Important note
This AI stock analysis for Iron Mountain is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Iron Mountain - AI Stock Analysis
Analysis generated October 9, 2024
Iron Mountain Incorporated is an American enterprise information management services company founded in 1951 and based in Boston, Massachusetts. The company provides records management, information destruction, and data backup services to multiple organizations. Over the years, Iron Mountain has diversified its offerings, expanding from physical storage solutions to digital data management. This breadth ensures steady relevance in both traditional and modern business landscapes.
Fundamental Analysis
Revenue: For the last quarter, Iron Mountain reported revenue of $1.36 billion. This signifies a 2.12% growth compared to the previous quarter, and a more substantial 13.20% increase year-over-year. Revenue growth year-over-year indicates the company's capability to generate more income and maintain a positive growth trajectory, which is generally favorable.
Net Income: The company's net income for the last quarter was $36 million. This represents a 51.68% decline compared to the quarter before, which might be a red flag suggesting potential inefficiencies or higher expenses. However, when compared to the same quarter last year, the net income increased by a staggering 31,288.60%. This could be driven by various factors such as reduced write-offs or other one-time financial anomalies. Nevertheless, the enormous year-over-year growth provides optimism.
EBITDA: Iron Mountain's EBITDA for the last quarter stands at $242 million. With an increase of 126.87% from the previous quarter, and a year-over-year spike of 1,176.52%, these figures demonstrate the company's enhanced operational efficiency and profitability, excluding expenses such as interest, taxes, depreciation, and amortization, which are substantial positives.
P/E Ratio: The company's current P/E ratio is 152.36. A high P/E ratio often indicates that the stock may be overvalued or that investors are expecting high growth rates in the future. While this ratio could be a bearish outlook, it is crucial to consider it alongside other metrics.
Insider Transactions: Recent insider selling could be a bearish signal, suggesting those with the most knowledge about the company might anticipate a future downturn or are capitalizing on the stock price increase.
Technical Analysis
Stock Price: Iron Mountain's current stock price is $118.84. With an impressive 8.30% increase in the past month and a yearly jump of 105.43%, the trend appears bullish. Such a substantial rise indicates strong market confidence and investor interest.
SMA10: The stock's current SMA10 is $118.42, slightly higher than the previous SMA10 of $118.21. This consistent uptick suggests positive price movement and a potential for continued upward trends.
RSI: The Relative Strength Index (RSI) is at 49.8, placing the stock in neutral territory. This means the market hasn't moved Iron Mountain's stock into overbought or oversold positions, reflecting balanced market sentiment at the moment.
Alternative Data Analysis
Job Postings: Iron Mountain has 347 open positions, which is a 51% decrease in recent months. Such reduction could imply efforts to reduce costs or improve margins. However, it might also signify a slowdown in growth or cutting back operations, which is concerning.
Customer Acquisition: The company has approximately 480,000 website visitors with stable figures over recent months. While stability is good, a lack of growth in visitors might signal stagnation in attracting new customers or market penetration.
Customer Engagement: Iron Mountain's Twitter page has 9,400 followers, a figure that has remained constant. Consistent follower numbers indicate steady engagement but could also point to missed opportunities for growth in customer or investor engagement.
AI Score: AltIndex's AI score for Iron Mountain is 58, categorizing the stock as a hold. This score integrates various aspects from fundamental, technical, and alternative data, giving a well-rounded view of the company's performance and market position.
Conclusion and Recommendation
Iron Mountain shows a mixed bag of signals across different analytical perspectives. The company has reported robust revenue growth and remarkable year-over-year improvements in net income and EBITDA, yet faces challenges reflected in insider selling and job cuts. The technical analysis reveals a bullish short-term and long-term trend, indicating positive investor sentiment. However, neutral RSI places it in a wait-and-see category. The alternative data analysis with stagnant job postings and web traffic raises caution. Combining these findings with an AI score of 58, Iron Mountain is recommended as a "Hold." Investors should keep a close watch on upcoming financial reports and market trends to make more informed decisions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
