International Paper Operating Margin vs. Cash And Equivalents

IP Stock  USD 58.83  0.45  0.77%   
Considering International Paper's profitability and operating efficiency indicators, International Paper's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess International Paper's ability to earn profits and add value for shareholders.

International Paper Operating Profit Margin

0.0641

As of 11/29/2024, Sales General And Administrative To Revenue is likely to grow to 0.09, while Price To Sales Ratio is likely to drop 0.52. At this time, International Paper's Operating Income is relatively stable compared to the past year. As of 11/29/2024, Net Income From Continuing Ops is likely to grow to about 1.2 B, though Total Other Income Expense Net is likely to grow to (765.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.220.2795
Significantly Down
Pretty Stable
Net Profit Margin0.02580.0152
Way Up
Very volatile
Operating Profit Margin0.06410.0628
Fairly Up
Pretty Stable
Pretax Profit Margin0.01920.0202
Notably Down
Very volatile
Return On Assets0.02130.0124
Way Up
Very volatile
Return On Equity0.03270.0345
Notably Down
Pretty Stable
For International Paper profitability analysis, we use financial ratios and fundamental drivers that measure the ability of International Paper to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well International Paper utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between International Paper's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of International Paper over time as well as its relative position and ranking within its peers.
  

International Paper's Revenue Breakdown by Earning Segment

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To learn how to invest in International Stock, please use our How to Invest in International Paper guide.
Is Paper & Plastic Packaging Products & Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of International Paper. If investors know International will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about International Paper listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.11)
Dividend Share
1.85
Earnings Share
1.17
Revenue Per Share
53.745
Quarterly Revenue Growth
0.016
The market value of International Paper is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Paper's value that differs from its market value or its book value, called intrinsic value, which is International Paper's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because International Paper's market value can be influenced by many factors that don't directly affect International Paper's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between International Paper's value and its price as these two are different measures arrived at by different means. Investors typically determine if International Paper is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Paper's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

International Paper Cash And Equivalents vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining International Paper's current stock value. Our valuation model uses many indicators to compare International Paper value to that of its competitors to determine the firm's financial worth.
International Paper is rated below average in operating margin category among its peers. It is currently regarded as number one stock in cash and equivalents category among its peers creating about  15,000,000,000  of Cash And Equivalents per Operating Margin. At this time, International Paper's Operating Profit Margin is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value International Paper by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

International Cash And Equivalents vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

International Paper

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

International Paper

Cash

 = 

Bank Deposits

+

Liquidities

 = 
804 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

International Cash And Equivalents Comparison

International Paper is currently under evaluation in cash and equivalents category among its peers.

International Paper Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in International Paper, profitability is also one of the essential criteria for including it into their portfolios because, without profit, International Paper will eventually generate negative long term returns. The profitability progress is the general direction of International Paper's change in net profit over the period of time. It can combine multiple indicators of International Paper, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.6 B-1.6 B
Operating Income1.2 B1.7 B
Income Before Tax382 M362.9 M
Total Other Income Expense Net-806 M-765.7 M
Net Income288 M273.6 M
Income Tax Expense59 M56 M
Net Income Applicable To Common Shares1.7 B1.1 B
Net Income From Continuing Ops757 M1.2 B
Non Operating Income Net Other-18.4 M-17.5 M
Interest Income166 M207.7 M
Net Interest Income-238 M-249.9 M
Change To Netincome-292.5 M-277.9 M
Net Income Per Share 0.83  1.36 
Income Quality 6.36  3.56 
Net Income Per E B T 0.75  0.41 

International Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on International Paper. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of International Paper position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the International Paper's important profitability drivers and their relationship over time.

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Additional Tools for International Stock Analysis

When running International Paper's price analysis, check to measure International Paper's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy International Paper is operating at the current time. Most of International Paper's value examination focuses on studying past and present price action to predict the probability of International Paper's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move International Paper's price. Additionally, you may evaluate how the addition of International Paper to your portfolios can decrease your overall portfolio volatility.