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Assessing Iron Mountain (IRM) Valuation As Data Center Shift Draws Fresh Analyst Attention

Simply Wall St · 01/06 00:20

Iron Mountain’s evolving story draws fresh investor attention

Recent commentary on Iron Mountain (IRM) has focused on its shift from traditional records storage toward data centers and digital services. This transition is influencing how investors evaluate the stock today.

See our latest analysis for Iron Mountain.

At a share price of $83.24, Iron Mountain has seen a 21.39% decline in its 90 day share price return, even as its 1 year total shareholder return of 16.62% decline contrasts with very strong 3 and 5 year compounding. This softer recent momentum sits alongside commentary that links the company’s shift toward data centers and digital services with a reassessment of both its growth potential and risk profile.

If you are weighing Iron Mountain’s move deeper into data infrastructure, it could be a good time to broaden your watchlist with high growth tech and AI stocks that are shaping similar themes.

So with Iron Mountain trading at $83.24, sitting on a recent 90 day share price decline and a value score of 5 alongside a quoted intrinsic discount of 60%, are you looking at a genuine opportunity, or a market that is already pricing in its future growth?

Most Popular Narrative Narrative: 28.7% Undervalued

With Iron Mountain last closing at $83.24 against a narrative fair value of about $116.73, the current setup hinges on how credible its data center and digital growth story looks.

The company's strong pre-leased data center development pipeline in prime locations (Northern Virginia, Richmond, Amsterdam, etc.) and operational leverage are expected to yield accelerating revenue and margin gains as capacity comes online, with mid-to-high double-digit growth outlook supporting long-term earnings and cash flow.

Read the complete narrative.

Want to see what is baked into that gap between today’s price and the fair value? Revenue mix shifts, margin reset and an earnings profile that looks very different to the past all sit at the center of this narrative, backed by a specific growth path and a rich future P/E assumption. Curious which numbers need to land for that view to hold?

Result: Fair Value of $116.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear pressure points, including execution risk in scaling data centers and digital solutions, and the impact of elevated leverage on future refinancing costs.

Find out about the key risks to this Iron Mountain narrative.

Build Your Own Iron Mountain Narrative

If that view does not quite fit how you see Iron Mountain, you can pull up the same numbers, test your own assumptions and build a tailored thesis in just a few minutes, then Do it your way.

A great starting point for your Iron Mountain research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Iron Mountain is on your radar, do not stop there. Broaden your opportunity set with other focused ideas that match the way you like to invest.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.