IRON MOUNTAIN INC (IRM)
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. While IRM is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, IRM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
IRM had positive earnings in the past year.
In the past year IRM had a positive cash flow from operations.
IRM had positive earnings in each of the past 5 years.
In the past 5 years IRM always reported a positive cash flow from operatings.
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.
IRM has a better Return On Invested Capital (6.32%) than 71.43% of its industry peers.
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 3 year average ROIC (6.25%) for IRM is below the current ROIC(6.32%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 1.75%, IRM is doing worse than 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of IRM has declined.
IRM has a worse Operating Margin (19.91%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of IRM has grown nicely.
IRM has a worse Gross Margin (67.86%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRM is destroying value.
IRM has more shares outstanding than it did 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
Based on the Altman-Z score of 1.15, we must say that IRM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, IRM is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.15 |
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.
A Quick Ratio of 0.75 indicates that IRM may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.75, IRM is doing good in the industry, outperforming 60.71% of the companies in the same industry.
| 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.
The Revenue has grown by 12.16% in the past year. This is quite good.
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
Based on estimates for the next years, IRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.92% on average per year.
Based on estimates for the next years, IRM will show a quite strong growth in Revenue. The Revenue will grow by 9.22% on average per year.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
IRM is valuated quite expensively with a Price/Earnings ratio of 58.07.
64.29% of the companies in the same industry are cheaper than IRM, based on the Price/Earnings ratio.
IRM is valuated expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 49.53, IRM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.07 | ||
| Fwd PE | 49.53 |
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 | 21.4 |
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)15.74
PEG (5Y)5.36
EPS Next 2Y8.88%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
IRM has a Yearly Dividend Yield of 2.81%.
IRM's Dividend Yield is slightly below the industry average, which is at 4.85.
IRM's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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.
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
734.86% of the earnings are spent on dividend by IRM. This is not a sustainable payout ratio.
IRM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP734.86%
EPS Next 2Y8.88%
EPS Next 3Y8.92%
IRON MOUNTAIN INC
NYSE:IRM (12/20/2024, 8:18:55 PM)
After market: 105.1 0 (0%)105.1
+3.48 (+3.42%)
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-2.5%
Ins Owners0.71%
Ins Owner Change-12.79%
Market Cap30.84B
Analysts76.92
Price Target124.82 (18.76%)
Short Float %2.87%
Short Ratio5.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Dividend Growth(5Y)1.33%
DP734.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)8.99%
PT rev (3m)23.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.07 | ||
| Fwd PE | 49.53 | ||
| P/S | 5.15 | ||
| P/FCF | N/A | ||
| P/OCF | 25.44 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.4 |
EPS(TTM)1.81
EY1.72%
EPS(NY)2.12
Fwd EY2.02%
FCF(TTM)-1.17
FCFYN/A
OCF(TTM)4.13
OCFY3.93%
SpS20.41
BVpS-0.88
TBVpS-22.95
PEG (NY)15.74
PEG (5Y)5.36
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 | 1.15 |
F-Score5
WACC7.79%
ROIC/WACC0.81
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 Year107.2%
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%