Its time to breakdown another not so popular name. Here is the breakdown on $IRM otherwise known as Iron Mountain.
Current Price: $28.245
52/Wk High: $34.49
52/Wk Low: $21.00
Read below for the breakdown!
Iron Mountain is a not so popular holding company. Iron Mountains core segments include specializations in record storing (Physical Records) and back up media.
Not only that, but Iron Mountain also provides several information management services and is growing into the data center space.
Iron Mountain is attractive for many different reasons. First, of which the company has maintained a solid dividend, offering a quarterly payout of $0.6185 (9.13% Yield).
Secondly, the dividend has been growing at a steady pace, with the five-year dividend growth rate reaching 12.94% when last reported.
Third, the company has a history and has managed to build quite a customer base. Iron Mountain services 95% of the Fortune 1000 firms and maintained an excellent retention rate of 98%.
Taking a look at recent actions, Iron Mountain recently formed a joint venture worth roughly $300 million with affiliate AGC Equity Partners.
The joint venture will be split 80% to AGC and 20% to Iron Mountain. The goal of the venture is to develop, maintain, and manage a major data center, in Frankfurt Germany.
Finally, the data center is already underway and has been pre-leased to a customer within the Fortune 100 for the next 10 years.
Digging into the numbers, earnings haven’t been bad but could be better. Iron Mountain beat expectations in the most recent quarter, Q2, with an EPS of $0.22 versus the expected analyst’s consensus estimate of $0.13.
The company also maintained a steady revenue of $982 million, but it is important to note that revenues have fallen -7.93% since Q2 of 2019.
Taking a look at the balance sheet the numbers are just as mixed as Q2 earnings. According to the most recent quarterly report, Iron Mountains Total Debt sat at $9.694 billion along with Total Liabilities also moving higher to $13.343 billion.
On the bright side though, Iron Mountain management has managed to keep some cash on hand. As of Q2 cash and short-term investments sat at a minimal level of $907 million, up $754 million since Q1.
Taking a look at where Iron Mountain stock currently trades, below are several key ratios to follow;
Price to Earnings: 35.58x
Price to Sales: 1.86x
Price to Book: 7.62x
Price to Cash Flow: 12.42x
Market Cap: $7.9 billion
Given the mixed numbers across the board, analysts are bullish on the name. Currently, the mean price target sits at $32.00/share, representing a 13.31% upside from its current share price of $28.26/share.
The big money is also bullish on $IRM, with the total institutional ownership level currently sitting at 81.02%. Top holders include The Vanguard Group, Capital World Investors, and BlackRock Institutional Trust.
When it comes to the charts, the technicals are not bad. According to the six-month charts the MACD currently sits from -0.3642 down to -0.5418 and recently diverged, moving back to the upside on a momentum basis.
Furthermore, the six-month RSI currently sits at 54.43 neither good nor bad. Finally, the six-month CCI sits at 63.91 and $IRM currently trades roughly six points off its highs.
Overall, Iron Mountain has not done much over the past several years and has run mostly flat since its IPO just last year.
In short, Iron Mountain has an interesting business and excellent dividend. If you are a long-term investor, I believe its a solid long-term play that pays you to hold. On the otherhand, I do not expect rapid growth in the short term.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply opinion based on independent research.