Iron Mountain (IRM) AI Stock Analysis

• Market Cap: $27.23B
• Dividend Yield: 3.25%
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 671.4
• Beta (1Y): 1.04
• Revenue Growth: 10.72%
• EPS Growth: -81.96%
• Country: US
• Employees: 28,850
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Specialty
• EPS (TTM): 0.48
• Shares Outstanding: 295,348,240
• 10 Day Avg. Volume: 1,218,216
• 30 Day Avg. Volume: 1,414,999
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 7.53
• Enterprise Value/Gross Profit: 13.44
• Enterprise Value/Ebitda: 20.79
• 1Y Price Target: $121.60
• Price Target Upside: 31.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 60 Neutral
• Price Target: $95.00 ▲(2.78% Upside)

Iron Mountain's strong earnings call performance and upward guidance revision are significant positives, reflecting robust growth in key business areas. However, the high P/E ratio suggests overvaluation, and technical indicators point to bearish momentum. Financial performance is mixed, with high leverage and profitability challenges, which weigh on the overall score.

Positive Factors

Financial Performance

ALM revenues came in nearly ~$20MM ahead of estimates and guidance was raised to $575MM.

Revenue Growth

The RIM Storage segment saw organic revenue growth accelerate modestly for the second consecutive quarter to +5.8%.

Strategic Development

Iron Mountain has built a strong brand as a developer in the data center landscape, focusing on strategic partnerships with hyperscalers.

Negative Factors

Leasing Issues

The biggest issue with the print was another soft quarter of data center leasing, and a leasing guidance reduction to +30-80 MWs.

Market Conditions

The market for building new data centers is still tight, but Iron Mountain is confident in its processes and investments in site selection and supply chain management.

Iron Mountain Business Overview & Revenue Model

Company Description

Iron Mountain Incorporated (IRM) is a leading provider of information management services, specializing in the secure storage and management of physical and digital information. The company operates in various sectors, including records management, data backup and recovery, document management, and secure shredding services. Iron Mountain serves a diverse client base, ranging from small businesses to large enterprises, helping them to manage their information lifecycle efficiently and securely.

How the Company Makes Money

Iron Mountain generates revenue primarily through its core services, which include records management, data protection, and cloud services. The company earns money by charging clients for the storage of physical documents, the retrieval and delivery of those documents, and the management of digital assets. Key revenue streams include monthly fees for storage services, pay-per-use fees for retrieval, and sales from digital transformation services. Additionally, Iron Mountain benefits from long-term contracts with clients, which provide a stable revenue base. Partnerships with technology providers enhance its service offerings, particularly in digital backup and disaster recovery solutions, contributing to its earnings through added value services.

Iron Mountain Financial Statement Overview

Summary

Iron Mountain shows strong revenue and EBITDA growth with efficient operations. However, negative equity and high leverage pose financial risks, requiring careful debt and expenditure management. The company generates solid cash flow but needs to address negative free cash flow for sustained growth.

Income Statement

Iron Mountain's income statement reveals a solid revenue growth trajectory, with a TTM revenue of $6.27 billion, which is a notable improvement from the previous annual figures. The gross profit margin for TTM is approximately 63.8%, indicating strong operational efficiency. However, the net profit margin is relatively low at 1.95%, which suggests high operational costs or significant interest expenses. The EBIT and EBITDA margins of 17.1% and 38.3%, respectively, are strong in the REIT industry, demonstrating effective cost management and operational scale.

Balance Sheet

The balance sheet presents a challenging picture for Iron Mountain, with a negative stockholders' equity of $698.5 million in TTM, indicating potential financial risks. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt level of approximately $4.02 billion suggests significant leverage. The company must manage its liabilities effectively to avoid solvency issues. On a positive note, the asset base is strong at $19.36 billion, providing a buffer against financial instability.

Cash Flow

Iron Mountain's cash flow statement shows a robust operating cash flow of $1.26 billion in TTM, highlighting strong cash generation from core activities. However, the free cash flow is negative at -$850.2 million, largely due to high capital expenditures, which may impact liquidity. The operating cash flow to net income ratio is 10.36, indicating efficient conversion of earnings to cash. The company needs to monitor its capital spending to ensure long-term financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.44B	6.15B	5.48B	5.10B	4.49B	4.15B
Gross Profit	3.61B	3.45B	3.12B	2.91B	2.60B	2.39B
EBITDA	2.33B	1.91B	1.62B	1.87B	1.75B	1.30B
Net Income	41.34M	180.16M	184.23M	556.98M	450.22M	342.69M
Balance Sheet
Total Assets	20.18B	18.72B	17.47B	16.14B	14.45B	14.15B
Cash, Cash Equivalents and Short-Term Investments	217.99M	155.72M	222.79M	141.80M	255.83M	205.06M
Total Debt	17.85B	16.37B	14.79B	13.29B	11.70B	11.00B
Total Liabilities	20.67B	18.94B	17.08B	15.41B	13.52B	13.01B
Stockholders Equity	-767.44M	-503.12M	211.65M	636.67M	855.95M	1.14B
Cash Flow
Free Cash Flow	-990.58M	-594.86M	-231.53M	44.11M	134.53M	534.40M
Operating Cash Flow	1.26B	1.20B	1.11B	927.70M	758.90M	987.66M
Investing Cash Flow	-2.53B	-2.14B	-1.44B	-1.66B	-473.31M	-85.44M
Financing Cash Flow	1.39B	876.75M	425.67M	639.21M	-220.81M	-886.70M

Iron Mountain Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRM, the sentiment is Positive. The current price of 92.43 is above the 20-day moving average (MA) of 91.90, below the 50-day MA of 95.26, and below the 200-day MA of 96.90, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 60.52 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRM.

Iron Mountain Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMR	77 Outperform	$12.96B	29.84	41.80%	4.81%	3.08%	-12.87%
EQIX	73 Outperform	$75.72B	75.74	7.54%	2.39%	5.74%	-6.58%
SBAC	62 Neutral	$21.23B	24.30	-14.67%	2.25%	1.82%	71.39%
IRM	60 Neutral	$27.23B	671.38	-35.81%	3.25%	10.72%	-81.96%
AMT	58 Neutral	$92.86B	71.99	66.09%	3.43%	-9.52%	-48.20%
Sector *	53 Neutral	$1.22B	2.98	-6.08%	5.74%	-8.21%	-81.31%
CCI	50 Neutral	$41.87B	33.81	-234.10%	6.13%	-17.95%	-398.78%

Iron Mountain Corporate Events

Iron Mountain Amends Credit Agreement for Financial Stability

On June 18, 2025, Iron Mountain Incorporated and its subsidiaries amended their Credit Agreement, initially established in 2011, to adjust the amortization schedule of their 2022 Term A Loans and secure additional term loans totaling $286,718,750. This amendment aims to optimize the company’s financial structure by reducing borrowings under its revolving credit facility, maintaining the core terms of the original agreement, and ensuring continued financial stability with $500 million in outstanding borrowings post-amendment.

Iron Mountain Stockholders Approve Key Amendments and Elections

Iron Mountain Incorporated held its Annual Meeting of Stockholders on May 29, 2025, where several key decisions were made. The stockholders approved an amendment to the 2014 Stock and Cash Incentive Plan, increasing the authorized shares by 4.6 million and extending the plan’s termination date to 2035. Additionally, ten directors were elected for one-year terms, and a nonbinding advisory resolution on executive compensation was approved. Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Committee appointments were also confirmed, effective after the meeting.