IRON MOUNTAIN INC (IRM)
US46284V1017 - REIT
IRM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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
IRM had positive earnings in the past year.
IRM had a positive operating cash flow in the past year.
In the past 5 years IRM has always been profitable.
IRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IRM's Return On Assets of 1.28% is on the low side compared to the rest of the industry. IRM is outperformed by 71.43% of its industry peers.
IRM has a Return On Invested Capital of 6.34%. This is in the better half of the industry: IRM outperforms 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 5.20%.
The last Return On Invested Capital (6.34%) for IRM is above the 3 year average (6.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | N/A | ||
| ROIC | 6.34% |
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 3.94%, 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.
IRM has a worse Operating Margin (20.10%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of IRM has grown nicely.
IRM has a Gross Margin of 68.47%. This is in the lower half of the industry: IRM underperforms 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 | 20.1% | ||
| PM (TTM) | 3.94% | ||
| GM | 68.47% |
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.
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 1.36, we must say that IRM is in the distress zone and has some risk of bankruptcy.
IRM has a Altman-Z score of 1.36. 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 | 1.36 |
ROIC/WACC0.81
WACC7.78%
2.3 Liquidity
IRM has a Current Ratio of 0.79. 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 0.79. This is comparable to the rest of the industry: IRM outperforms 53.57% of its industry peers.
A Quick Ratio of 0.79 indicates that IRM may have some problems paying its short term obligations.
IRM has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
IRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.20%.
The Earnings Per Share has been growing by 10.84% on average over the past years. This is quite good.
IRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.10%.
Measured over the past years, IRM shows a small growth in Revenue. The Revenue has been growing by 5.34% on average per year.
EPS 1Y (TTM)5.2%
EPS 3Y17.98%
EPS 5Y10.84%
EPS Q2Q%5%
Revenue 1Y (TTM)11.1%
Revenue growth 3Y9.74%
Revenue growth 5Y5.34%
Sales Q2Q%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 11.37% 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 8.89% on average per year.
EPS Next Y6.64%
EPS Next 2Y9.59%
EPS Next 3Y11.37%
EPS Next 5YN/A
Revenue Next Year13.19%
Revenue Next 2Y11.71%
Revenue Next 3Y10.17%
Revenue Next 5Y8.89%
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.
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
IRM is valuated quite expensively with a Price/Earnings ratio of 66.57.
Based on the Price/Earnings ratio, IRM is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
IRM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 30.16.
A Price/Forward Earnings ratio of 56.36 indicates a quite expensive valuation of IRM.
Based on the Price/Forward Earnings ratio, IRM is valued a bit more expensive than 60.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. IRM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 66.57 | ||
| Fwd PE | 56.36 |
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 | 24.14 |
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)10.02
PEG (5Y)6.14
EPS Next 2Y9.59%
EPS Next 3Y11.37%
5. Dividend
5.1 Amount
IRM has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.46, IRM's dividend is way lower than its industry peers. On top of this 82.14% of the companies listed in the same industry pay a better dividend than IRM!
IRM's Dividend Yield is comparable with the S&P500 average which is at 2.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.33%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IRM pays out 331.08% 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.
DP331.08%
EPS Next 2Y9.59%
EPS Next 3Y11.37%
IRON MOUNTAIN INC
NYSE:IRM (11/1/2024, 8:09:43 PM)
After market: 121.76 +0.6 (+0.5%)121.16
-2.57 (-2.08%)
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 Cap35.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 66.57 | ||
| Fwd PE | 56.36 | ||
| 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)10.02
PEG (5Y)6.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.1% | ||
| PM (TTM) | 3.94% | ||
| GM | 68.47% | ||
| 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 | 0.79 | ||
| Quick Ratio | 0.79 | ||
| 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)5.2%
EPS 3Y17.98%
EPS 5Y
EPS Q2Q%
EPS Next Y6.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.1%
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