IRON MOUNTAIN INC (IRM)
US46284V1017 - REIT
We assign a fundamental rating of 3 out of 10 to IRM. 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.
In the past year IRM had a positive cash flow from operations.
Each year in the past 5 years IRM has been profitable.
In the past 5 years IRM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.57%, IRM is doing worse than 71.43% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.32%, IRM is in the better half of the industry, outperforming 71.43% 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 5.21%.
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
With a Profit Margin value of 1.75%, IRM is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
IRM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 19.91%, IRM is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of IRM has grown nicely.
IRM's Gross Margin of 67.86% is on the low side compared to the rest of the industry. IRM is outperformed by 60.71% of its industry peers.
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.
The number of shares outstanding for IRM has been increased compared to 1 year ago.
IRM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IRM has a worse debt to assets ratio.
2.2 Solvency
IRM has an Altman-Z score of 1.28. This is a bad value and indicates that IRM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.28, IRM is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.81
WACC7.79%
2.3 Liquidity
IRM has a Current 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 has a Current ratio of 0.75. This is in the better half 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.
The Quick ratio of IRM (0.75) is better than 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%.
Measured over the past years, IRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.84% on average per year.
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 8.89% on average over the next years. This is quite good.
EPS Next Y3.26%
EPS Next 2Y5.25%
EPS Next 3Y8.92%
EPS Next 5YN/A
Revenue Next Year13.43%
Revenue Next 2Y11.72%
Revenue Next 3Y10.29%
Revenue Next 5Y8.89%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 65.60, IRM can be considered very expensive at the moment.
64.29% of the companies in the same industry are cheaper than IRM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. IRM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 59.88, IRM can be considered very expensive at the moment.
64.29% of the companies in the same industry are cheaper than IRM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IRM to the average of the S&P500 Index (23.82), we can say IRM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.6 | ||
| Fwd PE | 59.88 |
4.2 Price Multiples
IRM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IRM is more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 23.35 |
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)20.14
PEG (5Y)6.05
EPS Next 2Y5.25%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
IRM has a Yearly Dividend Yield of 2.53%.
With a Dividend Yield of 2.53, IRM pays less dividend than the industry average, which is at 4.54. 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 2.23, IRM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of IRM has a limited annual growth rate of 1.33%.
IRM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of IRM decreased in the last 3 years.
Dividend Growth(5Y)1.33%
Div Incr Years2
Div Non Decr Years2
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 2Y5.25%
EPS Next 3Y8.92%
IRON MOUNTAIN INC
NYSE:IRM (11/21/2024, 8:04:00 PM)
After market: 118.73 0 (0%)118.73
+2.43 (+2.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.6 | ||
| Fwd PE | 59.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)20.14
PEG (5Y)6.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.91% | ||
| PM (TTM) | 1.75% | ||
| GM | 67.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.47%
EPS 3Y17.98%
EPS 5Y
EPS Q2Q%
EPS Next Y3.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.16%
Revenue growth 3Y9.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y