debt-to-equity) ratio fell to 2.1x in fiscal 1Q16, compared to current and long-term DE ratios of 1.65x and 2.3x, respectively, in fiscal 4Q15. The company reported a free cash flow of $311.0 million in fiscal 1Q16.

In the next part of this series, we’ll discuss ConAgra Foods’ performance in fiscal 4Q16.

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