IRON MOUNTAIN INC (IRM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IRM - US46284V1017 - REIT
93.84 USD
+0.25 (+0.27%)
93.84 USD
0 (0%)
Overall IRM gets a fundamental rating of 3 out of 10. We evaluated IRM against 30 industry peers in the Specialized REITs industry. While IRM is still in line with the averages on profitability rating, there are concerns on its financial health. IRM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year IRM was profitable.
- IRM had a positive operating cash flow in the past year.
- Each year in the past 5 years IRM has been profitable.
- In the past 5 years IRM always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.77%, IRM is doing worse than 66.67% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.86%, IRM is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for IRM is in line with the industry average of 4.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.77% | ||
| ROE | N/A | ||
| ROIC | 5.86% |
ROA(3y)1.82%
ROA(5y)2.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.88%
ROIC(5y)5.9%
1.3 Margins
- IRM's Profit Margin of 2.40% is on the low side compared to the rest of the industry. IRM is outperformed by 66.67% of its industry peers.
- IRM's Profit Margin has declined in the last couple of years.
- IRM has a Operating Margin of 19.94%. This is in the lower half of the industry: IRM underperforms 70.00% of its industry peers.
- IRM's Operating Margin has improved in the last couple of years.
- IRM has a Gross Margin (66.17%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of IRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.94% | ||
| PM (TTM) | 2.4% | ||
| GM | 66.17% |
OM growth 3Y-0.58%
OM growth 5Y1.53%
PM growth 3Y-33.64%
PM growth 5Y-14.13%
GM growth 3Y-1.38%
GM growth 5Y3.37%
2. Health
2.1 Basic Checks
- IRM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for IRM has been increased compared to 1 year ago.
- IRM has more shares outstanding than it did 5 years ago.
- IRM has a worse debt/assets ratio than last year.
2.2 Solvency
- IRM has an Altman-Z score of 0.90. This is a bad value and indicates that IRM is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.90, IRM perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.72
WACC8.1%
2.3 Liquidity
- IRM has a Current Ratio of 0.66. This is a bad value and indicates that IRM is not financially healthy enough and could expect problems in meeting its short term obligations.
- IRM has a Current ratio (0.66) which is in line with its industry peers.
- IRM has a Quick Ratio of 0.66. This is a bad value and indicates that IRM is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.66, IRM is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- IRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.73%.
- IRM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.69% yearly.
- IRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.88%.
- Measured over the past years, IRM shows a small growth in Revenue. The Revenue has been growing by 7.61% on average per year.
EPS 1Y (TTM)7.73%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%22.73%
Revenue 1Y (TTM)10.88%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%12.62%
3.2 Future
- The Earnings Per Share is expected to grow by 13.55% on average over the next years. This is quite good.
- IRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.91% yearly.
EPS Next Y12.57%
EPS Next 2Y13.78%
EPS Next 3Y13.55%
EPS Next 5YN/A
Revenue Next Year11.29%
Revenue Next 2Y10.95%
Revenue Next 3Y10.02%
Revenue Next 5Y7.91%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- IRM is valuated quite expensively with a Price/Earnings ratio of 48.12.
- IRM's Price/Earnings ratio is in line with the industry average.
- IRM is valuated expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 40.50, IRM can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as IRM.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, IRM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.12 | ||
| Fwd PE | 40.5 |
4.2 Price Multiples
- IRM's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.97 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IRM does not grow enough to justify the current Price/Earnings ratio.
- IRM's earnings are expected to grow with 13.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.83
PEG (5Y)4.12
EPS Next 2Y13.78%
EPS Next 3Y13.55%
5. Dividend
5.1 Amount
- IRM has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.51, IRM is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, IRM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
- The dividend of IRM has a limited annual growth rate of 1.86%.
- IRM has paid a dividend for at least 10 years, which is a reliable track record.
- IRM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.86%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
- 563.40% of the earnings are spent on dividend by IRM. This is not a sustainable payout ratio.
- The dividend of IRM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP563.4%
EPS Next 2Y13.78%
EPS Next 3Y13.55%
IRON MOUNTAIN INC / IRM FAQ
Can you provide the ChartMill fundamental rating for IRON MOUNTAIN INC?
ChartMill assigns a fundamental rating of 3 / 10 to IRM.
What is the valuation status for IRM stock?
ChartMill assigns a valuation rating of 1 / 10 to IRON MOUNTAIN INC (IRM). This can be considered as Overvalued.
What is the profitability of IRM stock?
IRON MOUNTAIN INC (IRM) has a profitability rating of 4 / 10.
What are the PE and PB ratios of IRON MOUNTAIN INC (IRM) stock?
The Price/Earnings (PE) ratio for IRON MOUNTAIN INC (IRM) is 48.12 and the Price/Book (PB) ratio is -31.45.
Is the dividend of IRON MOUNTAIN INC sustainable?
The dividend rating of IRON MOUNTAIN INC (IRM) is 5 / 10 and the dividend payout ratio is 563.4%.