Investment Thesis
Iron Mountain exhibits deteriorating financial health despite 12.2% revenue growth, with net income declining 5.0% YoY and EPS down 19.7%. Critical red flags include negative stockholders' equity of -$1.2B, dangerously low interest coverage of 1.5x, negative free cash flow of -$179.5M, and a working capital deficit (current ratio 0.77x), indicating the company cannot sustainably service its $17.1B debt burden.
Strengths
- Strong revenue growth of 12.2% YoY demonstrates demand for core business
- Positive operating cash flow of $338.6M shows underlying operational cash generation
- Operating margin of 20.4% reflects operational efficiency in core business activities
Risks
- Negative stockholders' equity of -$1.2B indicates liabilities exceed total assets and insolvency risk
- Interest coverage ratio of 1.5x is dangerously low with minimal debt service margin; vulnerable to any operational downturn
- Negative free cash flow of -$179.5M despite positive operations indicates capex requirements ($518.0M) exceed cash generation, forcing debt reliance
- Working capital deficit (current ratio 0.77x) creates near-term liquidity pressure
- Declining net income (-5.0% YoY) and EPS (-19.7% YoY) despite revenue growth indicates deteriorating profitability
Key Metrics to Watch
- Interest coverage ratio trajectory and debt refinancing success
- Free cash flow sustainability and path to positive FCF
- Stockholders' equity recovery and balance sheet deleveraging
- Operating cash flow stability amid any revenue slowdown
Financial Metrics
Revenue
1.9B
Net Income
143.7M
EPS (Diluted)
$0.48
Free Cash Flow
-179.5M
Total Assets
21.5B
Cash
250.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
20.4%
Net Margin
7.4%
ROE
N/A
ROA
0.7%
FCF Margin
-9.3%
Balance Sheet & Liquidity
Current Ratio
0.77x
Quick Ratio
0.76x
Debt/Equity
N/A
Debt/Assets
0.0%
Interest Coverage
1.52x
Long-term Debt
17.1B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T17:59:26.957200 |
Data as of: 2026-03-31 |
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