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Iron Mountain Inc. (IRM)
NYSE:IRM
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Iron Mountain
(NYSE:IRM)
Rating:69Neutral
Price Target:―
Positive Factors
Guidance and Revenue
A bump to guidance and optimistic commentary on sales funnels across data centers, ALM and digital services should provide support for IRM, which offers one of the most attractive growth-adjusted multiples in all of REITs.
Revenue Growth
IRM put up ~22% organic growth in ALM, with expectations of ~25%+ this year, and appears relatively insulated from tariff fears.
Strategic Role of Digital Solutions
Iron Mountain's Digital Solutions play an important strategic role, with significant potential seen in its content management platform, Insight DXP.
Negative Factors
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 (IRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.39B
Dividend Yield2.99%
Average Volume (3M)1.55M
Price to Earnings (P/E)234.5
Beta (1Y)1.08
Revenue Growth11.04%
EPS Growth-37.29%
CountryUS
Employees28,850
SectorReal Estate
Sector Strength64
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.43
Shares Outstanding295,043,880
10 Day Avg. Volume1,327,032
30 Day Avg. Volume1,548,356
Financial Highlights & Ratios
PEG Ratio-7.14
Price to Book (P/B)-40.93
Price to Sales (P/S)0.00
P/FCF Ratio-33.69
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit13.88
Enterprise Value/Ebitda4.97
Forecast
1Y Price Target
$107.60Price Target Upside11.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Iron Mountain Business Overview & Revenue Model
Company DescriptionIron Mountain Incorporated (IRM) is a global leader in storage and information management services, serving customers in over 50 countries. Founded in 1951, the company specializes in the preservation and protection of corporate information and assets. Its core services include records management, data backup and recovery, information destruction, and data centers. Iron Mountain serves a wide range of industries, including healthcare, financial services, energy, and legal, helping businesses reduce risk and ensure compliance with information management regulations.
How the Company Makes MoneyIron Mountain generates revenue through a diversified range of services centered around the management, protection, and storage of information and assets. The company's primary revenue streams include records management, where it offers physical storage solutions for documents and data tapes in secure facilities. Additionally, Iron Mountain provides data management services, including cloud storage and data center colocation, catering to the growing demand for digital data storage. The company also earns through secure destruction services, offering shredding and secure disposal of sensitive information. Key partnerships with technology firms further enhance its digital solutions, while its global footprint allows Iron Mountain to leverage economies of scale and maintain long-term contracts with major corporations, contributing significantly to its earnings.
Iron Mountain Key Performance Indicators (KPIs)
Any
Revenue by Product Offering
Highlights earnings from different products, showing which offerings drive the most revenue and indicating potential areas for growth or diversification.
Highlights earnings from different products, showing which offerings drive the most revenue and indicating potential areas for growth or diversification.
Data provided by:
Main Street Data
Main Street DataIron Mountain Financial Statement Overview
Summary
Iron Mountain shows strong revenue and EBITDA growth with efficient operations. However, negative equity and high leverage present financial risks, necessitating careful management of debt and expenditures. Strong cash generation is evident, but negative free cash flow needs addressing 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.74
Positive
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.60
Neutral
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.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.27B | 6.15B | 5.48B | 5.10B | 4.49B | 4.15B | Gross Profit |
| 3.29B | 3.45B | 3.12B | 2.91B | 2.60B | 2.39B | EBIT |
| 1.07B | 1.01B | 921.78M | 1.05B | 854.17M | 645.10M | EBITDA |
| 2.40B | 1.86B | 1.62B | 1.87B | 1.75B | 1.30B | Net Income Common Stockholders |
| 122.05M | 180.16M | 184.23M | 556.98M | 450.22M | 342.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 155.34M | 155.72M | 222.79M | 141.80M | 255.83M | 205.06M | Total Assets |
| 19.36B | 18.72B | 17.47B | 16.14B | 14.45B | 14.15B | Total Debt |
| 17.14B | 16.37B | 14.79B | 13.29B | 11.44B | 10.75B | Net Debt |
| 16.98B | 16.21B | 14.56B | 13.15B | 11.19B | 10.54B | Total Liabilities |
| 19.79B | 18.94B | 17.08B | 15.50B | 13.59B | 13.01B | Stockholders Equity |
| -698.52M | -503.12M | 211.65M | 636.67M | 857.07M | 1.14B |
| Cash Flow | Free Cash Flow | ||||
| -850.19M | -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 |
| -2.38B | -2.14B | -1.44B | -1.66B | -473.31M | -85.44M | Financing Cash Flow |
| 1.09B | 876.75M | 425.67M | 639.21M | -220.81M | -886.70M |
Iron Mountain Technical Analysis
Neutral
96.21
Price Trends
89.32
Positive
93.62
Positive
103.88
Negative
Market Momentum
2.62
Positive
55.89
Neutral
15.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRM, the sentiment is Neutral. The current price of 96.21 is above the 20-day moving average (MA) of 96.08, above the 50-day MA of 89.32, and below the 200-day MA of 103.88, indicating a neutral trend. The MACD of 2.62 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IRM.
