IRM.N Hits 20-Day Low Amid Valuation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2025
0mins
Should l Buy IRM?
Source: Yahoo Finance
Shares of Iron Mountain (IRM.N) declined sharply today, hitting a 20-day low as the stock continues to struggle amidst broader market pressures. Year-to-date, the stock has fallen 12.8% and 17.9% over the past year, despite a remarkable 343.3% increase over the last five years, raising questions about its current valuation.
The recent technical breakdown signals increased bearish momentum, as investors weigh the company's growth in data center operations against its perceived overvaluation. According to a Discounted Cash Flow (DCF) analysis, IRM is currently undervalued by 58.8%, with an intrinsic value of $221.71 per share, suggesting significant upside potential if market conditions improve.
Additionally, Iron Mountain's price-to-sales ratio of 4.07x remains below the industry average of 7.13x, further indicating that the stock is trading at a discount relative to its peers. As investors navigate these dynamics, the introduction of 'Narratives' may offer a personalized approach to aligning expectations with financial forecasts, adapting strategies to the evolving market landscape.
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Analyst Views on IRM
Wall Street analysts forecast IRM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IRM is 124.50 USD with a low forecast of 111.00 USD and a high forecast of 139.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
0 Hold
1 Sell
Moderate Buy
Current: 88.950
Low
111.00
Averages
124.50
High
139.00
Current: 88.950
Low
111.00
Averages
124.50
High
139.00
About IRM
Iron Mountain Incorporated is a provider of information management services. The Company offers a range of services across digital transformation, information security, data center and asset lifecycle management (ALM) needs. The Company helps businesses to unlock value and intelligence from their stored digital and physical assets. It serves to protect its customers’ work. The Company operates through two segments: Global Records and Information Management (Global RIM) Business and Global Data Center Business. The Global RIM Business segment offers various offerings, including records management, data management, global digital solutions, secure shredding, entertainment services, and consumer storage. Its Global Data Center Business segment provides data center facilities and capacity to protect mission-critical assets and ensure the continued operation of its customers’ information technology (IT) infrastructure with flexible data center options.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diverse Investment Opportunities: Analysts suggest that investors can engage in data center buildouts through various avenues, including companies like Hewlett Packard Enterprise that specialize in high-performance computing systems, which are expected to benefit from AI and data center demand.
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- Strong Year-to-Date Performance: Year-to-date, Iron Mountain's stock has increased nearly 7%, significantly outperforming the S&P 500's 2% rise, showcasing its relative strength in the market.
- Divergent Analyst Ratings: While Seeking Alpha assigns a Strong Sell rating with a score of 1.33 and D grades for momentum and valuation, Wall Street analysts remain bullish, issuing Buy ratings, reflecting differing views on the company's future potential.
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