Iron Mountain (NYSE:IRM) - Share price, News & Analysis

IRM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	0/6
Dividends	4/6

IRM Stock Overview

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

Rewards

Trading at 52.4% below our estimate of its fair value

Earnings are forecast to grow 6.02% per year

Earnings have grown 21.7% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 5.09% is not well covered by earnings or forecast to be in the next 3 years

Iron Mountain Competitors

International Business Machines

NYSE:IBM

US$119.6b

Waste Management

NYSE:WM

US$63.6b

Fiserv

NasdaqGS:FISV

US$60.9b

Fidelity National Information Services

NYSE:FIS

US$59.1b

Price History & Performance

Summary of all time highs, changes and price drops for Iron Mountain
Historical stock prices
Current Share Price	US$48.63
52 Week High	US$58.61
52 Week Low	US$41.67
Beta	0.85
1 Month Change	-13.87%
3 Month Change	13.07%
1 Year Change	13.09%
3 Year Change	53.26%
5 Year Change	38.63%
Change since IPO	666.20%

Recent News & Updates

Apr 29

Iron Mountain: To The Top

I can’t help but have an affinity for Iron Mountain. Since my initial investment in July of 2018, the security has a total return of 111%. Furthermore, as a former US Army 10th Mountain Division “Winter Warrior” Mountaineer, I feel like part of the team! “To The Top” is the 10th Mountain’s motto, and after reviewing Iron Mountain’s earnings release today, I believe that is exactly where the REIT is headed. In the following piece, I will expound on the key positives from the report and provide my thoughts on what may lie ahead for the name.

Apr 23

Iron Mountain: Sustainable Capital Allocation Amid Data Center Consolidation

In this high inflation environment where the cost of borrowing is expected to rise through the central bank's actions, it is important to assess the outlook for indebted REITs like Iron Mountain. For this purpose, I found that its diversification into data centers has not necessarily translated into higher debt issuance. It is also growing more rapidly and generating more returns than a larger incumbent, with the latest acquisition pointing towards more synergistic growth with other larger revenue segments. Thus, I value the company by taking into consideration the sales metric, which shows that a 13% upside is possible. The risk as seen on Friday when the stock suffered from a 1% downside is volatility following uncertainty about the way the Fed seems to be fighting inflation.

Shareholder Returns

	IRM	US REITs	US Market
7D	-6.3%	-0.3%	0.1%
1Y	13.1%	-2.8%	-12.7%

Return vs Industry: IRM exceeded the US REITs industry which returned -1.1% over the past year.

Return vs Market: IRM exceeded the US Market which returned -11.5% over the past year.

Price Volatility

Is IRM's price volatile compared to industry and market?
IRM volatility
IRM Average Weekly Movement	5.3%
REITs Industry Average Movement	4.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: IRM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IRM's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1951	25,000	Bill Meaney	https://www.ironmountain.com

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 approximately 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.

Iron Mountain Fundamentals Summary

How do Iron Mountain's earnings and revenue compare to its market cap?
IRM fundamental statistics
Market Cap	US$14.82b
Earnings (TTM)	US$446.92m
Revenue (TTM)	US$4.66b

31.6x

P/E Ratio

3.0x

P/S Ratio

Is IRM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IRM income statement (TTM)
Revenue	US$4.66b
Cost of Revenue	US$1.98b
Gross Profit	US$2.68b
Other Expenses	US$2.23b
Earnings	US$446.92m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.54
Gross Margin	57.45%
Net Profit Margin	9.59%
Debt/Equity Ratio	1,188.8%

How did IRM perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

110%

Payout Ratio

Does IRM pay a reliable dividends?

See IRM dividend history and benchmarks

When do you need to buy IRM by to receive an upcoming dividend?
Iron Mountain dividend dates
Ex Dividend Date	Jun 14 2022
Dividend Pay Date	Jul 06 2022
Days until Ex dividend	24 days
Days until Dividend pay date	46 days

Does IRM pay a reliable dividends?

See IRM dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: IRM ($48.63) is trading below our estimate of fair value ($102.2)

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

Price To Earnings Ratio

PE vs Industry: IRM is good value based on its PE Ratio (31.6x) compared to the US REITs industry average (33.5x).

PE vs Market: IRM is poor value based on its PE Ratio (31.6x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: IRM is poor value based on its PEG Ratio (5.3x)

Price to Book Ratio

PB vs Industry: IRM is overvalued based on its PB Ratio (18.6x) compared to the US REITs industry average (1.7x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

6.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRM's forecast earnings growth (6% per year) is above the savings rate (1.9%).

Earnings vs Market: IRM's earnings (6% per year) are forecast to grow slower than the US market (12.4% per year).

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

Revenue vs Market: IRM's revenue (5.2% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: IRM's revenue (5.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if IRM's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Iron Mountain performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IRM has high quality earnings.

Growing Profit Margin: IRM's current net profit margins (9.6%) are higher than last year (7.8%).

Past Earnings Growth Analysis

Earnings Trend: IRM's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: IRM's earnings growth over the past year (37.8%) exceeds its 5-year average (21.7% per year).

Earnings vs Industry: IRM earnings growth over the past year (37.8%) underperformed the REITs industry 69.5%.

Return on Equity

High ROE: Whilst IRM's Return on Equity (53.81%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Iron Mountain's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IRM's short term assets ($1.5B) do not cover its short term liabilities ($1.7B).

Long Term Liabilities: IRM's short term assets ($1.5B) do not cover its long term liabilities ($13.1B).

Debt to Equity History and Analysis

Debt Level: IRM's net debt to equity ratio (1165.3%) is considered high.

Reducing Debt: IRM's debt to equity ratio has increased from 322% to 1188.8% over the past 5 years.

Debt Coverage: IRM's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: IRM's interest payments on its debt are not well covered by EBIT (2.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.09%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: IRM's dividend (5.09%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: IRM's dividend (5.09%) is in the top 25% of dividend payers in the US market (4.07%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (109.9%), IRM's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (1465.3%), IRM's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.3yrs

Average management tenure

CEO

Bill Meaney (61 yo)

9.33yrs

Tenure

US$17,046,118

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 ($USD17.05M) is about average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: IRM's management team is considered experienced (4.3 years average tenure).

Board Members

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31