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    International Paper (IP) Could Be 5% Undervalued After Texas Plant Closure

    Simply Wall St·07/18/2026 21:29:43
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    International Paper (IP) is back in focus after confirming the permanent closure of its Carrollton South packaging facility in Texas by the end of Q3 2026. The move affects 64 employees and reinforces its broader restructuring story.

    See our latest analysis for International Paper.

    International Paper’s share price has been under pressure, with the stock down 6.68% year to date, while a 3.87% 1 month share price return and 34.90% 3 year total shareholder return suggest longer term sentiment has been more resilient despite restructuring headlines and recent operational disruptions.

    If this restructuring story has you thinking about where else capital could work hard, it may be worth scanning opportunities in 33 power grid technology and infrastructure stocks

    The Carrollton closure, board refresh and weather hit at Pine Hill all point to a business under active repair rather than a simple swing in mood. How much of International Paper’s current valuation really reflects that difference?

    Most Popular Narrative: 4.6% Undervalued

    International Paper’s most followed narrative puts fair value at $39.36 per share, slightly above the last close of $37.56 and framing the current restructuring through a valuation lens.

    The analysts have a consensus price target of $39.36 for International Paper based on their expectations of its future earnings growth, profit margins and other risk factors.

    We always encourage you to reach your own conclusions though. Sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.

    Read the complete narrative.

    Want to see what underpins that fair value gap for International Paper? The core of this narrative is a sharp earnings swing, a steadier revenue line, and a future profit multiple that assumes real progress on margins and cash generation. Curious which specific profit and growth assumptions have to hold for this pricing to be supported? The full breakdown sets out every step in the model.

    Result: Fair Value of $39.36 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this International Paper narrative still relies on mill reliability improving and European pricing holding up. Both areas are vulnerable to setbacks that could quickly challenge those valuation assumptions.

    Find out about the key risks to this International Paper narrative.

    Next Steps

    With sentiment on International Paper clearly split between concern and optimism, it makes sense to move quickly, review the same data and test your own assumptions against the 3 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond International Paper?

    Do not stop with International Paper. Broaden your watchlist with fresh ideas so you are not relying on a single restructuring story to shape your portfolio.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.