Summary
Opened a position in Iron Mountain.
IRM has a solid long-term growth story, strong AFFO growth projections, a best-in-class 6.8% yield, adequate coverage, and low cost of capital.
Please review following article regarding the bull case for IRM.
This idea was discussed in more depth with members of my private investing community, Discovered Dividends.
What happened?
I have had Iron Mountain (IRM), a storage and information management services company, on my watch list for quite some time. Iron Mountain was up 1.6% in the pre-market before tanking on 2nd quarter results that beat EPS and revenue estimates with a 12% Y/Y revenue growth. Fiscal year 2018 guidance has revenue up 7% to 9% to approximately $4.11-4.19 billion.
Key Metrics:
- Storage revenue, $665 million (+11% Y/Y)
- Service revenue, $405 million (+13%)
- Gross profit margin, 57.6%
- Income from continuing operations, $94 million (+13%)
- Adjusted EBITDA, $369 million (+16%)
Nevertheless, the stock has sold off hard today.
