International Paper Company (IP) has a market cap of $18.3 billion. It rose by 2.7% to close at $44.17 per share on July 12, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 5.8%, 2.3%, and 19.9%, respectively, on the same day. IP is trading 5.3% above its 20-day moving average, 5.2% above its 50-day moving average, and 12.7% above its 200-day moving average.
Related ETF and peers
The Guggenheim MSCI Global Timber ETF (CUT) invests 4.3% of its holdings in International Paper. The ETF tracks the MSCI ACWI IMI Timber Select Capped Index, a market-cap-weighted index of global timber equities. The YTD price movement of CUT was -0.51% on July 12.
The market caps of International Paper’s competitors are as follows:
- Packaging Corporation of America (PKG): $6.7 billion
- Domtar (UFS): $2.2 billion
- KapStone Paper and Packaging (KS): $1.3 billion
International Paper declared dividend
International Paper has declared a quarterly dividend of $0.44 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record at the close of business on August 15, 2016.
International Paper’s performance in 1Q16
International Paper reported 1Q16 net sales of $5,110.0 million, a fall of 7.4% compared to net sales of $5,517.0 million in 1Q15. Sales from the industrial packaging, printing papers, and consumer packaging segments fell by 2.8%, 3.6%, and 36.4%, respectively, in 1Q16 compared to 1Q15. The company reported net losses on sales and impairment of businesses of $37.0 million in 1Q16.
Its net income and EPS (earnings per share) rose to $334.0 million and $0.81, respectively, in 1Q16, compared to $313.0 million and $0.74, respectively, in 1Q15.
International Paper’s cash and temporary investments rose by 10%, and its inventories fell by 0.49% in 1Q16 compared to 4Q15. Its current ratio rose to 1.66x, and its long-term DE (debt-to-equity) ratio fell to 2.1x in 1Q16, compared to current and long-term DE ratios of 1.65x and 2.3x, respectively, in 4Q15. The company reported a free cash flow of $311.0 million in 1Q16.
In the next part of this series, we’ll discuss Bunge Limited.