Iron Mountain

Methodology

This EPS-based method has fundamental limitations for Iron Mountain as a storage REIT, since depreciation distorts reported earnings despite stable cash flows from document and data center storage. The company's long-term storage contracts generate highly predictable revenue. Investors should use FFO or AFFO-based models that better reflect the recurring nature of storage fees.

Methodology

Traditional PEG analysis is problematic for Iron Mountain given GAAP depreciation affecting EPS. If using PEG, substitute FFO or AFFO growth for EPS growth. The company's transition from physical records storage toward data center services creates a mixed growth profile—mature document storage provides stability while data centers offer faster growth opportunities.

Methodology

Iron Mountain pays a substantial dividend yielding significantly, representing a major component of total return for a specialized REIT. The company's essential storage services generate predictable cash flows supporting reliable dividends. PEGY is highly relevant for income investors, as the combination of yield and modest growth from data center expansion creates the appeal of this defensive REIT.