Now trading at a price of $114.88, Iron Mountain has moved 1.6% so far today.
Iron Mountain returned gains of 81.7% last year, with its stock price reaching a high of $130.24 and a low of $61.8. Over the same period, the stock outperformed the S&P 500 index by 52.6%. More recently, the company's 50-day average price was $119.57. Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Based in Portsmouth, NH, the Large-Cap Real Estate company has 27,000 full time employees. Iron Mountain has returned a 2.3% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,603 | $4,263 | $4,147 | $4,492 | $5,104 | $5,480 |
| Operating Margins | 50% | 18% | 23% | 19% | 21% | 17% |
| Net Margins | 22% | 6% | 8% | 10% | 11% | 3% |
| Net Income (M) | $355 | $268 | $343 | $453 | $562 | $187 |
| Net Interest Expense (M) | -$410 | -$419 | -$419 | -$418 | -$488 | -$586 |
| Depreciation & Amort. (M) | $453 | $456 | $448 | $465 | $479 | $526 |
| Diluted Shares (M) | 287 | 288 | 289 | 291 | 292 | 294 |
| Earnings Per Share | $1.23 | $0.93 | $1.19 | $1.55 | $1.9 | $0.63 |
| EPS Growth | n/a | -24.39% | 27.96% | 30.25% | 22.58% | -66.84% |
| Avg. Price | $24.53 | $25.58 | $23.42 | $38.04 | $47.12 | $114.88 |
| P/E Ratio | 19.78 | 27.51 | 19.68 | 24.38 | 24.54 | 182.35 |
| Free Cash Flow (M) | $475 | $274 | $549 | $148 | $52 | -$226 |
| CAPEX (M) | $460 | $693 | $438 | $611 | $875 | $1,339 |
| EV / EBITDA | 18.13 | 19.14 | 17.03 | 21.71 | 22.55 | 39.25 |
| Total Debt (M) | $16,033 | $16,551 | $17,019 | $17,925 | $20,963 | $23,625 |
| Net Debt / EBITDA | 12.58 | 13.22 | 12.16 | 13.39 | 13.62 | 16.17 |
| Current Ratio | 0.81 | 0.63 | 0.64 | 0.71 | 0.81 | 0.78 |
Iron Mountain suffers from weak operating margins with a negative growth trend, declining EPS growth, and positive cash flows. The firm's financial statements also exhibit not enough current assets to cover current liabilities because its current ratio is 0.78 and a highly leveraged balance sheet. On the other hand, the company has rapidly growing revenues and increasing reinvestment in the business working in its favor.
Iron Mountain's Valuation Is in Line With Its Sector Averages:
Iron Mountain has a trailing twelve month P/E ratio of 332.1, compared to an average of 31.12 for the Real Estate sector. Based on its EPS guidance of $1.96, the company has a forward P/E ratio of 61.0. The 6.9% compound average growth rate of Iron Mountain's historical and projected earnings per share yields a PEG ratio of 48.26. This suggests that these shares are overvalued. The company's shares are currently trading 3501.3% below their Graham number.
There's an Analyst Consensus of Some Upside Potential for Iron Mountain:
The 8 analysts following Iron Mountain have set target prices ranging from $45.0 to $140.0 per share, for an average of $122.12 with a buy rating. The company is trading -5.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Iron Mountain has an average amount of shares sold short because 3.8% of the company's shares are sold short. Institutions own 84.1% 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 $5,353,848,781.
