IRON MOUNTAIN INC (IRM) Stock Fundamental Analysis
NYSE:IRM - New York Stock Exchange, Inc. - US46284V1017 - REIT
Taking everything into account, IRM scores 3 out of 10 in our fundamental rating. IRM was compared to 28 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IRM was profitable.
IRM had a positive operating cash flow in the past year.
In the past 5 years IRM has always been profitable.
Each year in the past 5 years IRM had a positive operating cash flow.
1.2 Ratios
IRM's Return On Assets of 0.57% is on the low side compared to the rest of the industry. IRM is outperformed by 75.00% of its industry peers.
With a decent Return On Invested Capital value of 6.32%, IRM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
IRM had an Average Return On Invested Capital over the past 3 years of 6.25%. This is in line with the industry average of 5.21%.
The last Return On Invested Capital (6.32%) for IRM is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | N/A | ||
| ROIC | 6.32% |
ROA(3y)2.54%
ROA(5y)2.4%
ROE(3y)75.69%
ROE(5y)55.1%
ROIC(3y)6.25%
ROIC(5y)6.21%
1.3 Margins
IRM has a Profit Margin of 1.75%. 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.
The Operating Margin of IRM (19.91%) is worse than 75.00% of its industry peers.
IRM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.86%, IRM is doing worse than 60.71% of the companies in the same industry.
In the last couple of years the Gross Margin of IRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.91% | ||
| PM (TTM) | 1.75% | ||
| GM | 67.86% |
OM growth 3Y-3.84%
OM growth 5Y1.74%
PM growth 3Y-25.9%
PM growth 5Y-16.69%
GM growth 3Y-2.02%
GM growth 5Y3.71%
2. Health
2.1 Basic Checks
IRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IRM has more shares outstanding
The number of shares outstanding for IRM has been increased compared to 5 years ago.
IRM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.20, we must say that IRM is in the distress zone and has some risk of bankruptcy.
IRM has a Altman-Z score of 1.20. This is comparable to the rest of the industry: IRM outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.2 |
ROIC/WACC0.8
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.75 indicates that IRM may have some problems paying its short term obligations.
IRM's Current ratio of 0.75 is fine compared to the rest of the industry. IRM outperforms 60.71% of its industry peers.
IRM has a Quick Ratio of 0.75. 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's Quick ratio of 0.75 is fine compared to the rest of the industry. IRM outperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
IRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.47%.
IRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.84% yearly.
Looking at the last year, IRM shows a quite strong growth in Revenue. The Revenue has grown by 12.16% in the last year.
IRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)6.47%
EPS 3Y17.98%
EPS 5Y10.84%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)12.16%
Revenue growth 3Y9.74%
Revenue growth 5Y5.34%
Sales Q2Q%12.13%
3.2 Future
The Earnings Per Share is expected to grow by 8.92% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.22% on average over the next years. This is quite good.
EPS Next Y3.69%
EPS Next 2Y8.88%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue Next Year11.97%
Revenue Next 2Y10.97%
Revenue Next 3Y10.35%
Revenue Next 5Y9.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 61.28, IRM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of IRM indicates a slightly more expensive valuation: IRM is more expensive than 64.29% of the companies listed in the same industry.
IRM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 52.27 indicates a quite expensive valuation of IRM.
60.71% of the companies in the same industry are cheaper than IRM, based on the Price/Forward Earnings ratio.
IRM is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.28 | ||
| Fwd PE | 52.27 |
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 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)16.61
PEG (5Y)5.65
EPS Next 2Y8.88%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, IRM has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.59, IRM pays less dividend than the industry average, which is at 4.78. 82.14% of the companies listed in the same industry pay a better dividend than IRM!
Compared to an average S&P500 Dividend Yield of 2.28, IRM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of IRM has a limited annual growth rate of 1.33%.
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)1.33%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
IRM pays out 734.86% of its income as dividend. This is not a sustainable payout ratio.
The dividend of IRM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP734.86%
EPS Next 2Y8.88%
EPS Next 3Y8.92%
IRON MOUNTAIN INC
NYSE:IRM (1/21/2025, 8:08:05 PM)
Premarket: 111.52 +0.61 (+0.55%)110.91
+1.69 (+1.55%)
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 Change-0.24%
Ins Owners0.71%
Ins Owner Change-12.63%
Market Cap32.55B
Analysts76.92
Price Target124.82 (12.54%)
Short Float %2.59%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend2.53
Dividend Growth(5Y)1.33%
DP734.86%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.31%
Min EPS beat(2)-9.99%
Max EPS beat(2)-4.62%
EPS beat(4)2
Avg EPS beat(4)0.16%
Min EPS beat(4)-9.99%
Max EPS beat(4)13.4%
EPS beat(8)4
Avg EPS beat(8)1.87%
EPS beat(12)8
Avg EPS beat(12)3.63%
EPS beat(16)10
Avg EPS beat(16)4.16%
Revenue beat(2)1
Avg Revenue beat(2)0.11%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.95%
Revenue beat(4)2
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)19.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.28 | ||
| Fwd PE | 52.27 | ||
| P/S | 5.44 | ||
| P/FCF | N/A | ||
| P/OCF | 26.85 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.23 |
EPS(TTM)1.81
EY1.63%
EPS(NY)2.12
Fwd EY1.91%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.13
OCFY3.72%
SpS20.41
BVpS-0.88
TBVpS-22.95
PEG (NY)16.61
PEG (5Y)5.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | N/A | ||
| ROCE | 7.38% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 10.73% | ||
| OM | 19.91% | ||
| PM (TTM) | 1.75% | ||
| GM | 67.86% | ||
| FCFM | N/A |
ROA(3y)2.54%
ROA(5y)2.4%
ROE(3y)75.69%
ROE(5y)55.1%
ROIC(3y)6.25%
ROIC(5y)6.21%
ROICexc(3y)6.35%
ROICexc(5y)6.31%
ROICexgc(3y)11.48%
ROICexgc(5y)11.89%
ROCE(3y)7.3%
ROCE(5y)7.25%
ROICexcg growth 3Y-6.5%
ROICexcg growth 5Y-7.16%
ROICexc growth 3Y-2.21%
ROICexc growth 5Y-0.78%
OM growth 3Y-3.84%
OM growth 5Y1.74%
PM growth 3Y-25.9%
PM growth 5Y-16.69%
GM growth 3Y-2.02%
GM growth 5Y3.71%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.43 | ||
| Cap/Depr | 179.71% | ||
| Cap/Sales | 26% | ||
| Interest Coverage | 1.74 | ||
| Cash Conversion | 58.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 1.2 |
F-Score5
WACC7.88%
ROIC/WACC0.8
Cap/Depr(3y)128.83%
Cap/Depr(5y)113.59%
Cap/Sales(3y)18.59%
Cap/Sales(5y)16.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.47%
EPS 3Y17.98%
EPS 5Y10.84%
EPS Q2Q%-2.22%
EPS Next Y3.69%
EPS Next 2Y8.88%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue 1Y (TTM)12.16%
Revenue growth 3Y9.74%
Revenue growth 5Y5.34%
Sales Q2Q%12.13%
Revenue Next Year11.97%
Revenue Next 2Y10.97%
Revenue Next 3Y10.35%
Revenue Next 5Y9.22%
EBIT growth 1Y10.82%
EBIT growth 3Y5.52%
EBIT growth 5Y7.17%
EBIT Next Year107.96%
EBIT Next 3Y36.49%
EBIT Next 5Y28.8%
FCF growth 1Y-699.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.62%
OCF growth 3Y4.08%
OCF growth 5Y3.55%