Company Overview and Financial Profile Iron Mountain Inc. provides information management and storage services including records management, data centers and secure storage, and its financial profile shows strong cash-generation capability paired with volatile earnings and a very elevated market multiple. Profitability and Cash Conversion The company displays structural profitability and cash conv
Iron Mountain Inc. provides information management and storage services including records management, data centers and secure storage, and its financial profile shows strong cash-generation capability paired with volatile earnings and a very elevated market multiple.
The company displays structural profitability and cash conversion: gross margin sits at roughly 56.2% indicating high product/service-level margin Profit Margin Trends, and trailing‑twelve‑month operating cash flow was $1.20B versus TTM net income of $183.7M as of 2024‑12‑31, so cash generation materially exceeded reported earnings by about $1.02B Earnings Quality Analysis.
Revenue per share has also shown multi‑year expansion with a 5‑year RPS CAGR of about 5.05% and a historical RPS level near $12.91 in the available series EPS Diluted & Revenue per Share.
Notable weaknesses accompany those strengths. Reported profitability at the bottom line has been pressured: trailing net income fell from $562.1M in 2022 to $122.9M (TTM ending 2025‑03‑31) and diluted EPS has declined from $1.89 at 2022‑12‑31 to $0.41 by 2025‑03‑31, with a one‑year EPS change of −1.92% in the latest period Revenue & Net Income EPS Diluted & Revenue per Share.
Liquidity and returns metrics also look weak: current ratio is below 1.0 at 0.902, and ROE has dropped to about 0.7% as of 2025‑03‑31—while the market has priced earnings at a very high multiple, with a trailing PE of approximately 208.5x as of 2025‑03 Return on Equity (ROE) Price-to‑Earnings (PE) Ratio Trend.
Key fundamentals to watch going forward are operating cash flow (TTM $1.20B) versus net income ($122.9M) and the trajectory of diluted EPS ($0.41), the trend in revenue per share growth (5‑yr CAGR ~5.05%) and liquidity measures such as the current ratio (0.902). Also monitor capital allocation and cash flows—investing outflows have been sizeable (−$1.44B) while financing inflows rose to $1.27B TTM most recently—to assess sustainability of cash generation and leverage dynamics Strategic Capital Allocation Earnings Quality Analysis.
The foundation of business quality and long-term value creation
IRON MOUNTAIN INC's quarterly revenue figures show variation over the period shown, with a downshift in the most recent reported revenue. The latest revenue entry is $805.2M for the quarter ending 2025-06-30, down from $1.48B reported for the quarter ending 2024-03-31. Historical revenue entries include higher peaks (e.g., $2.12B on 2017-12-31) and a notable negative reporting entry of -$434.4M on 2016-12-31.
Net income has been uneven across quarters. After a peak of $369.2M on 2022-12-31, quarterly net income mostly ranged between roughly \$70M and \$110M through 2023–2024, dipped to \$16.2M on 2025-03-31, and rose to \$149.0M in the most recent quarter ending 2026-03-31.
Most recent quarter: Revenue of $805.2M and net income of $149.0M.
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2017 to Dec 2017
Analyzing long-term margin stability and competitive positioning
IRON MOUNTAIN INC's gross margin shows a long history of mid-to-high 50% levels across 2012–2014, a pronounced deterioration through 2015–early 2017 (mid-40s down to the mid-20s), and a marked rebound to 56.2% in the most recent 2017-12-31 observation. Earlier in the series there are extreme negative gross margins in 2010–2011 (−264.3% at 2010-12-31, −57.2% at 2011-03-31, −61.0% at 2011-06-30) before recovery to positive, stable gross margins in later years.
Net profit margin for IRON MOUNTAIN INC is more variable and sits noticeably lower than gross margin in the available series: after double-digit net margin in 2011 (13.3%) and 2014 (10.5%), the most recent net profit margin observation is 4.2% as of 2015-12-31. The latest observed gross margin was 56.2% (period end 2017-12-31) and the latest observed net profit margin was 4.2% (period end 2015-12-31).
Understanding Profit Margins
Between Jan 2017 and Dec 2017, Iron Mountain Inc converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
IRON MOUNTAIN INC's trailing twelve-month net income has declined in recent quarters after a multi-year peak. Net income fell from $562.1M in the 2022 year to $187.3M in 2023 and $183.7M at the 2024-12-31 TTM, then declined further to $122.9M in the TTM ending 2025-03-31, showing a clear downward inflection beginning after the 2022 peak.
Operating cash flow (TTM) and net income diverge in the most recent comparable data: as of the 2024-12-31 TTM, operating cash flow was $1.20B while net income for that same TTM was $183.7M, indicating operating cash generation materially exceeded reported earnings at that date. The most recent Net Income (TTM) was $122.9M (period ending 2025-03-31). The most recent Operating Cash Flow (TTM) was $1.20B (period ending 2024-12-31).
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
IRON MOUNTAIN INC's trailing twelve-month ROE shows pronounced volatility with a sharp recent decline. After a large spike to 88.5% at the 2023-12-31 quarter, the metric fell to 0.7% by 2025-03-31, reversing a prior modest level of 3.5% at 2022-12-31. The most recent quarters therefore show a material drop in ROE from the 2023 peak to near zero in the latest reporting period.
Looking further back, ROE has alternated between low single-digit readings (e.g., 1.5% in 2013, 3.7% in 2018, 3.5% in 2022) and intermittent higher readings (38.4% in 2014, 24.6% in 2015, 18.3% in 2019). The most recent reported ROE was 0.7% as of 2025-03-31.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
IRON MOUNTAIN INC's trailing twelve-month cash flows show operating cash as a positive contributor and investing as a consistent outflow. The most recent reported operating cash flow TTM is $1.20B (period ending 2024-12-31). Investing cash flow has been negative across the reported history and reached a larger outflow of -$1.44B in the TTM period ending 2023-12-31.
Financing cash flow shows a clear inflection in the recent data: after a modest TTM $17.6M (period ending 2023-03-31) and earlier variability, financing inflows rose to $876.7M in the TTM period ending 2024-12-31 and increased further to $1.27B in the TTM period ending 2025-12-31. The most recent Operating Cash Flow (TTM) was $1.20B (2024-12-31). The most recent Investing Cash Flow (TTM) was -$1.44B (2023-12-31). The most recent Financing Cash Flow (TTM) was $1.27B (2025-12-31).
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
IRON MOUNTAIN INC’s trailing twelve-month Price-to-Earnings ratio has increased sharply in the most recent quarters. After 26.3x at 2022-12, the PE rose to 109.1x at 2023-12, then to 170.4x at 2024-12 and 208.5x at 2025-03, showing a marked upward trajectory across 2023–2025.
The longer history shows prior peaks (82.9x in 2013, 64.2x in 2015) and troughs in the low‑20s (21.3x in 2020-03, 21.4x in 2011), but the most pronounced movement in the dataset is the recent run-up. The most recent Price-to-Earnings (PE) ratio was 208.5x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.