What Makes Iron Mountain Inc One of the Most Promising Companies - Essay Example

Lecturer Iron Mountain Incorporated Iron Mountain Inc is an enterprise information management company based in Boston, Massachusetts. It was established in 1951 to help in providing a wide range of services including consultancy, disaster recovery, physical and digital record keeping services to its diverse clients in Latin America, North America, Asia and Europe. Since its establishment, it has expanded and grown to be a multinational. Thus, it currently has over 1,000 branches spread across the world. Because of proper management, this company has realized a tremendous growth in the past. Thus, in 2012, it had total of 19,000 employees which enabled it to get revenue of $3.0 in the year 2012. Because of this, the company has been listed at the New York Stock Exchange (NYSE) in which it trades its shares. Because of its sterling performance, it has become a member of the prestigious FORTUNE 100 in which it is ranked number 712. At the same time, as an S&P 500, it has also become a member of FTSE4Good index. These are clear indications that the company is performing well. This has been evidenced in the way its shares have been bought at the stock market (Chisholm 33). With a good management and high security of the organization’s facilities, it has become one of the most admirable companies in which everyone wants to associate. After all, it has banked a lot of awards and recognitions. For instance, between 2006 and 2011, it was named by the Fortune Magazine as one of the most admirable companies in USA. This really improved its reputation and enabled it to be considered as one of the most promising companies to invest in. As a properly managed company, Iron Mountain Incorporated has managed to perform well in the stock market. Since 2004, it has managed to do so well because there are many potential shareholders who are willing to invest their resources in it so as to be part of its owners. One of the reasons for this attraction is because it has been making lots of profits after each year. With its expansive staff of at least 1,000 professionals, the company is sure of winning the confidence and trust of everyone (Zeller Jr,). Thus, they have thronged the stock market so as to but its shares. With its diverse service delivery in records data management solutions, records management and information destruction, it has been able to be among the most outstanding organizations in the eyes of investors. With its growth, the company has been appealing to many people. As compared to some of its major competitors such as the ACXMAction Corp; MGLNMagellan Health Services; TWTowers Watson & Co.; and BITABitauto Holdings Ltd., Iron Mountain Incorporated still appears to be better in the stock market. In 2013, it had an earning growth of -48.62% and a revenue growth of +0.69%. However, in 2014, the company had an earning growth of +4.85%. This was much better than those of its competitors which were far much less as compared to its own. This is a clear indication that the company still stands a chance of performing well in the stock market. It has indeed established a ground which will enable it to continue exercising its dominance in the market. One of the indications of good performance of this company is its profitability. In 2013, it realized an annual profit of $97.3 million. This resulted into a net profit margin of 3.19%. Although the market conditions have been so challenging, the same trend has been witnessed over the past years. The company has been able to show stability in profit making. Thus, its shares have been stable as well (Geisst 19). However, the major challenge was experienced during the global economic meltdown which actually affected all the organizations. However, after that, the company has managed to recover and stabilize in the market. This explains why its profitability still remains higher than the anticipated. According to the company’s forecast, it is anticipated that it still stands a better chance of realizing a growth in the market. Much of this will be achieved because of its digital storage services which have become popular with a majority of its clientele (Sobel 68). In reality, the company has put a 12-moth forecast on its share prices. If achieved, it will be able to have a low and high estimate of 25.00 and 41.25 respectively. This is equated to a median estimate of +13.84% which essentially represents an increase of 28.11 from that of 2013. This means that the company is still optimistic of achieving some growth in the near future. However, for it to do this, it should be able to put in place well-planned viable and feasible strategies. Otherwise, it might not be possible to do anything because it might succumb to the high level of competition in the market (McCourt). Hence, with that projected revenue, the company is in a position of realizing much growth. Its profitability is expected to increase in the near future. With the increasing cases of terrorist attacks, many people especially middle and high class individuals are becoming worried about the safety of their documents (Buck 73). The best option for them is to deposit such documents to high secured Iron Mountain stores spread across the globe. This is good news to the company since it will have to increase its customer base. With this in mind, it is quite clear that the company will have to grow. At the same time, as this happens, it means that the potential shareholders will have to be attracted to the company. Thus, they will be confident of investing their resources there. After all, they will have the assurance of reaping some dividends at the end of the day (Witkowski). In conclusion, Iron Mountain Inc is one of the most promising companies in the country. With proper management, it has succeeded to realize a tremendous growth by increasing the number of its branches through expansion and acquisitions. In 2002, it acquired the Document Systems Inc. in Columbia and the File House Offsite Record Storage, Fredericksburg. Later, in 2013, it acquired Information Storage Consolidation Co LLC before publicly declaring its intent to acquire Archivum and Cornerstone Records Management companies which it actually did (Sherman and Danielle). With its current earnings of $1.79 per share, the company is destined to outstanding performance in the stock market. Works Cited Buck, James. The New York Stock Exchange: The First 200 Years. New York: Greenwich Pub. Group, 2007. Print. Chisholm, Andrew. An Introduction to International Capital Markets: Products, Strategies, Participants. New York: Wiley Publishers, 2005. Print. Geisst, Charles. Wall Street: A History – From its Beginnings to the Fall of Enron. Oxford: Oxford University Press, 2008. Print. McCourt, Mark (2008-11-01). "Additional details on the Security 500, along with the full ranking" Securitymagazine.com. Retrieved 2014-04-04. Sherman, Alex and Danielle Kucera. "Iron Mountain CEO Brennan Steps Down, Will Be Replaced By Chairman Reese”.Bloomberg.com. retrieved 2014-04/04. Sobel, Robert . N.Y.S.E.: A History of the New York Stock Exchange, 1935–1975. Weybright and Talley, 2000. Print. Witkowski, Tom. "Iron Mountains peak performance makes it BBJs Company of the Year" Boston: Boston Business Journal, 2002. Zeller Jr, TOM (May 3, 2005). "Time Warner Says Data on Employees Is Lost" The New York Times. Retrieved 2014-04-04. Read More