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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Iron Mountain Incorporated (XNYS:IRM) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
IRM
Name:
IRON MOUNTAIN INCORPORATED (XNYS:IRM)
Sector:
- 108457.00K
Industry:
REIT�Specialty
CEO:
Mr. William Meaney
Total Employees:
26,750
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 20.78% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF IRON MOUNTAIN INCORPORATED(IRM) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND REIT�SPECIALTY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
52.13
One Month Price Target:
$52.36
Six Month Price Target :
$53.5
Likely Price in One Year's Time:
Ticker:
$54.87
Likely Trading Range Today Under (Normal Volatility)
$51.97
Price Upper limit ($) :
$52.38
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$49.7
This week:
$46.69
This month :
$41.25
Other Primary facts
Market Cap:
15.15B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
290.68M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
12.%
-15.04%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$63.41
$58.17
$40.85
$46.09
Medium risk (<10%) entry points
Buy Call
Sell Call
$56.46
Buy Put:
Sell Put:
$55.34
$47.78
$48.92
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
IRM
Sharpe Ratio:
3.72%
Comparison:
IRM, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 88.30% higher than the industry
& ratio is 63.01% higher than the market/S&P 500 average
Average Returns/Yield of
IRM
Daily returns:
0.09%
Weekly returns:
0.47%
Monthly returns:
1.90%
Yearly returns:
14.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is 54.30% above industry average
Classification:
IRM, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.71
Statistical test of Returns:
IRM has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.32%
Weekly Volatility:
5.18%
Monthly Volatility:
10.37%
Yearly Volatility:
35.91%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.55%
Volatility in last five trading days has been -33.02% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.67%
Weekly VaR:
-10.43%
Monthly VaR:
-20.86%
How Much Can the price of
IRM
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-17%
Worst case (decline):
-72.27%
This translates to price declining to:
$43.08
This translates to price declining to:
$14.45
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
IRM is a 47.26% riskier investment compared to the market/S&P 500 & is 26.15% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -17.46% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
IRM
Beta in relation to market/S&P 500--0.78
Expected beta in 1 year's time:
0.785
Expected beta in 3 year's time:
1.11
Unlevered (debt free) Beta:
0.061
Beta in relation to Nasdaq (XNAS):
0.621
Beta in relation to all global stocks::
0.74
Beta Comparison & Analysis
Beta of competitors/peers::
0.949
Beta is -17.62% lower than peers
Average Industry Beta:
0.954
Beta is -18.05% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.143
Alpha is 180.79% above industry average alpha yield
Alpha is 910% higher than market/& is unsustainably high
Analysis of Cost of Capital of
IRM
Equity cost of capital:
0.085
Equity cost of capital is -12.18% below industry mean WACC
Unlevered (without debt) cost of capital:
0.67%
Before-tax cost of debt:
3.48%
After-tax cost of debt:
2.75%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.75%
WACC is -35.06% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$16.02
Revenue growth rate per share of (3Y):
18.21
Annual revenue growth rate is -70.72% below industry average
EPS:
$1.53
Expected Annual growth rate of EPS (3Y):
18.56%
Expected future EPS growth rate is -31.03% lower than the REIT�Specialty industry
Free cash flow (FCF) per share:
$0.36
Balance sheet equity growth per share: 5.33%
Equity growth rate per share is -57.04% lower than the industry
Debt per share
$42.45
EBITDA per share
$6.08
Valuation Analysis Today of
IRM
P/E Ratio:
40.94
P/E Ratio of Competitors/Peers:
27.77
P/E ratio is 47.43% higher than main peers & is -50.74% lower than the industry
Stock price/value with industry average P/E ratio: $127.17
IRM is -59.01% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $43.78
Present value of the expected future dividends only: $29.03
P/S (Price to Sales ratio):
3.25
Price to sales ratio is -55.32% below the industry mean
P/B (Price to book value ratio):
18.21
Price to free cash flow: 145.77
Price to free cash flow ratio is 72.84% higher than the industry
