Short Idea: Iron Mountain
Price: $12.50
Add to cartWe've done some work on Iron Mountain (IRM - $25) after some forensic work from our friends at New Constructs tipped us off to dig into the name.
We, along with many investors, thought that Iron Mountain was a pretty solid company with high recurring revenues and profits.
Turns out we found an overvalued business with fairly poor fundamentals.
A charitable view might put IRM worth at $7B but long-term debt of $3.2B puts a damper on things. We'd suggest the shares are worth at most $19 using our long-term valuation methodology. A less friendly analysis might highlight their additional $3B of long-term lease obligations and the possibility that their revenue growth and margins could deteriorate further.