Is Iron Mountain (IRM) Undervalued After Its Recent Share Price Pullback?
Iron Mountain (IRM) has quietly slipped over the past month, with the stock down roughly 20% year to date and almost 30% over the past year, despite solid multi year total returns.
See our latest analysis for Iron Mountain.
With the share price now around $82.77 after a sharp 1 month share price return of minus 19.6%, the pullback contrasts with a still strong 5 year total shareholder return above 200%. This suggests momentum has clearly cooled, even if the long term story remains intact.
If this kind of reset has you rethinking where to allocate fresh capital, it could be a good moment to discover fast growing stocks with high insider ownership.
Given that backdrop, the key debate now is whether Iron Mountain’s recent pullback and sizable discount to analyst targets signal a mispricing of its growth story, or if the market is already correctly discounting its future expansion.
Most Popular Narrative Narrative: 29.1% Undervalued
Against a last close of $82.77, the most widely followed narrative pegs Iron Mountain’s fair value closer to $116.73, setting up a sharp valuation gap.
The analysts have a consensus price target of $114.5 for Iron Mountain based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $140.0, and the most bearish reporting a price target of just $44.0.
Curious how steady revenue growth, rising margins and a premium future earnings multiple can all coexist in one story? Unpack the projections behind that confidence.
Result: Fair Value of $116.73 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained digital disruption or a misstep in capital intensive data center expansion could pressure Iron Mountain’s margins and ultimately challenge today’s bullish assumptions.
Find out about the key risks to this Iron Mountain narrative.
Build Your Own Iron Mountain Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes. 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.
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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.
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