Net income growth rate (3Y):
22.39%
Net income growth rate is -91.63% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 41.25%
Dividend yeild: 4.74%
Previous Dividend: $0.62
Previous adjusted dividend: $0.62
Previous Dividend: $2.47
Expected next dividend best case: $0.62
Expected next dividend worst case: $0.62
Average dividend payment (long-term): $0.62
Average dividend increase/decrease (growth rate) % per period: -0.01%
Expected next dividend payment date: 14/10/2022
Expected next dividend record date: 13/09/2022
-
Previous dividend payment date: 16/07/2022
Previous dividend record date: 15/06/2022
-
Dividend History:
2022-06-14--$0.62
2021-12-14--$0.62
2021-06-14--$0.62
2022-03-14--$0.62
2021-09-14--$0.62
2021-03-12--$0.62
Dividend growth rate is -100.02% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
1628.54%
Net debt to equity ratio:
1614.76%
Debt to assets ratio:
78.96%
Net debt to assets ratio:
78.29%
Debt-to-asset ratio is 2.56% above industry average
Ability to repay debt:
Interest coverage ratio:
4.08
Interest coverage ratio is -22.63% less than industry average
Looking forward:
Debt growth rate:
6.41%
Annual debt growth is 113% higher than industry average debt growth rate
Debt repayment rate in last quarter: 15.59%
Analysis of Key Statistics
Correlation of price movement with the market:
0.589
Statistical significance of correlation:
IRM has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.604
Stock price is -2.46% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.604
Correlation of price movement with Nasdaq (^IXIC):
0.069
Covariance of price movement with the market:
0.093
Kurtosis
6.599
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.148
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
IRM
Gross Profit Margin Ratio:
230%
Operating Profit Margin Ratio:
19.45%
Operating profit margin is 7.61% higher than the industry
Net Profit Margin Ratio:
230%
Effective Tax Rate:
27.72%
Effective tax rate is 159.80% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
58.98%
Return on equity (ROE) is 221.93% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
2.86%
Return on assets (ROA) is -44.04% lower than the industry
Financial Leverage:
4.8x
Current Ratio:
0.9
Current ratio is -48.97% below industry average
Cash Conversion Cycle (days):
6.7
Cash conversion cycle is -85.02% below industry average
The remaining useful life of property plant & equipment is: 12.0 years
Stock based compensation to net income ratio:
2.54%
In-depth Efficiency Analysis
Revenue generated per employee:
174.1K
Each employee generates -98% less revenue than industry average revenue per employee
EBITDA generated per employee:
66.0K
Each employee generates -99% less EBITDA than industry average revenue per employee
Profit generated per employee:
16.7K
Each employee generates -99% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 4.1K
Each employee generates -100% less free cash flow than industry average revenue per employee
Assets/Capital per employee
527.1K
Each employee generates -100% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
IRM
MAA-PI
AMERICAN HOMES 4 RENT (XNYS:AMH)
MEDICAL PROPERTIES TRUST, INC. (XNYS:MPW)
HOST HOTELS & RESORTS, INC. (XNAS:HST)
JONES LANG LASALLE INCORPORATED (XNYS:JLL)
VNO-PM
EQUITY LIFESTYLE PROPERTIES, INC. (XNYS:ELS)
W.P. CAREY INC. (XNYS:WPC)
KIMCO REALTY CORPORATION (XNYS:KIM)
Current Analyst Ratings
Strong buy�4%
Buy�8%
Hold�8%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
4.66B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.98B
2.68B
-
777.67M
1.04B
266.89M
698.40M
1.74B
4.77M
432.75M
714.94M
1.77B
905.90M
446.92M
619.53M
171.73M
446.92M
Statement of Cash Flow
Date:
Period:
183.62M
Differed Income Tax :
- 10142.00K
Stock Based Compensation :
11.34M
Change in Working Capital :
- 241015.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
69.00M
Net Cash Provided by Operating Activities:
54.51M
Investments in PP&E:
-
Net Acquisitions:
- 717907.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
195.66M
-
195.66M
1.06B
-
268.31M
1.53B
2.34B
5.02B
1.58B
-
-
5.15B
14.10B
-
15.63B
424.06M
91.18M
-
301.97M
883.32M
1.70B
12.34B
407.83M
13.10B
-
14.80B
2.91M
- 3359876.00K
- 294358.0K
4.41B
March 31, 2022 at 6:00:00 AM
3.72B
757.72M
15.55B
-
12.43B
12.2B
-
- 171847.00K
- 889754.00K
- 2279565.00K
-
-
- 184361.00K
3.24B
771.55M
3.53M
- 60168.00K
195.66M
255.83M
54.51M
- 162963.00K
- 108457.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
IRM
2023
2024
2025
2026
2027
$65.46
$68.89
$72.51
$76.32
$80.33