Is International Paper’s Scale Now Limiting Capital Allocation Effectiveness And Profitability Potential (IP)?

Recent research on International Paper highlights that its large scale may now be a constraint, with below-average revenue growth, falling earnings per share and weaker returns on invested capital suggesting past and current investments have not translated into stronger performance. This has raised fresh questions about the effectiveness of management’s capital allocation and the company’s ability to reinvigorate profitability after earlier spending and footprint changes. Next, we’ll examine...