IRON MOUNTAIN INC

IRM

Forward P/E: 41.87×
Mkt cap: 34.0 B USD
EV: 50.3 B USD
Sector: Real Estate
Coverage: 2008–2025
Currency: USD
Next event: Feb 12, 2027

JP Valuation

JP Score

16,2

Out of profile · window 5 years

JP entry price

OUT OF PROFILE

No target price is issued: the company falls outside the profile this method looks for.

Financial comments7

Recurring adjustments: normalized earnings sit well above reported.
Leverage rising for 3 consecutive years.
Interest coverage below 4×.
The share count grows: net dilution.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.
ROIC below the required return: growth destroys value.
Impairment of fcf: 75 % of the window, weighted by recency → 9.0 points. It is the only place in the model where a bad year subtracts.

Calculation comments1

No consensus candidate passed the plausibility contract: nothing is rewritten and the path falls to the next rung of the cascade.

Quality factors

Each factor scores 0–100 on its own scale; the score is their weighted average.

Score	Weight → points
Growth consistency55 Earnings · fit to the log-linear line · σ_resid = 0.10722 %0 Earnings · hit rate · 30 %16 %0 Earnings · volatility · σ = 0.16511 %47 Revenue · fit to the log-linear line · σ_resid = 0.01114 %97 Revenue · hit rate · 100 %11 %94 Revenue · volatility · σ = 0.0217 %97 Forward · trajectory coherence · consensus — vs. trend -10.4 %20 %93	·20 → 10,91
Growth pace45 Realized · -9.0 %50 %24 Expected · —50 %66	·20 → 9,03
No recent stagnation64 Realized slowdown · 1.09×50 %34 Expected slowdown · n/a50 %95 3-year earnings CAGR at or below zero (-9.9 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe. Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.	·15 → 9,66
FCF quality0 FCF / net income conversion · -2.11×100 %0 Window chosen: last 5 years (the best of those evaluated). Alternative · last 3 years: conversion -3.66× → 0 points. Positive FCF in 2 of the 5 years in the window.	·15 → 0,00
Debt0 Net debt / EBITDA · 7.33×100 %0 Net debt / EBITDA has risen 3 years in a row: −8 points. Interest coverage (EBIT / \|interest\|) = 1.2×. Leverage rising for 3 consecutive years. Interest coverage below 4×.	·15 → 0,00
Return on invested capital (ROIC)3 Level (recency-weighted mean) · 2.3 %50 %0 Spread over the required return · −0.1 pp over the 10 % required30 %0 Trend · −4.1 pp over 5 years20 %16 Average ROIC (2.3 %) below the required return (10 %): growth destroys value. ROIC below the required return: growth destroys value.	·15 → 0,47
Weighted base	·100 → 30,06

Modifiers and penalties

The factors build the score; the modifiers correct it, within +23 / −28. Same 0–100 bar, 100 is always good.

Score	Range	Points
Gross margin trend · −1.8 pp accumulated over 4 years32	±8	-2,9
Altman Z'' · Z'' = 2.5395	0/−15	-0,7
Shareholder returns · dilutes 0.5 % a year0 Effective buyback (net share count) · 0.5 % of dilution0 Dividend yield (last DPS / price today) · 2.8 % · does not count: the active branch is dilution—	+15/−5	-1,2
Impairment · 75 % · worst magnitude: fcf25 Earnings · 4.6 %95 Free cash flow · 74.9 %25 EBITDA · 0.0 %100	0/−12	-9,0
30,1 − 2,9 − 0,7 − 1,2 − 9,0 =16,2

Calculated on Sep 5, 2026

Score

Weight → points

Growth consistency55

Earnings · fit to the log-linear line · σ_resid = 0.10722 %0
Earnings · hit rate · 30 %16 %0
Earnings · volatility · σ = 0.16511 %47
Revenue · fit to the log-linear line · σ_resid = 0.01114 %97
Revenue · hit rate · 100 %11 %94
Revenue · volatility · σ = 0.0217 %97
Forward · trajectory coherence · consensus — vs. trend -10.4 %20 %93

·20 → 10,91

Growth pace45

Realized · -9.0 %50 %24
Expected · —50 %66

·20 → 9,03

No recent stagnation64

Realized slowdown · 1.09×50 %34
Expected slowdown · n/a50 %95
3-year earnings CAGR at or below zero (-9.9 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.

·15 → 9,66

FCF quality0

FCF / net income conversion · -2.11×100 %0
Window chosen: last 5 years (the best of those evaluated).
Alternative · last 3 years: conversion -3.66× → 0 points.
Positive FCF in 2 of the 5 years in the window.

·15 → 0,00

Debt0

Net debt / EBITDA · 7.33×100 %0
Net debt / EBITDA has risen 3 years in a row: −8 points.
Interest coverage (EBIT / |interest|) = 1.2×.
Leverage rising for 3 consecutive years.
Interest coverage below 4×.

·15 → 0,00

Return on invested capital (ROIC)3

Level (recency-weighted mean) · 2.3 %50 %0
Spread over the required return · −0.1 pp over the 10 % required30 %0
Trend · −4.1 pp over 5 years20 %16
Average ROIC (2.3 %) below the required return (10 %): growth destroys value.
ROIC below the required return: growth destroys value.

·15 → 0,47

Weighted base

·100 → 30,06

Score

Range

Points

Gross margin trend · −1.8 pp accumulated over 4 years32

±8

-2,9

Altman Z'' · Z'' = 2.5395

0/−15

-0,7

Shareholder returns · dilutes 0.5 % a year0

Effective buyback (net share count) · 0.5 % of dilution0
Dividend yield (last DPS / price today) · 2.8 % · does not count: the active branch is dilution—

+15/−5

-1,2

Impairment · 75 % · worst magnitude: fcf25

Earnings · 4.6 %95
Free cash flow · 74.9 %25
EBITDA · 0.0 %100

0/−12

-9,0

30,1 − 2,9 − 0,7 − 1,2 − 9,0 =16,2