Iron Mountain Inc. (NYSE:IRM), in my opinion, is a rather controversial company. Despite many well-written articles on Seeking Alpha, there are still a lot of questions as to why it's trading at a
Iron Mountain Is Still Too Expensive Despite Good Dividends
Summary
- Despite many well-written articles on Seeking Alpha, there are still a lot of questions as to why IRM is trading at a P/FFO multiple of >16.
- IRM's "Data Center" segment is growing in line with the market but lags behind the main market competitors.
- To justify its low AFFO growth, the company's P/AFFO should be 45.82% lower than the actual current one, according to my comparative analysis.
- The high dividend yield of 5.78% is the only thing that doesn't make my article bearish. But due to the high payout ratio, one shouldn't expect a significant increase in dividends in the future.
- If you're a value-oriented IRM shareholder, I recommend holding. But if you're seeking a data center stock exposure, there are options on the market with much higher potential.
Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.
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