Iron Mountain Incorporated (IRM): A Bull Case Theory

We came across a bullish thesis on Iron Mountain Incorporated on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on IRM. Iron Mountain Incorporated's share was trading at $91.49 as of August 15^th. IRM’s trailing and forward P/E were 653.50 and 62.50 respectively according to Yahoo Finance.

Iron Mountain Incorporated (IRM) combines the stability of its long-standing records management business with the growth potential of its expanding data center operations, creating a compelling investment case. The company recently drew renewed interest after a re-entry at more attractive valuation levels in the second quarter of 2025, following a tax-loss harvesting exit earlier in the year. Its core records management segment provides a highly predictable and durable cash flow stream, underpinning steady growth and offering investors a defensive foundation.

Complementing this stability, the data center business is positioned as the key driver of future expansion. With visibility to more than triple its current operational capacity, the data center segment is expected to deliver outsized growth that elevates the company’s overall financial trajectory. Management, led by CFO Barry Hytinen, continues to articulate a growth path of approximately 10% in total cash flow and high single-digit gains in per-share metrics over the coming years, reflecting both scale opportunities and operating leverage.

This blend of steady, recession-resilient revenue from records storage and high-growth upside from data centers makes IRM a unique hybrid in the infrastructure and technology landscape. The re-entry into shares reflects confidence that the company’s current positioning and valuation present an attractive risk/reward profile, supported by clear visibility into growth drivers. As execution on data center expansion progresses and records management continues to provide reliable cash generation, IRM is well positioned to deliver sustainable growth and shareholder value, balancing defensive qualities with secular upside.

Previously, we covered a bullish thesis on Weyerhaeuser Company (WY) by DB_SILVER_FOX in May 2025, which highlighted its timberland ownership, inflation-protected cash flows, and upside from carbon credits and real estate. The stock has appreciated about 2.41% since our coverage as the thesis partially played out. The thesis still stands given WY’s durable asset base. Stock Analysis Compilation shares a similar view but emphasizes IRM’s hybrid of stable records management and high-growth data centers.

Iron Mountain Incorporated is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held IRM at the end of the first quarter which was 40 in the previous quarter. While we acknowledge the potential of IRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.