International Paper (IP) rose by 1.5% to close at $45.81 per share during the fourth week of July 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.5%, 11.3%, and 24.4%, respectively, as of July 29. IP is trading 3.9% above its 20-day moving average, 7.1% above its 50-day moving average, and 15.5% 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 3.0% on July 29.
The market caps of International Paper’ competitors are as follows:
- Packaging Corporation of America (PKG) — $7.0 billion
- Domtar (UFS) — $2.5 billion
- KapStone Paper and Packaging (KS) — $1.4 billion
Performance of International Paper in 2Q16
International Paper reported 2Q16 net sales of $5.3 billion, a fall of 7.0% from the net sales of $5.7 billion in 2Q15. Sales from the industrial packaging and consumer packaging segments fell by 2.6% and 37.1%, respectively, and sales from printing papers segment rose by 1.8% between 2Q15 and 2Q16. It reported net losses on sales and impairment of businesses of $28.0 million in 2Q16.
Its net income and EPS (earnings per share) fell to $40.0 million and $0.10, respectively, in 2Q16, compared with $227.0 million and $0.54 in 2Q15.
IP’s cash and temporary investments rose by 19.4% and its inventories fell by 2.8% between 4Q15 and 2Q16. Its current ratio rose to 1.68x and its long-term debt-to-equity ratio fell to 2.2x in 2Q16, compared with 1.65x and 2.3x, respectively, in 4Q15. It reported free cash flow of $527.0 million in 2Q16, a rise of 3.1% from 2Q15.
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.
In the next part, we’ll take a look at Monro Muffler Brake.