Now trading at a price of $62.84, Iron Mountain has moved -0.0% so far today.
Iron Mountain returned gains of 14.0% last year, with its stock price reaching a high of $64.37 and a low of $43.33. Over the same period, the stock returned a similar cumulative performance to the S&P 500. As of April 2023, the company's 50-day average price was $61.27.
Iron Mountain Incorporated (NYSE: IRM) is a global leader in innovative storage, data center infrastructure, asset lifecycle management and information management services. Based in Portsmouth, NH, the large-cap Real Estate company has 26,000 full time employees. Iron Mountain has offered a 3.9% dividend yield over the last 12 months.
The Company Has a Highly Leveraged Balance Sheet:
| 2018-02-16 | 2019-02-14 | 2020-02-13 | 2021-02-24 | 2022-02-24 | 2023-02-23 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $3,846 | $4,226 | $4,263 | $4,147 | $4,492 | $5,104 |
| Operating Margins | 17% | 19% | 18% | 19% | 20% | 21% |
| Net Margins | 5.0% | 8.0% | 6.0% | 8.0% | 10.0% | 11.0% |
| Net Income (MM) | $184 | $354 | $267 | $343 | $450 | $557 |
| Net Interest Expense (MM) | -$354 | -$410 | -$419 | -$419 | -$418 | -$488 |
| Depreciation & Amort. (MM) | -$537 | -$453 | -$456 | -$448 | -$465 | -$479 |
| Earnings Per Share | $0.69 | $1.23 | $0.93 | $1.19 | $1.54 | $1.9 |
| EPS Growth | n/a | 78.26% | -24.39% | 27.96% | 29.41% | 23.38% |
| Diluted Shares (MM) | 267 | 287 | 288 | 289 | 292 | 293 |
| Free Cash Flow (MM) | $1,110 | $1,373 | $1,540 | $866 | $1,098 | $1,635 |
| Capital Expenditures (MM) | -$389 | -$437 | -$573 | $122 | -$339 | -$707 |
| Net Current Assets (MM) | -$6,632 | -$8,688 | -$11,049 | -$11,683 | -$12,079 | -$13,861 |
| Long Term Debt (MM) | $6,897 | $8,016 | $8,276 | $8,510 | $8,963 | $10,481 |
| Net Debt / EBITDA | 5.14 | 6.44 | 6.86 | 6.87 | 6.6 | 6.84 |
Iron Mountain has weak revenue growth and a flat capital expenditure trend, weak operating margings with a stable trend, and irregular cash flows. We also note that the company has a strong EPS growth trend working in its favor. However, the firm has a highly leveraged balance sheet.
Iron Mountain's P/B and P/E Ratios Are Higher Than Average:
Iron Mountain has a trailing twelve month P/E ratio of 47.5, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $1.94, the company has a forward P/E ratio of 31.6. Iron Mountain's PEG ratio is 5.44 on the basis of the 8.7% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Iron Mountain is likely overvalued compared to the book value of its equity, since its P/B ratio of 44.07 is higher than the sector average of 2.24. The company's shares are currently trading 507.7% above their Graham number.
There's an Analyst Consensus of Little Upside Potential for Iron Mountain:
The 8 analysts following Iron Mountain have set target prices ranging from $20.0 to $75.0 per share, for an average of $62.75 with a buy rating. As of April 2023, the company is trading -2.4% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Iron Mountain has an average amount of shares sold short because 5.0% of the company's shares are sold short. Institutions own 79.1% of the company's shares, and the insider ownership rate stands at 0.82%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $2,944,291,919.
