• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    International Paper (IP): Evaluating Valuation After Plant Closures and Ongoing Restructuring Efforts

    Simply Wall St·12/14/2025 05:31:08
    语音播报

    International Paper (IP) is back in the spotlight after deciding to close two U.S. packaging plants by January, a move that underscores its broader restructuring push amid stubbornly soft demand.

    See our latest analysis for International Paper.

    Those restructuring moves help explain why sentiment has cooled. The share price is down sharply on a year to date basis, even after a modest 1 month share price return, while the 3 year total shareholder return remains solidly positive. This suggests long term holders are still ahead despite near term pressure.

    If plant closures have you rethinking where growth might come from next, it could be worth scanning fast growing stocks with high insider ownership for other companies where insiders are backing the story alongside shareholders.

    Against that backdrop, International Paper now trades at a meaningful discount to analyst targets and some estimates of intrinsic value. This raises the key question: is this a contrarian entry point, or is future growth already priced in?

    Most Popular Narrative Narrative: 19.8% Undervalued

    With the most followed narrative putting fair value near $48 versus a $38.54 close, International Paper is framed as a mispriced turnaround in progress.

    The analysts have a consensus price target of $54.325 for International Paper based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $63.0, and the most bearish reporting a price target of just $42.1.

    Read the complete narrative.

    Curious how a low margin, currently loss making business earns a rerating case built on rising sales, fatter margins and a richer earnings multiple? The narrative unpacks a full earnings rebuild, layer by layer, and shows how future profitability shifts the entire value picture.

    Result: Fair Value of $48.07 (UNDERVALUED)

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

    However, lingering mill reliability issues and a sluggish, oversupplied European containerboard market could still derail the upbeat margin and recovery expectations embedded in this narrative.

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

    Build Your Own International Paper Narrative

    If you see things differently or want to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

    A great starting point for your International Paper research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Consider exploring a wider range of stocks using the Simply Wall Street Screener.

    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.