Business Analysis of International Paper

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of International Paper

INTERNATIONAL PAPER

Business Overview

International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, Africa, and the Middle East. The company operates through four segments: Industrial Packaging, Global Cellulose Fibers, Printing Papers, and Consumer Packaging. The Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. The Global Cellulose Fibers segment provides fluff, market, and specialty pulps that are used in absorbent hygiene products, tissue and paper products, and non-absorbent end applications. The Printing Papers segment produces printing and writing papers, such as uncoated papers for end use applications, including brochures, pamphlets, greeting cards, books, annual reports, and direct mail, as well as envelopes, tablets, business forms, and file folders. This segment sells uncoated papers under the Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol, and Svetocopy brand names. The Consumer Packaging segment offers coated paperboards for various packaging and foodservice end uses, such as food, cosmetics, pharmaceuticals, and tobacco products under the Everest, Fortress, and Starcote brand names. This segment also produces cups, lids, food containers, and plates. The company sells its packaging products, paper products, and other products directly to end users and converters, as well as through agents, resellers, and paper distributors. International Paper Company was founded in 1898 and is headquartered in Memphis, Tennessee.

International Paper

International Paper


R&P Rank: 127
Sector: Industrial Goods & Services
Industry:Containers & Packaging
H.Q Location:Tennessee
Website: www.internationalpaper.com
Company Address:
6400 POPLAR AVENUE, MEMPHIS TN 38197
Ph:901-419-7000

Business Analysis of International Paper

The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how International Paper compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by International Paper to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of International Paper with an interactive chart.

  1. Revenue Growth: International Paper reported a revenue growth of -5.8% year-on-year during 2016. Containers & Packaging Industry grew at 2.9% in the same period
  2. COGS share of Revenues: As a percentage of revenue, International Paper spent 71.9% of its total revenues on COGS. Containers & Packaging industry average (COGS share of revenue) in the same period was 77.3%
  3. R&D share of Revenues: International Paper R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, International Paper spent 13.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Containers & Packaging industry average SG&A spending in the same period was 11.5%
  5. Inventory share of Revenues: As a percentage of revenue, International Paper spent 11.6% of its total revenues on Inventories. Containers & Packaging industry average Inventory spending in the same period was 12.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, International Paper invested 11.0% of its total revenues on Accounts Payable (A/P) Containers & Packaging industry average Accounts Payable investment in the same period was 13.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, International Paper invested 14.2% of its total revenues on Accounts Receivable (A/R). Containers & Packaging industry average Accounts Receivable investment in the same period was 12.9%
  8. PP&E share of Revenues: As a percentage of revenue, International Paper invested 68.5% of its total revenues on Property, Plants, and Equipments (PP&E). Containers & Packaging industry average PPE investment in the same period was 42.4%
  9. Intangibles share of Revenues: As a percentage of revenue, International Paper invested 16.0% of its total revenues on Intangibles. Containers & Packaging industry average Intangibles investment in the same period was 32.5%
  10. Net Margins: International Paper Net Margins in the year 2016 were 4.3%. Containers & Packaging industry average Net Margins in the same period were 3.4%

Sector and Industry Association of International Paper

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

International Paper is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Containers & Packaging Industry.

Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:

  • Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
  • Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
  • Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
  • Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
  • Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.

Industry Ranking of International Paper

With $21.1 billion revenues, International Paper ranked number 1 of all the companies in the US Containers & Packaging industry. There were a total of 35 public companies in the US Containers & Packaging industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Containers & Packaging industry by revenues during 2016 were:

  1. International Paper ($21.1 billion)
  2. WestRock ($14.2 billion)
  3. Ball ($9.1 billion)
  4. Veritiv ($8.3 billion)
  5. Crown Holdings ($8.3 billion)
  6. Sealed Air ($6.8 billion)
  7. Owens-Illinois ($6.7 billion)
  8. Berry Plastics Group ($6.5 billion)
  9. Avery Dennison ($6.1 billion)
  10. Packaging Corporation Of America ($5.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of International Paperand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of international-paper

WestRock (WRK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

WestRock Co with $14 billion revenues in the year 2016 was the number 2 Containers & Packaging company. Read this report to know the top competitors of WestRock and identify growth and cost optimization opportunities of WestRock

Ball (BLL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ball Corp with $9 billion revenues in the year 2016 was the number 3 Containers & Packaging company. Read this report to know the top competitors of Ball and identify growth and cost optimization opportunities of Ball

Veritiv (VRTV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Veritiv Corp with $8 billion revenues in the year 2016 was the number 4 Containers & Packaging company. Read this report to know the top competitors of Veritiv and identify growth and cost optimization opportunities of Veritiv

Crown Holdings (CCK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Crown Holdings Inc with $8 billion revenues in the year 2016 was the number 5 Containers & Packaging company. Read this report to know the top competitors of Crown Holdings and identify growth and cost optimization opportunities of Crown Holdings

Sealed Air (SEE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sealed Air Corp with $7 billion revenues in the year 2016 was the number 6 Containers & Packaging company. Read this report to know the top competitors of Sealed Air and identify growth and cost optimization opportunities of Sealed Air

Owens-Illinois (OI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Owens-Illinois Inc with $7 billion revenues in the year 2016 was the number 7 Containers & Packaging company. Read this report to know the top competitors of Owens-Illinois and identify growth and cost optimization opportunities of Owens-Illinois

Revenues Analysis

International Paper (IP) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of International Paper Co (IP) from 2012 to 2016. International Paper generated a total of $21.1 billion revenues during 2016. International Paper reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

International Paper (IP) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of International Paper Co (IP) from 2002 to 2016. International Paper generated a total of $21.1 billion revenues during 2016. International Paper reported a revenue growth of -5.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

International Paper (IP) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of International Paper Co (IP) revenue growth with Containers & Packaging industry growth during the last five years from 2012 to 2016. International Paper reported a revenue growth of -5.8% year-over-year during 2016. The Containers & Packaging industry growth was 2.9% year-over-year during 2016. International Paper growth was slower than the industry during 2016.

Profit Analysis

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