News about International Paper

International Paper (IP) shares rose 7.6% on Thursday as of 2:28 p.m. EDT, after falling roughly 20% year-to-date. Two private equity firms may bid for its European business, formerly DS Smith, which could sell for less than $6 billion, a 40% discount to the $9.9 billion paid in 2024. The European segment has posted steady operating losses, and the company carries about $8.5 billion in net debt. However, North American revenue fell 4.5% and operating income fell 26.4% last quarter, so the article suggests today's bounce could be a one-off.

International Paper (NYSE:IP) shares rose 7.6% on reports that two private equity firms may bid for its European business, formerly DS Smith, after the stock had fallen roughly 20% year-to-date. The Financial Times reported the total sale could be under $6 billion, a 40% discount to the $9.9 billion International Paper paid in 2024. Even at that loss, a sale would ease the company's roughly $8.5 billion in net debt and remove a segment with steady operating losses. The article notes, however, that the North American business is still struggling, with revenue down 4.5% and operating income down 26.4% last quarter, so the rebound could prove a one-off unless conditions improve.

The StockStory article says the industrials sector fell 5.6% over the past six months, while the S&P 500 gained 12.8%. It lists Lucid (LCID), with a market cap of $1.49 billion, a negative 135% gross margin, cash burn and possible dilution, trading at $3.80 per share or 0.7x forward price-to-sales; and International Paper (IP), with a market cap of $17.01 billion, revenue growth averaging 2.5% a year over five years, EPS down 16% annually, shrinking returns on capital, trading at $32.31 or 14.7x forward P/E. It also highlights Vertiv (VRT), with a market cap of $93.47 billion, citing average organic revenue growth of 24.2% a year over two years, a 32.1 percentage point rise in free cash flow margin over five years, and growing returns on capital.