Iron Mountain Incorporated Stock Beneish M Score

IRM Stock  USD 80.14  2.19  2.81%   
This module uses fundamental data of Iron Mountain to approximate the value of its Beneish M Score. Iron Mountain M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Iron Mountain Piotroski F Score and Iron Mountain Altman Z Score analysis.
  
At this time, Iron Mountain's Cash Flow To Debt Ratio is very stable compared to the past year. At this time, Iron Mountain's Pretax Profit Margin is very stable compared to the past year. As of the 28th of March 2024, Inventory Turnover is likely to grow to 176.42, while Operating Cycle is likely to drop 59.01.
At this time, it appears that Iron Mountain rporated is an unlikely manipulator. The earnings manipulation may begin if Iron Mountain's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Iron Mountain executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Iron Mountain's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.33
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.97

Focus
Asset Quality

1.09

Focus
Expense Coverage

1.35

Focus
Gross Margin Strengs

0.75

Focus
Accruals Factor

1.35

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.53

Focus
Financial Leverage Condition

1.0

Focus

Iron Mountain Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Iron Mountain's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.3 B1.3 B
Sufficiently Up
Slightly volatile
Total Revenue2.9 B5.5 B
Way Down
Slightly volatile
Total Assets18.3 B17.5 B
Sufficiently Up
Slightly volatile
Total Current Assets932.3 M1.7 B
Way Down
Slightly volatile
Non Current Assets Total16.5 B15.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment9.3 B8.9 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization832.7 M793 M
Sufficiently Up
Slightly volatile
Selling General Administrative626.6 M873.2 M
Way Down
Slightly volatile
Total Current Liabilities2.3 B2.2 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total15.6 B14.8 B
Sufficiently Up
Slightly volatile
Net Debt15.3 B14.6 B
Sufficiently Up
Slightly volatile
Short Term Debt433.1 M412.5 M
Sufficiently Up
Slightly volatile
Long Term Debt12.4 B11.8 B
Sufficiently Up
Slightly volatile
Operating Income511.3 M921.8 M
Way Down
Slightly volatile
Total Cash From Operating Activities1.2 B1.1 B
Sufficiently Up
Slightly volatile
Short Term Investments26.7 M13.6 M
Way Up
Slightly volatile
Long Term Investments43 M40.9 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.430.5698
Way Down
Very volatile

Iron Mountain rporated Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Iron Mountain's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Iron Mountain in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Iron Mountain's degree of accounting gimmicks and manipulations.

About Iron Mountain Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

2.38 Billion

At this time, Iron Mountain's Other Operating Expenses is very stable compared to the past year.

Iron Mountain Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Iron Mountain. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables850.7M859.3M961.4M1.2B1.3B1.3B
Total Revenue4.3B4.1B4.5B5.1B5.5B2.9B
Total Assets13.8B14.1B14.5B16.1B17.5B18.3B
Total Current Assets1.2B1.3B1.4B1.5B1.7B932.3M
Net Debt10.2B10.5B11.2B13.1B14.6B15.3B
Short Term Debt389.0M193.8M309.4M376.3M412.5M433.1M
Long Term Debt8.3B8.5B8.7B10.2B11.8B12.4B
Operating Income781.3M645.1M854.2M1.0B921.8M511.3M
Investments(19.2M)(18.3M)(78.6M)(73.2M)(1.4B)(1.3B)

Iron Mountain ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Iron Mountain's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Iron Mountain's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Iron Mountain Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Iron Mountain Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Iron Mountain using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Iron Mountain Incorporated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Iron Mountain Incorporated , founded in 1951, is the global leader for storage and information management services. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working. Iron Mountain operates under REITSpecialty classification in the United States and is traded on New York Stock Exchange. It employs 25000 people.

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When determining whether Iron Mountain rporated is a strong investment it is important to analyze Iron Mountain's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Iron Mountain's future performance. For an informed investment choice regarding Iron Stock, refer to the following important reports:
Check out Iron Mountain Piotroski F Score and Iron Mountain Altman Z Score analysis.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Iron Mountain's price analysis, check to measure Iron Mountain's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Iron Mountain is operating at the current time. Most of Iron Mountain's value examination focuses on studying past and present price action to predict the probability of Iron Mountain's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Iron Mountain's price. Additionally, you may evaluate how the addition of Iron Mountain to your portfolios can decrease your overall portfolio volatility.
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Is Iron Mountain's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Iron Mountain. If investors know Iron will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Iron Mountain listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.76)
Dividend Share
2.506
Earnings Share
0.63
Revenue Per Share
18.772
Quarterly Revenue Growth
0.11
The market value of Iron Mountain rporated is measured differently than its book value, which is the value of Iron that is recorded on the company's balance sheet. Investors also form their own opinion of Iron Mountain's value that differs from its market value or its book value, called intrinsic value, which is Iron Mountain's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Iron Mountain's market value can be influenced by many factors that don't directly affect Iron Mountain's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Iron Mountain's value and its price as these two are different measures arrived at by different means. Investors typically determine if Iron Mountain is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Iron Mountain's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.