IRON MOUNTAIN INC (IRM) Stock Fundamental Analysis
NYSE:IRM - New York Stock Exchange, Inc. - US46284V1017 - REIT - Currency: USD
Taking everything into account, IRM scores 3 out of 10 in our fundamental rating. IRM was compared to 30 industry peers in the Specialized REITs industry. IRM has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, IRM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year IRM was profitable.
IRM had a positive operating cash flow in the past year.
In the past 5 years IRM has always been profitable.
In the past 5 years IRM always reported a positive cash flow from operatings.
1.2 Ratios
IRM has a worse Return On Assets (0.63%) than 70.00% of its industry peers.
IRM's Return On Invested Capital of 5.91% is fine compared to the rest of the industry. IRM outperforms 66.67% of its industry peers.
IRM had an Average Return On Invested Capital over the past 3 years of 5.88%. This is in line with the industry average of 5.28%.
The 3 year average ROIC (5.88%) for IRM is below the current ROIC(5.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | N/A | ||
| ROIC | 5.91% |
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 has a worse Profit Margin (1.95%) than 70.00% of its industry peers.
IRM's Profit Margin has declined in the last couple of years.
IRM has a Operating Margin of 19.77%. This is in the lower half of the industry: IRM underperforms 73.33% of its industry peers.
In the last couple of years the Operating Margin of IRM has grown nicely.
Looking at the Gross Margin, with a value of 66.98%, IRM is doing worse than 60.00% of the companies in the same industry.
IRM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.77% | ||
| PM (TTM) | 1.95% | ||
| GM | 66.98% |
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.
Compared to 1 year ago, IRM has more shares outstanding
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 1.01. This is a bad value and indicates that IRM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IRM (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.74
WACC8.02%
2.3 Liquidity
IRM has a Current Ratio of 0.62. 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 (0.62) which is comparable to the rest of the industry.
IRM has a Quick Ratio of 0.62. 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 Quick ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for IRM have decreased by -0.56% in the last year.
Measured over the past years, IRM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.69% on average per year.
IRM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.04%.
IRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.61% yearly.
EPS 1Y (TTM)-0.56%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%0%
Revenue 1Y (TTM)11.04%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%7.83%
3.2 Future
Based on estimates for the next years, IRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
The Revenue is expected to grow by 7.60% on average over the next years.
EPS Next Y18.38%
EPS Next 2Y14.04%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue Next Year10.6%
Revenue Next 2Y9.58%
Revenue Next 3Y8.57%
Revenue Next 5Y7.6%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 56.17, the valuation of IRM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as IRM.
IRM is valuated expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
IRM is valuated quite expensively with a Price/Forward Earnings ratio of 43.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IRM is on the same level as its industry peers.
IRM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.17 | ||
| Fwd PE | 43.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRM is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as IRM's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)3.06
PEG (5Y)4.81
EPS Next 2Y14.04%
EPS Next 3Y12.49%
5. Dividend
5.1 Amount
IRM has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
IRM's Dividend Yield is slightly below the industry average, which is at 5.67.
IRM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of IRM has a limited annual growth rate of 1.86%.
IRM has been paying a dividend for at least 10 years, so it has a reliable track record.
IRM has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.86%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
667.77% of the earnings are spent on dividend by IRM. This is not a sustainable payout ratio.
IRM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP667.77%
EPS Next 2Y14.04%
EPS Next 3Y12.49%
100.54
-0.52 (-0.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners82.31%
Inst Owner Change0.91%
Ins Owners0.71%
Ins Owner Change-4.34%
Market Cap29.66B
Analysts77.14
Price Target118.32 (17.68%)
Short Float %3.51%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend2.7
Dividend Growth(5Y)1.86%
DP667.77%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.93%
Min EPS beat(2)-9.85%
Max EPS beat(2)5.99%
EPS beat(4)1
Avg EPS beat(4)-4.62%
Min EPS beat(4)-9.99%
Max EPS beat(4)5.99%
EPS beat(8)4
Avg EPS beat(8)-0.59%
EPS beat(12)7
Avg EPS beat(12)2.66%
EPS beat(16)10
Avg EPS beat(16)2.91%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)-1.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)0.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.11%
Revenue beat(12)2
Avg Revenue beat(12)-1.58%
Revenue beat(16)4
Avg Revenue beat(16)-1.16%
PT rev (1m)-0.61%
PT rev (3m)-5.11%
EPS NQ rev (1m)15.83%
EPS NQ rev (3m)-0.71%
EPS NY rev (1m)10.84%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.17 | ||
| Fwd PE | 43.19 | ||
| P/S | 4.73 | ||
| P/FCF | N/A | ||
| P/OCF | 23.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.6 |
EPS(TTM)1.79
EY1.78%
EPS(NY)2.33
Fwd EY2.32%
FCF(TTM)-3.02
FCFYN/A
OCF(TTM)4.29
OCFY4.26%
SpS21.24
BVpS-2.37
TBVpS-24.1
PEG (NY)3.06
PEG (5Y)4.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | N/A | ||
| ROCE | 7.5% | ||
| ROIC | 5.91% | ||
| ROICexc | 5.96% | ||
| ROICexgc | 9.8% | ||
| OM | 19.77% | ||
| PM (TTM) | 1.95% | ||
| GM | 66.98% | ||
| FCFM | N/A |
ROA(3y)1.82%
ROA(5y)2.2%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.88%
ROIC(5y)5.9%
ROICexc(3y)5.95%
ROICexc(5y)5.98%
ROICexgc(3y)10.42%
ROICexgc(5y)10.9%
ROCE(3y)7.47%
ROCE(5y)7.49%
ROICexcg growth 3Y-1.19%
ROICexcg growth 5Y-0.22%
ROICexc growth 3Y1.92%
ROICexc growth 5Y3.27%
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%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.58 | ||
| Cap/Depr | 234.82% | ||
| Cap/Sales | 34.38% | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | 58.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.01 |
F-Score5
WACC8.02%
ROIC/WACC0.74
Cap/Depr(3y)166.84%
Cap/Depr(5y)132%
Cap/Sales(3y)24%
Cap/Sales(5y)19.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.56%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%0%
EPS Next Y18.38%
EPS Next 2Y14.04%
EPS Next 3Y12.49%
EPS Next 5YN/A
Revenue 1Y (TTM)11.04%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%7.83%
Revenue Next Year10.6%
Revenue Next 2Y9.58%
Revenue Next 3Y8.57%
Revenue Next 5Y7.6%
EBIT growth 1Y8.81%
EBIT growth 3Y10.4%
EBIT growth 5Y9.25%
EBIT Next Year113.05%
EBIT Next 3Y36.78%
EBIT Next 5Y27.87%
FCF growth 1Y-6413.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y26.14%
OCF growth 3Y16.4%
OCF growth 5Y4.36%