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Is this Large Market Cap Stock target price reasonable for International Paper Company (NYSE:IP)?

The company in question is, International Paper Company (NYSE:IP) currently with a stock price of 45.19 (-1.08% today). The market cap for International Paper Company is 18911.52, and is in the sector Consumer Goods, and Packaging & Containers industry. The target price for International Paper Company is 46.6. Currently International Paper Company is trading with a P/E of 19.77, and a forward P/E of 12.52. Average volume for International Paper Company is 2898.12 and so far today it is 1264165.

Performance in the last year for International Paper Company has been 0.63%. For EPS growth, International Paper Company has seen a growth of 68.90%, and is looking to grow in the next year to 5.86%. More long term stats show that EPS growth has been 7.00% over the last five years and could be 6.36% for the next five years. International Paper Company has seen sales growth quarter over quarter at -7.40%, with EPS growth quarter over quarter at 10.80%. The 20-day simple moving average is 6.04%, with the 200-day simple moving average coming to 14.08%.

Since the IPO date for International Paper Company on the 1/2/1970, International Paper Company has seen performance year to date to be 24.04%. With International Paper Company trading at 45.19, the dividend yield is 3.85%, and the EPS is 2.31.

So could International Paper Company, be undervalued? Well as said before P/E is 19.77. The PEG is 3.11, P/S is 0.86 and the P/B is at 4.47. The P/cash is 16.37, with P/free cash flow at 106.24.

International Paper Company ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 1.1. This is with long term debt/equity at 2.08, and total debt/equity at 2.21.

In terms of margins, International Paper Company has a gross margin of 30.60%, an operating margin of 8.70% and a profit margin of 4.40%.Payout ratio for International Paper Company is 72.70%. Return on assets come to 3.10% with return on investment coming to 11.50%.

Insider ownership for International Paper Company, is at 0.50% and institutional ownership comes to 86.20%. Outstanding shares are at 414. While shares float is 409.1. The float short is currently 2.65%, and short ratio is 3.74.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Peter Clarke

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