What drives this packaging producer?
International Paper makes packaging products, with operations centered on paper-based materials used to ship and protect goods. The business serves customers that need high-volume packaging and container solutions. As a large, established operator in packaging, it runs an asset-heavy footprint where mills and converting facilities matter to day-to-day output. Its scale is reflected in a market value around USD 20.4 billion.
Are rising revenues masking weak margins?
FundamentalsFor 2025, reported in USD, revenue was about USD 23.6 billion, up 26.9% year over year. Even with a 29.32% gross margin over the trailing period, profitability was weak on an operating basis, with a -11.81% operating margin and a -12.00% net profit margin.
Capital intensity shows up clearly in the cash uses: depreciation and amortization was about USD 2.9 billion, alongside capital spending of roughly USD 1.9 billion in the same period. Total debt stood at about USD 2.0 billion at year-end, while ROE over the trailing period was -20.44%.
Is the market overpaying for losses?
DCF / MultiplesAt USD 38.58 per share, the stock trades well above the DCF outputs, which are negative across the modeled range. On headline pricing, the stock trades around 1.09x sales and 14.57x EV/EBITDA on a trailing basis.
Profitability must recover soon
TakeawayThe balance sheet looks lightly levered, but earnings are the strain point. High depreciation and steady capex make weak margins harder to absorb. For this to work, profitability needs to normalize without higher borrowing. If losses persist, resilience becomes a question of time and cash.