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 30 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. 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 has a worse Return On Assets (0.96%) than 66.67% of its industry peers.
IRM's Return On Invested Capital of 6.11% is fine compared to the rest of the industry. IRM outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRM is in line with the industry average of 5.25%.
The last Return On Invested Capital (6.11%) for IRM is above the 3 year average (5.88%), which is a sign of increasing profitability.
| 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 66.67% of its industry peers.
In the last couple of years the Profit Margin of IRM has declined.
Looking at the Operating Margin, with a value of 19.72%, IRM is doing worse than 73.33% of the companies in the same industry.
IRM's Operating Margin has improved in the last couple of years.
IRM has a worse Gross Margin (67.26%) than 60.00% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for IRM is higher compared to a year ago.
2.2 Solvency
IRM has an Altman-Z score of 0.88. This is a bad value and indicates that IRM is not financially healthy and even has some risk of bankruptcy.
IRM has a Altman-Z score (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.77
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.55 indicates that IRM may have some problems paying its short term obligations.
IRM has a worse Current ratio (0.55) than 63.33% 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 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
IRM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
IRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.69% yearly.
IRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.22%.
Measured over the past years, IRM shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
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
The Earnings Per Share is expected to grow by 9.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y7.49%
EPS Next 2Y10.78%
EPS Next 3Y9.23%
EPS Next 5YN/A
Revenue Next Year8.99%
Revenue Next 2Y8.76%
Revenue Next 3Y8.63%
Revenue Next 5Y7.6%
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 decreasing.
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
Based on the Price/Earnings ratio of 47.04, the valuation of IRM can be described as expensive.
IRM's Price/Earnings ratio is in line with the industry average.
IRM is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 43.77 indicates a quite expensive valuation of IRM.
The rest of the industry has a similar Price/Forward Earnings ratio as IRM.
IRM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.04 | ||
| Fwd PE | 43.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IRM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.12 |
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)6.28
PEG (5Y)4.03
EPS Next 2Y10.78%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, IRM has a reasonable but not impressive dividend return.
In the last 3 months the price of IRM has falen by -22.90%. 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 5.17.
IRM's Dividend Yield is a higher than the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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 2Y10.78%
EPS Next 3Y9.23%
84.21
+1.58 (+1.91%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.31%
Inst Owner Change0%
Ins Owners0.71%
Ins Owner Change-4.34%
Market Cap24.74B
Analysts76.92
Price Target119.05 (41.37%)
Short Float %3.11%
Short Ratio4.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)-1.45%
PT rev (3m)-4.63%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-16.58%
EPS NY rev (1m)-7.59%
EPS NY rev (3m)-9.32%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.04 | ||
| Fwd PE | 43.77 | ||
| P/S | 4.02 | ||
| P/FCF | N/A | ||
| P/OCF | 20.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.12 |
EPS(TTM)1.79
EY2.13%
EPS(NY)1.92
Fwd EY2.28%
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)4.07
OCFY4.84%
SpS20.94
BVpS-1.71
TBVpS-23.36
PEG (NY)6.28
PEG (5Y)4.03
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 | 0.88 |
F-Score5
WACC7.97%
ROIC/WACC0.77
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 Y7.49%
EPS Next 2Y10.78%
EPS Next 3Y9.23%
EPS Next 5YN/A
Revenue 1Y (TTM)12.22%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%11.37%
Revenue Next Year8.99%
Revenue Next 2Y8.76%
Revenue Next 3Y8.63%
Revenue Next 5Y7.6%
EBIT growth 1Y9.27%
EBIT growth 3Y10.4%
EBIT growth 5Y9.25%
EBIT Next Year113.05%
EBIT Next 3Y36.78%
EBIT Next 5Y27.87%
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%