IP Stock Analysis — International Paper
Sector: Industrials
AI Verdict
IP trades at 22.1x next year's earnings—expensive for a shrinking business—so unless its scale moat delivers a turnaround, you're paying a premium the numbers don't yet support.
Competitive Moat
International Paper operates one of the largest integrated pulp and paper supply chains in North America, giving it scale advantages in procurement and distribution. Its long-term customer contracts and ownership of forest assets help buffer against commodity price swings, but the business remains cyclical and exposed to global packaging demand.
Summary
IP's RSI of 30.6 signals the stock is oversold after a -27.64% one-year return, putting it on watch for a potential rebound.
Where It Stands
With a -27.64% one-year return, an RSI of 30.6 (oversold), and a forward P/E of 22.1x versus the industrials median of 20x, IP is priced above peers despite recent underperformance.
Key Metrics
- RSI: 30.6 — Near Oversold
- Forward P/E: 22.1x
- Revenue Growth: -0.1%
- Market Cap: $16.8B
- Dividend Yield: 0.06%
- 1-Year Return: -27.64%
- 52-Week High: $56.13
- 52-Week Low: $29.45
Analyst Consensus
14 Buy · 6 Hold · 1 Sell (21 analysts)
Bull Case
The RSI at 30.6 suggests shares are washed out and may be due for a technical bounce if sentiment shifts.
Bear Case
Paying 22.1x forward earnings for a company with -5.8% trailing revenue growth risks further downside if the multiple compresses to the sector median, implying a potential 10%+ valuation drop.
Catalyst to Watch
Watch for quarterly earnings or packaging demand updates—any sign of stabilizing revenue could trigger a re-rating.