NEW YORK (TheStreet) -- Shares of Iron Mountain Inc (IRM) are soaring this afternoon, up 5.71% to $33.72, as the data management company plans to acquire Recall Holdings Ltd (RCLHF) for more than $2 billion, Bloomberg reports.
Recall is a provider of information management solutions and trades on the Australian Securities Exchange, but does business in the U.S.
Separately, TheStreet Ratings team rates IRON MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate IRON MOUNTAIN INC (IRM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IRM's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 907.14% and other important driving factors, this stock has surged by 25.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, IRON MOUNTAIN INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- 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 930.3% when compared to the same quarter one year prior, rising from $26.37 million to $271.64 million.
- Net operating cash flow has increased to $139.96 million or 30.44% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.98%.
- You can view the full analysis from the report here: IRM Ratings Report