Now trading at a price of $66.42, Iron Mountain has moved -0.0% so far today.
Iron Mountain returned gains of 20.9% last year, with its stock price reaching a high of $66.72 and a low of $48.92. Over the same period, the stock outperformed the S&P 500 index by 4.7%. More recently, the company's 50-day average price was $61.3. Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management. Based in Portsmouth, NH, the large-cap Real Estate company has 26,000 full time employees. Iron Mountain has offered a 3.8% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,603 | $4,263 | $4,147 | $4,492 | $5,104 | $5,340 |
| Revenue Growth | n/a | 165.86% | -2.71% | 8.3% | 13.63% | 4.62% |
| Operating Margins | 50% | 18% | 23% | 19% | 21% | 18% |
| Net Margins | 23% | 6% | 8% | 10% | 11% | 5% |
| Net Income (MM) | $368 | $268 | $343 | $453 | $562 | $284 |
| Net Interest Expense (MM) | $12 | -$34 | -$144 | $193 | $70 | -$36 |
| Depreciation & Amort. (MM) | $640 | $658 | $652 | $680 | $728 | $767 |
| Earnings Per Share | $1.23 | $0.93 | $1.19 | $1.55 | $1.9 | $0.95 |
| EPS Growth | n/a | -24.39% | 27.96% | 30.25% | 22.58% | -50.0% |
| Diluted Shares (MM) | 287 | 288 | 289 | 291 | 292 | 296 |
| Free Cash Flow (MM) | $476 | $274 | $1,073 | $1,232 | $52 | -$207 |
| Capital Expenditures (MM) | $460 | $693 | -$85 | -$473 | $875 | $1,241 |
| Current Ratio | 0.81 | 0.63 | 0.64 | 0.71 | 0.81 | 0.81 |
| Total Debt (MM) | $8,143 | $8,711 | $9,338 | $9,772 | $10,569 | $11,656 |
| Net Debt / EBITDA | 5.51 | 5.92 | 5.76 | 6.2 | 5.87 | 6.75 |
Iron Mountain has declining EPS growth, irregular cash flows, and a highly leveraged balance sheet. On the other hand, the company has growing revenues and increasing reinvestment in the business working in its favor. Furthermore, Iron Mountain has average net margins with a negative growth trend.
Iron Mountain Has Elevated P/B and P/E Ratios:
Iron Mountain has a trailing twelve month P/E ratio of 65.2, compared to an average of 25.55 for the Real Estate sector. Based on its EPS guidance of $1.83, the company has a forward P/E ratio of 33.5. The 5.8% compound average growth rate of Iron Mountain's historical and projected earnings per share yields a PEG ratio of 11.17. This suggests that these shares are overvalued. Furthermore, Iron Mountain is likely overvalued compared to the book value of its equity, since its P/B ratio of 73.88 is higher than the sector average of 2.1. The company's shares are currently trading 1426.9% above their Graham number.
Analysts Give Iron Mountain an Average Rating of Buy:
The 8 analysts following Iron Mountain have set target prices ranging from $44.0 to $73.0 per share, for an average of $65.13 with a buy rating. As of April 2023, the company is trading -5.9% 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 4.7% of the company's shares are sold short. Institutions own 75.2% of the company's shares, and the insider ownership rate stands at 0.81%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 16% stake in the company is worth $3,096,019,832.
