Iron Mountain — The Essentials

Iron Mountain has moved -1.2% so far today on a volume of 184,557, compared to its average of 1,340,940. In contrast, the S&P 500 index moved -0.4%.

Over the last 52 weeks, the stock moved -3.9%, with a high of $58.61 and a low of $41.67. During this time, the stock underperformed the S&P 500 index by 16.2%. Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. The large-cap Real Estate company has 25,000 full time employees and is based in Boston, MA. Iron Mountain has returned a 4.9% dividend yield over the last 12 months.

A Negative Expected EPS Growth Rate with a Highly Leveraged Balance Sheet:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $4,226 $4,263 $4,147 $4,492
Revenue Growth n/a 0.9% -2.7% 8.3%
Operating Margins 19.11% 18.74% 19.89% 20.07%
Operating Margins Growth n/a -1.94% 6.14% 0.9%
Net Margins 8.6% 6.27% 8.26% 10.02%
Net Margins Growth n/a -27.09% 31.74% 21.31%
Earnings Per Share $0.58 $0.42 $0.64 $1.23
EPS Growth n/a -27.59% 52.38% 92.19%
Free Cash Flow (MM) $403 $218 $534 $135
FCF Growth n/a -45.86% 144.92% -74.83%
Capital Expenditures (MM) $-533 $-748 $-453 $-624
Net Debt / EBITDA 5.5 5.98 6.0 5.2

Iron Mountain Is Overvalued:

Compared to the Real Estate sector's average of 27.16, Iron Mountain has a trailing twelve month price to earnings (P/E) ratio of 29.5 and, based on its Eps guidance of 1.88, an expected P/E ratio of 26.6.

The firm's price to earnings growth (PEG) is 4.44, which indicates that it is overvalued in terms of its expected rate of earnings growth.

Iron Mountain's price to book (P/B) ratio is 27.5 compared to its sector average of 2.39. The company may be overvalued in terms of its assets. As of the date of publication, the company is trading 500.3% above its fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:

√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 1.7 * 1.821) = $8.35

Iron Mountain Is the Subject of Mixed Market Indicators:

8 analysts are following Iron Mountain and have set target prices ranging from $20 to $68 per share. On average, they have given the company a rating of buy. At today's prices, IRM is trading -10.13% away from its average analyst target price of $55.75 per share, implying an analyst consensus of some upside potential for the stock.

The company has an above average percentage of its shares sold short since 9.1% of the company's shares are tied to short positions. Institutions own 80.2% of Iron Mountain's shares, while the insider ownership rate stands at 0.87%. The biggest shareholder is the Vanguard Group, Inc. with a 16% stake in the company worth approximately $2,377,088,064.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.