Iron Mountain (NYSE: IRM) stock price has been a big winner in the past decade. The shares jumped to an all-time high of $64.40 in September, outperforming other REIT stocks. Its total return in the past decade stood at 386.7%, higher than that of the S&P 500 index.
IRM business is doing wellIron Mountain is a company that operates in three key segments. First, it has the Global Records and Information Management (RIM), which offers solutions like records management, data management, secure shredding, and consumer storage.
Second, it operates data centers, which are used by companies like Amazon, Google, IBM, and Microsoft. The last segment is known as Corporates & Other.. In 2022, the RIM segment brought in $4.2 billion in revenue and $1.88 billion in adjusted EBITDA.
Its data center business brought in over $410 million and adjusted EBITDA of $175 million. Corporate and Other brought in over $407 million and had an EBITDA loss of $236 million.
The most recent financial results showed that Iron Mountain was doing well. Its total revenue rose by 5.30% to $1.36 billion as the organic rental growth rose by 11%. Total service revenue was $527 million while its adjusted EBITDA was $476 million.
Iron Mountain stock price has jumped after the company unfroze its dividend payments. It now has a dividend yield of 4.06% and a forward yield of 4.21%. This implies that investors expect it to continue growing its payouts in the coming months. It has a better yield than companies like Equinix, Digital Realty, and DigitalBridge.
Iron Mountain shares have also risen because of the ongoing investments in artificial intelligence. Analysts believe that the company will benefit as demand for data center continues rising. I am a bit skeptical about this since I believe that growth in this segment will be a bit slow going forward.
Iron Mountain stock price forecast
Turning to the daily chart, we see that the Iron Mountain share price has been in a strong bullish trend in the past few years. It has formed an ascending channel, pointing to more growth in the coming years.
Iron Mountain stock has risen above the 50-day and 100-day moving averages, which is a positive sign. The current price is an important one since it was the highest swing in July this year.
Therefore, my outlook for the stock is neutral with a bullish bias. I suggest that potential investors be patient and see whether it will retest its all-time high. A break above this price and the ascending channel will mean that buyers have prevailed.
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