We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Iron Mountain (IRM) Stock Now
Read MoreHide Full Article
Iron Mountain Incorporated (IRM - Free Report) is strengthening its data-center platform through expansion projects and development efforts. However, the pandemic has caused a slowdown in service activity levels, thereby, affecting the company’s organic service business growth.
In February, the company entered a joint venture with Web Werks, which once closed, will expand Iron Mountain’s reach to India, particularly in Mumbai, Pune and Delhi NCR. Given anticipated robust growth in the India data-center market, the move is a strategic fit.
Further, amid strong demand for connectivity, interconnection and colocation space, which has been driving leasing activity, management’s leasing outlook for 2021 is pegged at 25-30 megawatts, indicating solid annual booking growth.
Moreover, the company is focusing on capital recycling by monetizing non-core assets and entering joint ventures and sale-leaseback transactions, using sale proceeds to fund the development pipeline.
Its aggressive expansion strategy is backed by a solid liquidity position that stood at $2 billion at 2020 end. Furthermore, with a weighted-average debt maturity of 7.6 years, it has ample financial flexibility to meet its near-term debt obligations and other capital commitments that are manageable.
Its core storage and record management businesses also remain resilient, with the company deriving the majority of its revenues from fixed periodic (usually earned on a monthly basis) storage rental fees charged to customers based on the volume of their records stored. Given Iron Mountain’s initiatives to expand its core storage business, the company is likely to see robust organic storage rental revenue growth in the near term.
However, declining paper needs at the enterprise level along with the shifts in data storage through non-paper-based technologies are resulting in physical storage volume erosion and low demand for the handling of records. This is affecting service activity levels and records management volumes.
Moreover, moderation in economic activity amid the pandemic is likely to impact physical storage business volumes. In addition, the digitization of records might shift its revenue mix from the more-predictable storage revenues to service revenues that are more volatile.
Also, continued weakness in recycled paper prices is likely to hinder organic service revenue growth and EBITDA. Given Iron Mountain’s international footprint, the company often faces unfavorable foreign-currency movements, which affects top-line growth.
Shares of this Zacks Rank #3 (Hold) company have jumped 49.7% over the past year compared with the industry’s growth of 39.6%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (FFO) per share estimates for the current year have moved up 3.8% to $1.61 in the past week. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 1.7% to $5.89 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% at $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Shutterstock
Here's Why You Should Retain Iron Mountain (IRM) Stock Now
Iron Mountain Incorporated (IRM - Free Report) is strengthening its data-center platform through expansion projects and development efforts. However, the pandemic has caused a slowdown in service activity levels, thereby, affecting the company’s organic service business growth.
In February, the company entered a joint venture with Web Werks, which once closed, will expand Iron Mountain’s reach to India, particularly in Mumbai, Pune and Delhi NCR. Given anticipated robust growth in the India data-center market, the move is a strategic fit.
Further, amid strong demand for connectivity, interconnection and colocation space, which has been driving leasing activity, management’s leasing outlook for 2021 is pegged at 25-30 megawatts, indicating solid annual booking growth.
Moreover, the company is focusing on capital recycling by monetizing non-core assets and entering joint ventures and sale-leaseback transactions, using sale proceeds to fund the development pipeline.
Its aggressive expansion strategy is backed by a solid liquidity position that stood at $2 billion at 2020 end. Furthermore, with a weighted-average debt maturity of 7.6 years, it has ample financial flexibility to meet its near-term debt obligations and other capital commitments that are manageable.
Its core storage and record management businesses also remain resilient, with the company deriving the majority of its revenues from fixed periodic (usually earned on a monthly basis) storage rental fees charged to customers based on the volume of their records stored. Given Iron Mountain’s initiatives to expand its core storage business, the company is likely to see robust organic storage rental revenue growth in the near term.
However, declining paper needs at the enterprise level along with the shifts in data storage through non-paper-based technologies are resulting in physical storage volume erosion and low demand for the handling of records. This is affecting service activity levels and records management volumes.
Moreover, moderation in economic activity amid the pandemic is likely to impact physical storage business volumes. In addition, the digitization of records might shift its revenue mix from the more-predictable storage revenues to service revenues that are more volatile.
Also, continued weakness in recycled paper prices is likely to hinder organic service revenue growth and EBITDA. Given Iron Mountain’s international footprint, the company often faces unfavorable foreign-currency movements, which affects top-line growth.
Shares of this Zacks Rank #3 (Hold) company have jumped 49.7% over the past year compared with the industry’s growth of 39.6%.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (FFO) per share estimates for the current year have moved up 3.8% to $1.61 in the past week. The company sports a Zacks Rank of 1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Extra Space Storage Inc.’s (EXR - Free Report) Zacks Consensus Estimate for 2021 FFO per share has moved up 1.7% to $5.89 in the past month. The company currently carries a Zacks Rank of 2 (Buy).
Global Net Lease, Inc. (GNL - Free Report) has a Zacks Rank of 2 at present. The Zacks Consensus Estimate for 2021 FFO per share has been revised 4% at $2.10 in a month’s time.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>