IRON MOUNTAIN INC (IRM) Stock Fundamental Analysis
USA - NYSE:IRM - US46284V1017 - REIT
104.58 USD
-1.21 (-1.14%)
104.58 USD
0 (0%)
Overall IRM gets a fundamental rating of 3 out of 10. We evaluated IRM against 29 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
IRM had positive earnings in the past year.
IRM had a positive operating cash flow in the past year.
Each year in the past 5 years IRM has been profitable.
Each year in the past 5 years IRM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.20%, IRM is doing worse than 68.97% of the companies in the same industry.
IRM has a Return On Invested Capital of 5.79%. This is in the better half of the industry: IRM outperforms 68.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IRM is in line with the industry average of 4.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | N/A | ||
| ROIC | 5.79% |
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
Looking at the Profit Margin, with a value of 0.64%, IRM is doing worse than 68.97% of the companies in the same industry.
In the last couple of years the Profit Margin of IRM has declined.
IRM has a Operating Margin of 19.61%. This is in the lower half of the industry: IRM underperforms 75.86% of its industry peers.
IRM's Operating Margin has improved in the last couple of years.
IRM's Gross Margin of 66.77% is on the low side compared to the rest of the industry. IRM is outperformed by 62.07% of its industry peers.
In the last couple of years the Gross Margin of IRM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.61% | ||
| PM (TTM) | 0.64% | ||
| GM | 66.77% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IRM is destroying value.
IRM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, IRM has more shares outstanding
The debt/assets ratio for IRM is higher compared to a year ago.
2.2 Solvency
IRM has an Altman-Z score of 1.00. 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 (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACC0.74
WACC7.81%
2.3 Liquidity
IRM has a Current Ratio of 0.63. 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 Current ratio, with a value of 0.63, IRM is in line with its industry, outperforming 48.28% of the companies in the same industry.
IRM has a Quick Ratio of 0.63. 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 (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
IRM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.65%.
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.
The Revenue has grown by 10.72% in the past year. This is quite good.
The Revenue has been growing slightly by 7.61% on average over the past years.
EPS 1Y (TTM)1.65%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%14.29%
Revenue 1Y (TTM)10.72%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%11.57%
3.2 Future
IRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.69% yearly.
Based on estimates for the next years, IRM will show a quite strong growth in Revenue. The Revenue will grow by 8.04% on average per year.
EPS Next Y16.69%
EPS Next 2Y14.45%
EPS Next 3Y13.69%
EPS Next 5YN/A
Revenue Next Year11.34%
Revenue Next 2Y10.35%
Revenue Next 3Y9.38%
Revenue Next 5Y8.04%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 56.53, which means the current valuation is very expensive for IRM.
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 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 44.60, the valuation of IRM can be described as expensive.
IRM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, IRM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.53 | ||
| Fwd PE | 44.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IRM is valued a bit more expensive than the industry average as 62.07% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.9 |
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 13.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.39
PEG (5Y)4.84
EPS Next 2Y14.45%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, IRM has a reasonable but not impressive dividend return.
IRM's Dividend Yield is slightly below the industry average, which is at 5.76.
IRM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.86%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
2070.61% 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.
DP2070.61%
EPS Next 2Y14.45%
EPS Next 3Y13.69%
104.58
-1.21 (-1.14%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners85.6%
Inst Owner Change0%
Ins Owners0.66%
Ins Owner Change1.03%
Market Cap30.89B
Analysts78.75
Price Target115.39 (10.34%)
Short Float %2.96%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend2.7
Dividend Growth(5Y)1.86%
DP2070.61%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.52%
Min EPS beat(2)-4.95%
Max EPS beat(2)5.99%
EPS beat(4)1
Avg EPS beat(4)-4.7%
Min EPS beat(4)-9.99%
Max EPS beat(4)5.99%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)6
Avg EPS beat(12)1.12%
EPS beat(16)9
Avg EPS beat(16)2.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-1.09%
Max Revenue beat(2)0.7%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.21%
Max Revenue beat(4)0.7%
Revenue beat(8)3
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-1.35%
Revenue beat(16)4
Avg Revenue beat(16)-1.2%
PT rev (1m)-2.57%
PT rev (3m)-2.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.53 | ||
| Fwd PE | 44.6 | ||
| P/S | 4.79 | ||
| P/FCF | N/A | ||
| P/OCF | 24.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.9 |
EPS(TTM)1.85
EY1.77%
EPS(NY)2.34
Fwd EY2.24%
FCF(TTM)-3.58
FCFYN/A
OCF(TTM)4.26
OCFY4.07%
SpS21.82
BVpS-2.6
TBVpS-24.52
PEG (NY)3.39
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | N/A | ||
| ROCE | 7.36% | ||
| ROIC | 5.79% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 9.49% | ||
| OM | 19.61% | ||
| PM (TTM) | 0.64% | ||
| GM | 66.77% | ||
| 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-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.64 | ||
| Cap/Depr | 239.24% | ||
| Cap/Sales | 35.91% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 56.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1 |
F-Score4
WACC7.81%
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)1.65%
EPS 3Y5.37%
EPS 5Y11.69%
EPS Q2Q%14.29%
EPS Next Y16.69%
EPS Next 2Y14.45%
EPS Next 3Y13.69%
EPS Next 5YN/A
Revenue 1Y (TTM)10.72%
Revenue growth 3Y11.04%
Revenue growth 5Y7.61%
Sales Q2Q%11.57%
Revenue Next Year11.34%
Revenue Next 2Y10.35%
Revenue Next 3Y9.38%
Revenue Next 5Y8.04%
EBIT growth 1Y8.06%
EBIT growth 3Y10.4%
EBIT growth 5Y9.25%
EBIT Next Year116.77%
EBIT Next 3Y38.08%
EBIT Next 5Y31.92%
FCF growth 1Y-751.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.28%
OCF growth 3Y16.4%
OCF growth 5Y4.36%