📊 IRM Key Takeaways
Is Iron Mountain Inc. (IRM) a Good Investment?
Iron Mountain exhibits fundamental weakness despite revenue growth, with deteriorating profitability (net income down 5% YoY), severely negative free cash flow of -$931.6M, and critical balance sheet distress evidenced by negative stockholders' equity of -$981M. The company's highly leveraged capital structure with $16.4B in long-term debt against negative equity raises substantial concerns about financial sustainability and dividend safety for a REIT.
Iron Mountain shows solid top-line momentum and healthy operating profitability, with revenue up 12.2% year over year and operating income reaching $1.16B. However, earnings quality is constrained by thin net margins, declining EPS, heavy leverage, negative equity, and deeply negative free cash flow driven by elevated capital spending. The fundamentals support a balanced view: the business is growing, but the balance sheet and cash flow profile materially raise risk.
Why Buy Iron Mountain Inc. Stock? IRM Key Strengths
- Revenue growth of 12.2% YoY demonstrates top-line expansion in core business
- Operating income of $1.2B and 16.9% operating margin show core operations generate acceptable returns before financing costs
- Operating cash flow of $1.3B provides some cash generation from operations
- Interest coverage ratio of 4.5x indicates current ability to service debt obligations
- Revenue growth remains strong at 12.2% year over year, indicating durable demand and expansion capacity
- Operating margin of 16.9% and $1.34B of operating cash flow show the core business remains cash generative
- Interest coverage of 4.5x suggests debt service is currently manageable despite a large debt load
IRM Stock Risks: Iron Mountain Inc. Investment Risks
- Negative free cash flow of -$931.6M indicates capital expenditures ($2.3B) significantly exceed operating cash generation, limiting capital return capacity
- Negative stockholders' equity of -$981M represents severe balance sheet deterioration and technical insolvency on accounting basis
- Net income declined 5% YoY despite 12.2% revenue growth, showing profitability deterioration and margin compression
- Poor liquidity position with current ratio of 0.74x below 1.0x threshold creates near-term refinancing risk
- Diluted EPS declined 19.7% YoY, indicating shareholder value destruction despite operational growth
- High leverage with $16.4B debt against negative equity creates structural financial fragility
- Long-term debt of $16.43B and negative stockholders equity indicate an aggressive capital structure
- Free cash flow of negative $931.63M and capex of $2.27B raise concerns about cash conversion and funding needs
- Low liquidity, with a 0.74x current ratio and 0.73x quick ratio, leaves less flexibility if operating conditions weaken
Key Metrics to Watch
- Free cash flow trend and path to positive FCF generation
- Stockholders' equity recovery trajectory and deleveraging progress
- Operating margin sustainability amid capital intensity
- Debt reduction initiatives and refinancing capacity
- Operating cash flow stability relative to capital expenditure obligations
- Free cash flow improvement relative to capital expenditures
- Leverage and interest coverage trends versus operating cash flow
Iron Mountain Inc. (IRM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
IRM Profit Margin, ROE & Profitability Analysis
IRM vs Real Estate Sector: How Iron Mountain Inc. Compares
How Iron Mountain Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Iron Mountain Inc. Stock Overvalued? IRM Valuation Analysis 2026
Based on fundamental analysis, Iron Mountain Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Iron Mountain Inc. Balance Sheet: IRM Debt, Cash & Liquidity
IRM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Iron Mountain Inc.'s revenue has grown significantly by 326% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.63 reflects profitable operations.
IRM Revenue Growth, EPS Growth & YoY Performance
IRM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | -$33.7M | $-0.11 |
| Q2 2025 | $1.5B | -$27.1M | $-0.10 |
| Q1 2025 | $1.5B | $16.2M | $0.05 |
| Q3 2024 | $1.4B | -$33.7M | $-0.11 |
| Q2 2024 | $1.4B | $1.1M | $0.00 |
| Q1 2024 | $1.3B | $65.5M | $0.22 |
| Q3 2023 | $1.3B | $91.4M | $0.31 |
| Q2 2023 | $1.3B | $1.1M | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Iron Mountain Inc. Dividends, Buybacks & Capital Allocation
IRM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Iron Mountain Inc. (CIK: 0001020569)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IRM
What is the AI rating for IRM?
Iron Mountain Inc. (IRM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IRM's key strengths?
Claude: Revenue growth of 12.2% YoY demonstrates top-line expansion in core business. Operating income of $1.2B and 16.9% operating margin show core operations generate acceptable returns before financing costs. ChatGPT: Revenue growth remains strong at 12.2% year over year, indicating durable demand and expansion capacity. Operating margin of 16.9% and $1.34B of operating cash flow show the core business remains cash generative.
What are the risks of investing in IRM?
Claude: Negative free cash flow of -$931.6M indicates capital expenditures ($2.3B) significantly exceed operating cash generation, limiting capital return capacity. Negative stockholders' equity of -$981M represents severe balance sheet deterioration and technical insolvency on accounting basis. ChatGPT: Long-term debt of $16.43B and negative stockholders equity indicate an aggressive capital structure. Free cash flow of negative $931.63M and capex of $2.27B raise concerns about cash conversion and funding needs.
What is IRM's revenue and growth?
Iron Mountain Inc. reported revenue of $6.9B.
Does IRM pay dividends?
Iron Mountain Inc. pays dividends, with $919.4M distributed to shareholders in the trailing twelve months.
Where can I find IRM SEC filings?
Official SEC filings for Iron Mountain Inc. (CIK: 0001020569) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IRM's EPS?
Iron Mountain Inc. has a diluted EPS of $0.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IRM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Iron Mountain Inc. has a SELL rating with 79% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IRM stock overvalued or undervalued?
Valuation metrics for IRM: ROE of N/A (sector avg: 8%), net margin of 2.1% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy IRM stock in 2026?
Our dual AI analysis gives Iron Mountain Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IRM's free cash flow?
Iron Mountain Inc.'s operating cash flow is $1.3B, with capital expenditures of $2.3B. FCF margin is -13.5%.
How does IRM compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 2.1% (avg: 20%), ROE N/A (avg: 8%), current ratio 0.74 (avg: 1.5).