Iron Mountain Incorporated Fundamental Analysis (NYSE: IRM)
Iron Mountain Incorporated (NYSE: IRM) shows weak financial fundamentals with a PE ratio of 90.64, profit margin of 5.54%, and ROE of -38.42%. The company generates $7.6B in annual revenue with strong year-over-year growth of 12.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 152.3/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze IRM's fundamental strength across five key dimensions:
Efficiency Score
WeakIRM struggles to generate sufficient returns from assets.
Valuation Score
ModerateIRM shows balanced valuation metrics.
Growth Score
ModerateIRM shows steady but slowing expansion.
Financial Health Score
ModerateIRM shows balanced financial health with some risks.
Profitability Score
WeakIRM struggles to sustain strong margins.
Key Financial Metrics
Is IRM Expensive or Cheap?
P/E Ratio
IRM trades at 90.64 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IRM's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values Iron Mountain Incorporated at -29.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.31 times EBITDA. This is generally considered low.
How Well Does IRM Make Money?
Net Profit Margin
For every $100 in sales, Iron Mountain Incorporated keeps $5.54 as profit after all expenses.
Operating Margin
Core operations generate 18.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-38.42 in profit for every $100 of shareholder equity.
ROA
Iron Mountain Incorporated generates $1.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Iron Mountain Incorporated produces operating cash flow of $1.65B, showing steady but balanced cash generation.
Free Cash Flow
Iron Mountain Incorporated generates weak or negative free cash flow of $-480.67M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.62 in free cash annually.
FCF Yield
IRM converts -1.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
90.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-29.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-15.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.38
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How IRM Stacks Against Its Sector Peers
| Metric | IRM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 90.64 | 24.44 | Worse (Expensive) |
| ROE | -38.42% | 767.00% | Weak |
| Net Margin | 5.54% | 2573.00% | Weak |
| Debt/Equity | -15.31 | -36.95 (disorted) | Distorted |
| Current Ratio | 0.73 | 37.96 | Weak Liquidity |
| ROA | 1.91% | 257.00% | Weak |
IRM outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Iron Mountain Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.35%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-58.84%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
32.36%
Industry Style: Income, Inflation Hedge, REIT
High Growth