NYSE:IRM

Stock Analysis Report

Executive Summary

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services.


Snowflake Analysis

Established dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Iron Mountain's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.0%

IRM

0.3%

US REITs

2.4%

US Market


1 Year Return

-31.9%

IRM

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: IRM underperformed the US REITs industry which returned -23.9% over the past year.

Return vs Market: IRM underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

IRMIndustryMarket
7 Day11.0%0.3%2.4%
30 Day-16.5%-22.2%-11.0%
90 Day-20.2%-24.2%-19.4%
1 Year-26.2%-31.9%-16.9%-20.3%-8.1%-10.0%
3 Year-13.8%-30.2%-2.8%-15.0%17.3%9.6%
5 Year-5.3%-32.3%15.9%-7.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is Iron Mountain's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Iron Mountain undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRM ($24.66) is trading below our estimate of fair value ($62.51)

Significantly Below Fair Value: IRM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IRM is poor value based on its PE Ratio (26.5x) compared to the REITs industry average (23x).

PE vs Market: IRM is poor value based on its PE Ratio (26.5x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: IRM is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: IRM is overvalued based on its PB Ratio (4.8x) compared to the US REITs industry average (1.2x).


Next Steps

Future Growth

How is Iron Mountain forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRM's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).

Earnings vs Market: IRM's earnings (12.2% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: IRM's earnings are forecast to grow, but not significantly.

Revenue vs Market: IRM's revenue (2.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: IRM's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IRM's Return on Equity is forecast to be very high in 3 years time (44.1%).


Next Steps

Past Performance

How has Iron Mountain performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRM has high quality earnings.

Growing Profit Margin: IRM's current net profit margins (6.3%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: IRM's earnings have grown by 16.5% per year over the past 5 years.

Accelerating Growth: IRM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IRM had negative earnings growth (-27%) over the past year, making it difficult to compare to the REITs industry average (4.3%).


Return on Equity

High ROE: IRM's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Iron Mountain's financial position?


Financial Position Analysis

Short Term Liabilities: IRM's short term assets ($1.2B) do not cover its short term liabilities ($1.9B).

Long Term Liabilities: IRM's short term assets ($1.2B) do not cover its long term liabilities ($10.3B).


Debt to Equity History and Analysis

Debt Level: IRM's debt to equity ratio (542.2%) is considered high.

Reducing Debt: IRM's debt to equity ratio has increased from 531.6% to 542.2% over the past 5 years.

Debt Coverage: IRM's debt is not well covered by operating cash flow (11.6%).

Interest Coverage: IRM's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Iron Mountain's current dividend yield, its reliability and sustainability?

10.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRM's dividend (10.03%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: IRM's dividend (10.03%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

Stable Dividend: IRM's dividends per share have been stable in the past 10 years.

Growing Dividend: IRM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.7%), IRM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRM's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Bill Meaney (59yo)

7.25s

Tenure

US$11,287,272

Compensation

Mr. William L. Meaney, also known as Bill, BSc, MEng, MSIA, serves as Director of State Street Corporation since March 29, 2018. Mr. Meaney serves as Director at State Street Bank and Trust Company (Boston ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD11.29M) is above average for companies of similar size in the US market ($USD7.61M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Meaney
President7.25yrsUS$11.29m0.065% $4.6m
Fidelma Russo
EVP & CTO3.08yrsUS$1.79m0.010% $711.3k
Ernest Cloutier
EVP & GM of Global Records and Information Management5.83yrsUS$2.79m0.026% $1.9m
Barry Hytinen
Executive VP & CFO0.25yrno datano data
John Tomovcsik
Executive VP & Chief Operating Officer2.25yrsUS$1.46m0.026% $1.8m
Daniel Borges
Chief Accounting Officer & Senior VP2.5yrsno data0.0024% $173.9k
Kimberly Anstett
Chief Information Officerno datano datano data
Greer Aviv
Senior Vice President of Investor Relations1.5yrsno datano data
Deborah Marson
Executive VP3.33yrsno data0.013% $952.7k
Christian Potts
Senior Manager of Corporate Communicationsno datano datano data

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: IRM's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Meaney
President7.25yrsUS$11.29m0.065% $4.6m
Paul Deninger
Independent Director9.58yrsUS$257.31k0.023% $1.6m
Kent Dauten
Independent Director22.42yrsUS$275.50k0.70% $49.6m
Walter Rakowich
Independent Director6.67yrsUS$268.50k0.0081% $575.7k
Per-Kristian Halvorsen
Independent Director10.58yrsUS$252.50k0.0082% $583.5k
Clarke Bailey
Independent Director22.25yrsUS$272.07k0.053% $3.7m
Alfred Verrecchia
Independent Chairman7.08yrsUS$377.00k0.0058% $410.3k
Theodore Antenucci
Independent Director8.83yrsUS$253.50k0.0034% $241.4k
Pamela Arway
Independent Director5.92yrsUS$279.12k0.0088% $623.3k
Jennifer Allerton
Independent Director5.58yrsUS$253.50k0.0047% $335.1k

8.0yrs

Average Tenure

64yo

Average Age

Experienced Board: IRM's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Iron Mountain Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Iron Mountain Incorporated
  • Ticker: IRM
  • Exchange: NYSE
  • Founded: 1951
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$7.099b
  • Shares outstanding: 287.87m
  • Website: https://www.ironmountain.com

Number of Employees


Location

  • Iron Mountain Incorporated
  • One Federal Street
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRMNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1997
I5MDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1997
0JDPLSE (London Stock Exchange)YesCommon StockGBUSDJul 1997
I1RM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across nearly 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 00:59
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.