Should You Hold Iron Mountain (IRM) Stock In Your Portfolio?
Zacks Investment Research | Sep 08, 2019 09:19PM ET
Iron Mountain Incorporated (NYSE:IRM) enjoys a steady stream of recurring revenues from its core storage and record management businesses. However, softer recycled paper prices will likely keep the company under pressure this year.
Despite the ongoing digitization trends, document storage and management remains a very tenable business. In fact, Iron Mountain has enjoyed a consistent box retention rate of 98%, with more than 50% of its boxes staying in the facilities for 15 years on average. This durable business also drives significant cross-selling synergies across different segments and delivers robust cash-flow growth.
Additionally, amid volume declines in North America, Iron Mountain is enhancing its storage segment performance by focusing on expansion in international markets, specifically, emerging markets. In fact, Iron Mountain recently expanded its footprint in Colombia with the acquisition of Suppla's Business Process Outsourcing unit. The move comes as part of the company’s move to boost its presence in Latin America, a region that offers substantial scope for the information management business’ growth. (Read more: Original post
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