Iron Mountain: Discounted Valuations, Richer Yields, & Resilient AI/Legacy Business Monetization
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Juxtaposed Ideas15K FollowersFollow5ShareSavePlay(14min)Comments(2)SummaryIRM is an even better Buy after the steep correction, thanks to the robust data center monetization trends and the resilient legacy RIM business for excellent capital appreciation/dividend returns. The data center segment drives profitable, high growth trends while being supported by aggressive capex, strong leasing pipelines, and higher renewal rates. IRM's main monetization avenue through legacy RIM/storage business remains resilient to the rapidly changing industry trends, thanks to the wide customer base with lease terms at ~14.5 years. The stock’s -23.9% pullback creates a compelling entry point, with it triggering the cheap FWD Price/AFFO of 16.09x (peer group mean at ~18.8x) and the expanded dividend yields of 4.19%. IRM’s well-covered dividend (low 60s% AFFO payout) and upside potential to $118.50 support a strong margin of safety, aided by the oversold technical indicators. imaginima/iStock via Getty Images I previously covered Iron Mountain Incorporated (IRM) in October 2025, discussing how its Matterhorn Strategy: Accelerating Growth had worked out brilliantly, with it triggering the accelerated Growth Businesses segment at a 4Y CAGR of +20%.This article was written byJuxtaposed Ideas15K FollowersFollowI am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure:I/we have a beneficial long position in the shares of amzn either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.