IRON MOUNTAIN INC (IRM) Stock Fundamental Analysis
NYSE:IRM - New York Stock Exchange, Inc. - US46284V1017 - REIT - Currency: USD
Taking everything into account, IRM scores 2 out of 10 in our fundamental rating. IRM was compared to 29 industry peers in the Specialized REITs industry. IRM has a medium profitability rating, but doesn't score so well on its financial health evaluation. IRM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRM was profitable.
In the past year IRM had a positive cash flow from operations.
In the past 5 years IRM has always been profitable.
In the past 5 years IRM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IRM (0.96%) is worse than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, IRM is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IRM is in line with the industry average of 5.41%.
The 3 year average ROIC (5.88%) for IRM is below the current ROIC(6.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | N/A | ||
| ROIC | 6.11% |
ROA(3y)1.82%
ROA(5y)2.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.88%
ROIC(5y)5.9%
1.3 Margins
IRM has a Profit Margin of 2.93%. This is in the lower half of the industry: IRM underperforms 75.00% of its industry peers.
IRM's Profit Margin has declined in the last couple of years.
IRM has a worse Operating Margin (19.72%) than 75.00% of its industry peers.
IRM's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 67.26%, IRM is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of IRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.72% | ||
| PM (TTM) | 2.93% | ||
| GM | 67.26% |
OM growth 3Y-0.58%
OM growth 5Y1.53%
PM growth 3Y-33.64%
PM growth 5Y-14.13%
GM growth 3Y-1.38%
GM growth 5Y3.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IRM is destroying value.
The number of shares outstanding for IRM has been increased compared to 1 year ago.
The number of shares outstanding for IRM has been increased compared to 5 years ago.
Compared to 1 year ago, IRM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that IRM is in the distress zone and has some risk of bankruptcy.
IRM has a Altman-Z score of 0.97. This is comparable to the rest of the industry: IRM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.74
WACC8.26%
2.3 Liquidity
IRM has a Current Ratio of 0.55. This is a bad value and indicates that IRM is not financially healthy enough and could expect problems in meeting its short term obligations.
IRM has a Current ratio of 0.55. This is in the lower half of the industry: IRM underperforms 64.29% of its industry peers.
IRM has a Quick Ratio of 0.55. This is a bad value and indicates that IRM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, IRM is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for IRM have decreased by 0.00% in the last year.
The Earnings Per Share has been growing by 11.69% on average over the past years. This is quite good.
The Revenue has grown by 12.22% in the past year. This is quite good.
The Revenue has been growing slightly by 7.61% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%-3.85%
Revenue 1Y (TTM)12.22%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%11.37%
3.2 Future
Based on estimates for the next years, IRM will show a small growth in Earnings Per Share. The EPS will grow by 7.15% on average per year.
The Revenue is expected to grow by 7.75% on average over the next years.
EPS Next Y16.32%
EPS Next 2Y12.8%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year9.14%
Revenue Next 2Y9%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 51.27, IRM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as IRM.
The average S&P500 Price/Earnings ratio is at 29.63. IRM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.08, which means the current valuation is very expensive for IRM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, IRM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 44.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IRM indicates a slightly more expensive valuation: IRM is more expensive than 67.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.14
PEG (5Y)4.39
EPS Next 2Y12.8%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.36%, IRM has a reasonable but not impressive dividend return.
In the last 3 months the price of IRM has falen by -22.94%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
IRM's Dividend Yield is slightly below the industry average, which is at 4.50.
IRM's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
5.2 History
The dividend of IRM has a limited annual growth rate of 1.86%.
IRM has paid a dividend for at least 10 years, which is a reliable track record.
IRM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.86%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
IRM pays out 438.25% of its income as dividend. This is not a sustainable payout ratio.
IRM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP438.25%
EPS Next 2Y12.8%
EPS Next 3Y7.15%
91.78
-1.72 (-1.84%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners86.07%
Inst Owner Change0.78%
Ins Owners0.71%
Ins Owner Change-8.6%
Market Cap26.93B
Analysts76.92
Price Target120.8 (31.62%)
Short Float %2.76%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.36% |
Yearly Dividend2.7
Dividend Growth(5Y)1.86%
DP438.25%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-9.92%
Min EPS beat(2)-9.99%
Max EPS beat(2)-9.85%
EPS beat(4)1
Avg EPS beat(4)-5.65%
Min EPS beat(4)-9.99%
Max EPS beat(4)1.85%
EPS beat(8)4
Avg EPS beat(8)0.92%
EPS beat(12)7
Avg EPS beat(12)2.22%
EPS beat(16)10
Avg EPS beat(16)4.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)-0.73%
Revenue beat(4)2
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.49%
Revenue beat(16)5
Avg Revenue beat(16)-1.08%
PT rev (1m)-0.1%
PT rev (3m)8.87%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)6.84%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.27 | ||
| Fwd PE | 44.08 | ||
| P/S | 4.38 | ||
| P/FCF | N/A | ||
| P/OCF | 22.51 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.4 |
EPS(TTM)1.79
EY1.95%
EPS(NY)2.08
Fwd EY2.27%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.08
OCFY4.44%
SpS20.96
BVpS-1.71
TBVpS-23.38
PEG (NY)3.14
PEG (5Y)4.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | N/A | ||
| ROCE | 7.76% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.17% | ||
| ROICexgc | 10.48% | ||
| OM | 19.72% | ||
| PM (TTM) | 2.93% | ||
| GM | 67.26% | ||
| FCFM | N/A |
ROA(3y)1.82%
ROA(5y)2.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.88%
ROIC(5y)5.9%
ROICexc(3y)5.95%
ROICexc(5y)5.98%
ROICexgc(3y)10.42%
ROICexgc(5y)10.9%
ROCE(3y)7.47%
ROCE(5y)7.49%
ROICexcg growth 3Y-1.19%
ROICexcg growth 5Y-0.22%
ROICexc growth 3Y1.92%
ROICexc growth 5Y3.27%
OM growth 3Y-0.58%
OM growth 5Y1.53%
PM growth 3Y-33.64%
PM growth 5Y-14.13%
GM growth 3Y-1.38%
GM growth 5Y3.37%
F-Score5
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.15 | ||
| Cap/Depr | 205.79% | ||
| Cap/Sales | 30.15% | ||
| Interest Coverage | 1.57 | ||
| Cash Conversion | 56.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.97 |
F-Score5
WACC8.26%
ROIC/WACC0.74
Cap/Depr(3y)166.84%
Cap/Depr(5y)132%
Cap/Sales(3y)24%
Cap/Sales(5y)19.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%-3.85%
EPS Next Y16.32%
EPS Next 2Y12.8%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)12.22%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%11.37%
Revenue Next Year9.14%
Revenue Next 2Y9%
Revenue Next 3Y7.75%
Revenue Next 5YN/A
EBIT growth 1Y9.27%
EBIT growth 3Y10.4%
EBIT growth 5Y9.25%
EBIT Next Year110.2%
EBIT Next 3Y35.93%
EBIT Next 5YN/A
FCF growth 1Y-183.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.47%
OCF growth 3Y16.4%
OCF growth 5Y4.36%