International PaperAmcor

International Paper vs Amcor

This page compares International Paper and Amcor plc, offering a neutral overview of their business models, financial performance, and market context to help readers understand how both companies oper...

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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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Investment Analysis

Pros

  • International Paper has a significant market presence, accounting for about one third of the North American corrugated packaging market.
  • The company is focused on operational restructuring, including strategic divestitures and facility closures to improve profitability and focus on core areas.
  • It offers a robust dividend yield of around 5%, providing income to shareholders despite current earnings challenges.

Considerations

  • The company reported a net loss of $1.28 billion trailing twelve months, reflecting ongoing profitability challenges.
  • Recent earnings included accelerated depreciation charges related to mill closures, indicating substantial restructuring costs and pressure on margins.
  • Its stock price has declined significantly from its 52-week high, reflecting market concerns over demand softness and competitive pressures in packaging.
Amcor

Amcor

AMCR

Pros

  • Amcor has demonstrated strength in several key financial metrics compared to industry peers, suggesting operational efficiency and stability.
  • The company continues to return capital to shareholders, maintaining attractiveness for income-focused investors.
  • It benefits from global diversification in packaging solutions which can cushion against region-specific downturns.

Considerations

  • Amcor’s stock price has declined sharply year-to-date and over longer time horizons, reflecting investor concerns about growth and earnings performance.
  • Recent earnings, while showing revenue growth, missed analyst expectations, prompting mixed sentiment among institutional investors.
  • The company faces cyclical and macroeconomic risks in packaging demand, impacting near-term financial performance.

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