5 Hold-Rated Dividend Stocks Taking The Lead: OFC, IAG, KMI, IRM, ECA
Iron Mountain (NYSE: IRM) shares currently have a dividend yield of 4.10%. Iron Mountain Incorporated, together with its subsidiaries, provides information management services primarily in North America, Europe, Latin America, and the Asia Pacific. The company has a P/E ratio of 22.32. The average volume for Iron Mountain has been 1,830,300 shares per day over the past 30 days. Iron Mountain has a market cap of $5.1 billion and is part of the computer software & services industry. Shares are down 15.1% year to date as of the close of trading on Thursday. TheStreet Ratings rates Iron Mountain as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- IRM's revenue growth has slightly outpaced the industry average of 7.4%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for IRON MOUNTAIN INC is rather high; currently it is at 57.46%. Regardless of IRM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.51% trails the industry average.
- IRON MOUNTAIN INC's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IRON MOUNTAIN INC reported lower earnings of $1.05 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $1.05).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Services & Supplies industry. The net income has significantly decreased by 30.2% when compared to the same quarter one year ago, falling from $38.06 million to $26.56 million.
- The debt-to-equity ratio is very high at 3.65 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, IRM maintains a poor quick ratio of 0.81, which illustrates the inability to avoid short-term cash problems.
- You can view the full Iron Mountain Ratings Report.
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