Iron Mountain (IRM): Is the Stock Undervalued After Dividend Hike and Q3 Return to Profitability?

Iron Mountain (IRM) just posted its third quarter results, showing both a revenue increase and a shift back to profitability. The company also announced a 10% dividend boost and reaffirmed solid guidance for the rest of 2025.

See our latest analysis for Iron Mountain.

Iron Mountain’s latest 90-day share price return of 16.3% suggests momentum has shifted solidly to the upside following last year’s lackluster stretch, even though the stock’s 1-year total shareholder return is still down nearly 10%. With improved profitability and a bigger dividend catching attention, investors seem to be warming back up to the company’s long-term growth story, which is underscored by an impressive 409% total return over five years.

If you’re interested in what else is catching investors’ eyes as confidence rebounds, this is a great opportunity to discover fast growing stocks with high insider ownership

The question now is whether Iron Mountain’s turnaround and robust outlook signal a compelling buying opportunity for investors, or if the recent rally means the stock is already factoring in all its future growth.

Most Popular Narrative: 10.6% Undervalued

Iron Mountain’s narrative fair value of $116.45 stands notably above its latest closing price of $104.12, pointing to meaningful upside if the storyline holds true. Analysts see accelerating growth drivers at the company’s core and have updated their fair value estimate accordingly.

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.

Read the complete narrative.

Curious what earnings and revenue growth rates analysts are baking in to support this valuation? The secret lies in Iron Mountain's transformation from legacy storage leader into a digital growth engine. Want the specific financial numbers and bold forecasts that justify this premium? Unlock the details and be surprised at how ambitious the expectations for margin and profit growth really are.

Result: Fair Value of $116.45 (UNDERVALUED)

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

However, there are still notable risks. Increased competition in digital markets and elevated debt levels could challenge Iron Mountain’s growth story ahead.

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

Build Your Own Iron Mountain Narrative

If the current narrative does not quite match your perspective, you can easily explore the underlying data and build your own in just a few minutes. Do it your way

A great starting point for your Iron Mountain research is our analysis highlighting 4 key rewards and 4 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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