Iron Mountain (IRM): Evaluating Valuation as Shares Trend Higher After a Steady Month

Iron Mountain (IRM) shares have edged higher recently, with the stock gaining 1% in the past week and about 4% over the past month. Investors seem to be considering recent performance as part of a generally steady market backdrop.

See our latest analysis for Iron Mountain.

Iron Mountain’s share price has been drifting higher, reflecting some renewed interest after a bumpy year. Its 1-year total shareholder return is down nearly 15%, but the 3-year total return stands at a remarkable 134%, showing the company’s longer-term growth story remains compelling. Momentum appears to be rebuilding as recent gains suggest risk appetite may be returning for this resilient storage REIT.

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The question for investors is clear. With shares now back in favor and solid gains over the past three years, is Iron Mountain undervalued and primed for more upside, or is future growth already fully reflected in the price?

Most Popular Narrative: 8.1% Undervalued

With Iron Mountain’s last close at $105.23 and the most widely followed narrative pinning fair value at $114.5, the stock still trades below consensus expectations. The narrative highlights surging digital and AI-driven business lines versus ongoing risks around legacy storage and leverage, and sets a high bar for future earnings power.

Iron Mountain is seeing robust double-digit growth in its Data Center and Digital Solutions businesses, fueled by surging demand for AI, cloud infrastructure, and the management of complex unstructured data. These trends are expected to increase high-margin recurring revenue and drive earnings growth. Increasing corporate and regulatory emphasis on data privacy, compliance, and risk management is boosting demand for secure records retention and end-to-end asset lifecycle services, providing stable, predictable revenue streams and supporting margin expansion.

Read the complete narrative.

Curious what’s behind this ambitious fair value? The growth expectations require major leaps in digital revenue, fatter profit margins, and a future profit multiple typically seen among technology leaders. Ready to see which bold assumptions and quantitative leaps power this narrative valuation? Dive in to unravel the surprising projections.

Result: Fair Value of $114.5 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, downside risks remain. These include increased competition in digital services and the possibility that legacy storage revenue may decline faster than analysts expect.

Find out about the key risks to this Iron Mountain narrative.

Build Your Own Iron Mountain Narrative

Feel free to take a closer look at the underlying numbers and shape your own Iron Mountain outlook in just a few minutes. Your perspective might reveal new insights. Do it your way

A great starting point for your Iron Mountain research is our analysis highlighting 3 key rewards and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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