Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Iron Mountain (NYSE: IRM) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 85.4% when compared to the same quarter one year prior, rising from $25.49 million to $47.27 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for IRON MOUNTAIN INC is rather high; currently it is at 56.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 6.15% is above that of the industry average.
- Net operating cash flow has increased to $172.96 million or 31.03% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.04%.
- IRON MOUNTAIN INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IRON MOUNTAIN INC reported lower earnings of $0.51 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($1.09 versus $0.51).