International Paper Company (IP) has a market cap of $19.0 billion. It fell 2.3% to close at $45.72 per share on October 11, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.9%, -5.2%, and 25.3%, respectively, on the same day.
IP is trading 4.3% below its 20-day moving average, 3.7% below its 50-day moving average, and 10.6% 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 3.3% on October 11.
The market caps of International Paper’s competitors are as follows:
- Packaging Corporation of America (PKG): $7.6 billion
- Domtar Corp. (UFS): $2.4 billion
- KapStone Paper and Packaging (KS): $1.9 billion
International Paper declared dividend
International Paper has declared a regular quarterly dividend of $0.4625 per share, a rise of 5.0%, on its common stock. The dividend will be paid on December 15, 2016, to shareholders of record at the close of business on November 15, 2016.
Performance of International Paper in 2Q16
International Paper (IP) reported 2Q16 net sales of $5.3 billion, a fall of 7.0% compared to net sales of $5.7 billion in 2Q15. Sales from its Industrial Packaging and Consumer Packaging segments fell 2.6% and 37.1%, respectively, and sales from its Printing Papers segment rose 1.8% in 2Q16 compared to 2Q15. 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 to $227.0 million and $0.54, respectively, in 2Q15.
IP’s cash and temporary investments rose 19.4%, and its inventories fell 2.8% in 2Q16 compared to 4Q15. Its current ratio rose to 1.68x and its long-term debt-to-equity ratio fell to 2.2x in 2Q16, compared to a current ratio and long-term debt-to-equity ratio of 1.65x and 2.3x, respectively, in 4Q15. The company reported free cash flow of $527.0 million in 2Q16, a rise of 3.1% compared to 2Q15.
Next, we’ll look at Procter & Gamble (PG).