IP
International Paper Co
Industrial/Transportation
12/02/2013
Presented
| Date | 11/26/2013 |
| Price | $46.90 |
| Market Cap | $20.80B |
| Ent Value | $30.90B |
| P/E Ratio | 42.86x |
| Book Value | $12.18 |
| Div Yield | 2.9% |
| Shares O/S | 443.62M |
| Ave Daily Vol | 3,890,000 |
| Short Int | 2.08% |
Current
| Price | $47.74 |
| Market Cap | $16.58B |
| International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and North Africa. The company's Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Its Printing Papers segment produces printing and writing papers, such as uncoated and coated papers used in copiers, desktop, and laser printers, and digital imaging; pulp for use in the manufacture of printing, writing, and specialty papers, as well as towel and tissue products, and filtration products; and uncoated bristols. The company's Consumer Packaging segment offers coated paperboard for various packaging and commercial printing end uses, such as food, cosmetics, pharmaceuticals, computer software, tobacco products, greeting cards, paperback book covers, lottery tickets, direct mail, and point-of-purchase advertising under the Everest, Fortress, Starcote, and Carolina brands. This segment also produces cups, lids, food containers, and plates. Its Distribution segment distributes products and services to various customer markets, including commercial printers with printing papers and graphic pre-press, printing presses, and post-press equipment; building services and away-from-home markets with facility supplies; and manufacturers with packaging supplies and equipment, as well as offers warehousing and delivery services. The company, through its joint venture with Ilim Holding S.A., operates a pulp and paper business in Russia. International Paper Company sells its paper, packaging products, and other products directly to end users and converters, as well as through agents, resellers, and paper distributors. The company was founded in 1898 and is based in Memphis, Tennessee. |
Highlights
The containerboard industry failed to return its cost of capital from 1990 to 2005, when a series of deals consolidated the industry and concentrated market share among a handful of companies. Today the top four companies control about 75% of market share for this commodity product, and continue to benefit from a wave of price increases that have resulted in current pricing of $1,000 per ton, up from just $300 during the financial crisis. The presenter, however, believes that the industry stands at an inflection point and is on the cusp of pricing declines that will disproportionately impact the bottom lines of players including International Paper, KapStone, and Rock-Tenn.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.