Iron Mountain Risk Analysis
Iron Mountain disclosed 38 risk factors in its most recent earnings report. Iron Mountain reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Our customers continue to evolve the way they store records, which could impact our storage revenue. Q4, 2024
Iron Mountain Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.08B | 33.66 | 6.46% | 4.47% | 14.72% | -4.21% | |
73 Outperform | $26.75B | 26.65 | 9.01% | 3.98% | 3.91% | 8.78% | |
73 Outperform | $16.19B | 105.21 | 2.47% | 3.48% | 0.56% | -73.40% | |
69 Neutral | $28.39B | 234.49 | -35.81% | 2.99% | 11.04% | -37.29% | |
63 Neutral | $15.31B | 189.70 | 1.44% | 3.16% | -6.88% | -45.29% | |
60 Neutral | $2.76B | 10.33 | 0.49% | 8508.28% | 5.95% | -17.56% | |
57 Neutral | $43.51B | 33.81 | -198.54% | 6.26% | -12.57% | -375.80% |
* Real Estate Sector Average
Performance Comparison
IRM
Iron Mountain
96.21
18.28
23.46%
CCI
Crown Castle
100.16
7.90
8.56%
EQR
Equity Residential
67.61
4.34
6.86%
EXR
Extra Space Storage
145.73
8.88
6.49%
SUI
Sun Communities
119.93
9.87
8.97%
CPT
Camden Property
113.03
13.01
13.01%
Iron Mountain Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 7.29%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Iron Mountain delivered strong first-quarter results with record revenue and growth across key segments. Despite challenges in leasing activity and flat pricing in ALM, the overall performance was robust with significant customer wins and increased guidance.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Iron Mountain achieved all-time high quarterly revenue of $1.6 billion, representing 8% year-over-year growth, and record first-quarter adjusted EBITDA of $580 million, an increase of 12% compared to last year.
Strong Performance in Key Business Units
The portfolio of growth businesses, including data center, digital solutions, and asset lifecycle management, collectively grew more than 20% in the quarter. The traditional records business also achieved record results.
Significant Customer Wins and Cross-Selling Success
Iron Mountain secured multiple records management and ALM deals, enhancing customer value and cross-selling success. Notable contracts include a 10-year contract in the UK and a significant order from the Department of Treasury valued at approximately $140 million.
Data Center Segment Surge
The data center business experienced revenue growth of over 20% year-over-year, with a 24% organic storage growth. New commencements were 12 megawatts, and the business anticipates 125 megawatts of total new leasing.
Asset Lifecycle Management Growth
The ALM business achieved 44% reported revenue growth, including 22% organic growth. The acquisition of Premier Surplus is expected to add approximately $10 million to full-year results.
Negative Updates
Challenges in Leasing Activity
The leasing activity in the data center business was uncharacteristically low for the last three quarters, with no new hyperscale contracts signed in the first quarter.
Flat to Slightly Down Pricing in ALM
In the ALM business, downstream pricing was largely flat to slightly down, which could impact future revenue projections.
Company Guidance
During the Iron Mountain First Quarter 2025 Earnings Call, the company reported robust financial performance, achieving record quarterly revenue of $1.6 billion, which represents an 8% year-over-year growth, and record first-quarter adjusted EBITDA of $580 million, reflecting a 12% increase from the previous year. Excluding foreign exchange effects, revenue and adjusted EBITDA grew by 9% and 13%, respectively. The company's growth businesses, including data center, digital solutions, and asset lifecycle management (ALM), collectively expanded by over 20%. The traditional records business also achieved record results, contributing to sustainable double-digit revenue and profit growth. The company's commercial team has made significant progress in executing its strategy, with notable customer wins and cross-selling success. The full-year 2025 guidance was increased, projecting total revenue in the range of $6.74 billion to $6.89 billion and adjusted EBITDA between $2.505 billion and $2.555 billion, driven by continued strong performance and positive market outlook.Iron Mountain Corporate Events
Executive/Board Changes
Iron Mountain Appoints June Yee Felix as Director
Neutral
Dec 9, 2024
June Yee Felix, a seasoned leader in the financial services and technology sectors, has been appointed as a director of the Company effective January 1, 2025. With her impressive background as Group CEO of IG Group and roles at Citibank, IBM, and Chase Manhattan Bank, Felix brings vast experience to the Audit and Risk and Safety Committees. Her compensation will include restricted stock units under the Company’s incentive plan, enhancing her alignment with shareholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.