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IRM

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Iron Mountain logged a 2.3% change during today's morning session, and is now trading at a price of $129.16 per share.

Iron Mountain returned gains of 22.9% last year, with its stock price reaching a high of $134.09 and a low of $77.77. Over the same period, the stock underperformed the S&P 500 index by -3.4%. The company's 50-day average price was $122.0. Iron Mountain Incorporated is a global leader in information management services, and is trusted by more than 240,000 customers in 61 countries. Based in Portsmouth, NH, the Large-Cap Real Estate company has 29,400 full time employees. Iron Mountain has returned a 2.6% dividend yield over the last 12 months, but this may not be sustainable seen that the company has a choppy cash flow record.

The Company Has a Highly Leveraged Balance Sheet and a Declining EPS Growth Trend:

2020 2021 2022 2023 2024 2025
Revenue (M) $4,147 $4,492 $5,104 $5,480 $6,150 $6,902
Operating Margins 23% 19% 21% 17% 16% 17%
Net Margins 8% 10% 11% 3% 3% 2%
Net Income (M) $343 $453 $562 $187 $184 $152
Net Interest Expense (M) -$419 -$418 -$488 -$586 -$722 -$829
Depreciation & Amort. (M) $448 $465 $479 $526 $629 $731
Diluted Shares (M) 289 291 292 294 296 298
Earnings Per Share $1.19 $1.55 $1.9 $0.63 $0.61 $0.49
EPS Growth n/a 30.25% 22.58% -66.84% -3.17% -19.67%
Avg. Price $23.42 $38.04 $47.12 $69.98 $104.04 $124.66
P/E Ratio 19.68 24.38 24.54 111.08 170.56 254.41
Free Cash Flow (M) $549 $148 $52 -$226 -$595 -$932
CAPEX (M) $438 $611 $875 $1,339 $1,792 $2,272
EV / EBITDA 17.17 21.94 22.61 30.31 34.77 36.47
Total Debt (M) $17,213 $18,234 $21,050 $23,746 $26,723 $32,648
Net Debt / EBITDA 12.3 13.63 13.68 16.25 16.21 17.15
Current Ratio 0.64 0.71 0.81 0.78 0.55 0.74

Iron Mountain suffers from weak operating margins with a stable trend, declining EPS growth, and negative cash flows. The firm's financial statements also exhibit not enough current assets to cover current liabilities because its current ratio is 0.74 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.

Iron Mountain's Valuation Is in Line With Its Sector Averages:

Iron Mountain has a trailing twelve month P/E ratio of 132.6, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $2.67, the company has a forward P/E ratio of 45.7. The 12.3% compound average growth rate of Iron Mountain's historical and projected earnings per share yields a PEG ratio of 10.82. This suggests that these shares are overvalued.

Iron Mountain Has an Average Rating of Buy:

The 11 analysts following Iron Mountain have set target prices ranging from $44.0 to $149.0 per share, for an average of $131.55 with a buy rating.

Iron Mountain has an average amount of shares sold short because 3.3% of the company's shares are sold short. Institutions own 88.0% of the company's shares, and the insider ownership rate stands at 0.9%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 11% stake in the company is worth $4,265,038,203.

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.

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