We assign a fundamental rating of 3 out of 10 to CCO. CCO was compared to 92 industry peers in the Media industry. While CCO is still in line with the averages on profitability rating, there are concerns on its financial health. CCO has a expensive valuation and it also scores bad on growth.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CCO had negative earnings in the past year.
In the past year CCO had a positive cash flow from operations.
CCO had negative earnings in each of the past 5 years.
In multiple years CCO reported negative operating cash flow during the last 5 years.

1.2 Ratios

CCO has a Return On Assets (-4.77%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.21%, CCO belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CCO is in line with the industry average of 7.07%.
The last Return On Invested Capital (7.21%) for CCO is above the 3 year average (5.68%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-4.77%
ROE	N/A
ROIC	7.21%

ROA(3y)-4.07%

ROA(5y)-6.1%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)5.68%

ROIC(5y)N/A

1.3 Margins

The Operating Margin of CCO (19.07%) is better than 91.30% of its industry peers.
In the last couple of years the Operating Margin of CCO has grown nicely.
The Gross Margin of CCO (54.86%) is better than 65.22% of its industry peers.
CCO's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	19.07%
PM (TTM)	N/A
GM	54.86%

OM growth 3Y41.61%

OM growth 5Y14.66%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y7.5%

GM growth 5Y3.63%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CCO is destroying value.
Compared to 1 year ago, CCO has more shares outstanding
CCO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CCO has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of -1.82, we must say that CCO is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.82, CCO is not doing good in the industry: 75.00% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-1.82

ROIC/WACC0.95

WACC7.6%

2.3 Liquidity

CCO has a Current Ratio of 1.14. This is a normal value and indicates that CCO is financially healthy and should not expect problems in meeting its short term obligations.
CCO has a Current ratio (1.14) which is comparable to the rest of the industry.
CCO has a Quick Ratio of 1.14. This is a normal value and indicates that CCO is financially healthy and should not expect problems in meeting its short term obligations.
CCO has a Quick ratio of 1.14. This is comparable to the rest of the industry: CCO outperforms 47.83% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.14
Quick Ratio	1.14

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CCO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 96.42%, which is quite impressive.
CCO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.95%.
Measured over the past years, CCO shows a very negative growth in Revenue. The Revenue has been decreasing by -10.92% on average per year.

EPS 1Y (TTM)96.42%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-100%

Revenue 1Y (TTM)4.95%

Revenue growth 3Y-12.42%

Revenue growth 5Y-10.92%

Sales Q2Q%-27.43%

3.2 Future

The Earnings Per Share is expected to grow by 26.08% on average over the next years. This is a very strong growth
Based on estimates for the next years, CCO will show a decrease in Revenue. The Revenue will decrease by -4.04% on average per year.

EPS Next Y111.4%

EPS Next 2Y31.52%

EPS Next 3Y26.08%

EPS Next 5YN/A

Revenue Next Year-24.59%

Revenue Next 2Y-11.26%

Revenue Next 3Y-6.62%

Revenue Next 5Y-4.04%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for CCO. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for CCO. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CCO.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	12.81

4.3 Compensation for Growth

A more expensive valuation may be justified as CCO's earnings are expected to grow with 26.08% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y31.52%

EPS Next 3Y26.08%

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5. Dividend

5.1 Amount

CCO does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	0%

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CLEAR CHANNEL OUTDOOR HOLDIN / CCO FAQ

What is the fundamental rating for CCO stock?

ChartMill assigns a fundamental rating of 3 / 10 to CCO.

Can you provide the valuation status for CLEAR CHANNEL OUTDOOR HOLDIN?

ChartMill assigns a valuation rating of 1 / 10 to CLEAR CHANNEL OUTDOOR HOLDIN (CCO). This can be considered as Overvalued.

Can you provide the profitability details for CLEAR CHANNEL OUTDOOR HOLDIN?

CLEAR CHANNEL OUTDOOR HOLDIN (CCO) has a profitability rating of 5 / 10.

How sustainable is the dividend of CLEAR CHANNEL OUTDOOR HOLDIN (CCO) stock?

The dividend rating of CLEAR CHANNEL OUTDOOR HOLDIN (CCO) is 0 / 10 and the dividend payout ratio is 0%.