International PaperDow

International Paper vs Dow

This page compares International Paper and Dow Inc., examining their business models, financial performance, and market context. It presents neutral analysis of how each company creates value, their c...

Which Baskets Do They Appear In?

Green Packaging Investment Theme: 18 Stocks (2025)

Green Packaging Investment Theme: 18 Stocks (2025)

International Paper's $1.5 billion sale of its cellulose fibers unit signals a strategic pivot to its core sustainable packaging business. This move highlights a broader industry trend of portfolio optimization, creating potential growth opportunities for companies focused on eco-friendly packaging solutions and related industries.

Published: August 22, 2025

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US Companies Shielded from Fed Tariff Stance 2025

US Companies Shielded from Fed Tariff Stance 2025

The Federal Reserve is holding interest rates steady, signaling that tariff-induced inflation is a primary concern, even over potential employment risks. This creates an investment opportunity in companies that are insulated from international trade disputes and can maintain pricing power during inflationary periods.

Published: August 21, 2025

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Navigating Persistent Inflation

Navigating Persistent Inflation

Recent data shows inflation remains stubbornly high, reducing the likelihood of Federal Reserve rate cuts. This environment favors companies with strong pricing power that can protect their profit margins by passing increased costs to consumers.

Published: July 31, 2025

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Fortress America: Insulated From Trade Wars

Fortress America: Insulated From Trade Wars

Puma's recent profit warning, driven by U.S. tariffs, highlights the significant financial risks associated with global trade disputes. This event underscores a potential investment opportunity in companies with primarily domestic supply chains that are better insulated from such geopolitical volatility.

Published: July 25, 2025

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Retail's Summer Sales Showdown

Retail's Summer Sales Showdown

Amazon has doubled Prime Day to four days, triggering an all-out battle among retailers. This carefully curated collection includes companies across the entire e-commerce ecosystem that stand to benefit from this intensified period of summer spending.

Published: July 3, 2025

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Investment Analysis

Pros

  • International Paper has a large market cap of over $19 billion supporting its global operations in renewable fiber-based packaging and pulp products.
  • The company showed 28% sequential adjusted EBITDA improvement in Q3 2025 driven by price realisation, cost management, and lower fiber costs.
  • IP pays a relatively high dividend yield of about 5.1%, providing income potential to investors.

Considerations

  • International Paper reported a large net loss of $1.1 billion in Q3 2025, impacted by accelerated depreciation and decommissioning costs.
  • The stock is trading at a high valuation premium with a price-to-earnings ratio significantly above sector averages, reflecting elevated investor expectations.
  • Demand softness and ongoing restructuring including mill closures expose IP to execution risks and ongoing profitability pressure.
Dow

Dow

DOW

Pros

  • Dow benefits from diversified operations in materials science with strong positions in packaging, chemicals, and specialty materials.
  • The company has been pursuing cost reduction and efficiency initiatives that support improved margins.
  • Dow shows resilience amid macroeconomic uncertainties with a solid balance sheet and access to robust cash flows.

Considerations

  • Dow faces cyclicality related to commodity price volatility and global economic fluctuations affecting chemical demand.
  • The company has regulatory and environmental compliance costs that can impact profitability, especially in chemicals manufacturing.
  • Despite cost initiatives, growth is challenged by competitive pressures and innovation demands in specialty segments.

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