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DESCRIPTION OF BUSINESS International Paper Company (the "Company," "International Paper" or "IP", which may also be referred to as "we" or "us") is a global leader in sustainable packaging solutions. We produce renewable fiber-based packaging products with manufacturing operations in North America, Latin America, Europe and North Africa.
Margins and capital returns are both well above average: 20.93% operating margin, ROIC at 19.70%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 49.3% YoY with margins expanding 3.7pp. However, free cash flow softened 121%, worth monitoring whether this is timing or structural.
Free cash flow declined 121% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$159M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$24.34B
▲ +49.3% YoY
Net Income (TTM)
-$3.35B
▼ -731.2% YoY
Op. Margin
21.33%
▲ +3.7pp YoY
ROIC
15.27%
▲ +4.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$553M
▼ -121.0% YoY
Op. Cash Flow (TTM)
$2.60B
▲ +1.2% YoY
Net Debt
$8.59B
Cash & Equiv.
$1.24B
5Y CAGR: +6.1%
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