LAMAR ADVERTISING CO-A (LAMR) Stock Fundamental Analysis
NASDAQ:LAMR - Nasdaq - US5128161099 - REIT - Currency: USD
Overall LAMR gets a fundamental rating of 5 out of 10. We evaluated LAMR against 30 industry peers in the Specialized REITs industry. While LAMR is still in line with the averages on profitability rating, there are concerns on its financial health. LAMR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LAMR had positive earnings in the past year.
In the past year LAMR had a positive cash flow from operations.
In the past 5 years LAMR has always been profitable.
In the past 5 years LAMR always reported a positive cash flow from operatings.
1.2 Ratios
LAMR's Return On Assets of 6.45% is amongst the best of the industry. LAMR outperforms 86.67% of its industry peers.
LAMR's Return On Equity of 40.98% is amongst the best of the industry. LAMR outperforms 96.67% of its industry peers.
LAMR has a better Return On Invested Capital (7.11%) than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LAMR is above the industry average of 5.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 40.98% | ||
| ROIC | 7.11% |
ROA(3y)6.6%
ROA(5y)6.08%
ROE(3y)37.3%
ROE(5y)32.79%
ROIC(3y)7.98%
ROIC(5y)7.52%
1.3 Margins
With a decent Profit Margin value of 19.06%, LAMR is doing good in the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Profit Margin of LAMR has declined.
LAMR's Operating Margin of 23.71% is on the low side compared to the rest of the industry. LAMR is outperformed by 66.67% of its industry peers.
In the last couple of years the Operating Margin of LAMR has declined.
LAMR has a better Gross Margin (81.47%) than 73.33% of its industry peers.
LAMR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.71% | ||
| PM (TTM) | 19.06% | ||
| GM | 81.47% |
OM growth 3Y-6.38%
OM growth 5Y-3.92%
PM growth 3Y-8.94%
PM growth 5Y-5.03%
GM growth 3Y-1%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LAMR is still creating some value.
LAMR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LAMR has more shares outstanding
LAMR has a better debt/assets ratio than last year.
2.2 Solvency
LAMR has an Altman-Z score of 1.65. This is a bad value and indicates that LAMR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, LAMR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of LAMR is 4.19, which is a neutral value as it means it would take LAMR, 4.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LAMR (4.19) is better than 96.67% of its industry peers.
A Debt/Equity ratio of 2.89 is on the high side and indicates that LAMR has dependencies on debt financing.
LAMR's Debt to Equity ratio of 2.89 is on the low side compared to the rest of the industry. LAMR is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.89
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.57 indicates that LAMR may have some problems paying its short term obligations.
LAMR has a Current ratio of 0.57. This is comparable to the rest of the industry: LAMR outperforms 46.67% of its industry peers.
A Quick Ratio of 0.57 indicates that LAMR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, LAMR is in line with its industry, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
LAMR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.40%.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
Looking at the last year, LAMR shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
Measured over the past years, LAMR shows a small growth in Revenue. The Revenue has been growing by 4.71% on average per year.
EPS 1Y (TTM)-15.4%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%77.63%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%1.46%
3.2 Future
The Earnings Per Share is expected to grow by 20.02% on average over the next years. This is a very strong growth
LAMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y64.49%
EPS Next 2Y27.12%
EPS Next 3Y20.02%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y3.3%
Revenue Next 3Y3.5%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 29.15, LAMR can be considered very expensive at the moment.
LAMR's Price/Earnings ratio is a bit cheaper when compared to the industry. LAMR is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of LAMR to the average of the S&P500 Index (26.34), we can say LAMR is valued inline with the index average.
A Price/Forward Earnings ratio of 21.05 indicates a rather expensive valuation of LAMR.
LAMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LAMR is cheaper than 83.33% of the companies in the same industry.
LAMR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than LAMR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAMR indicates a rather cheap valuation: LAMR is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 15.58 |
4.3 Compensation for Growth
LAMR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LAMR has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LAMR's earnings are expected to grow with 20.02% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y27.12%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.10%, LAMR is a good candidate for dividend investing.
LAMR's Dividend Yield is comparable with the industry average which is at 5.55.
Compared to an average S&P500 Dividend Yield of 2.40, LAMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
5.2 History
The dividend of LAMR is nicely growing with an annual growth rate of 8.03%!
LAMR has been paying a dividend for at least 10 years, so it has a reliable track record.
LAMR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.03%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
143.41% of the earnings are spent on dividend by LAMR. This is not a sustainable payout ratio.
LAMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP143.41%
EPS Next 2Y27.12%
EPS Next 3Y20.02%
120.09
+0.3 (+0.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.59%
Inst Owner Change1.22%
Ins Owners0.78%
Ins Owner Change-5.15%
Market Cap12.30B
Analysts75.38
Price Target132.85 (10.63%)
Short Float %4.77%
Short Ratio6.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
Yearly Dividend5.67
Dividend Growth(5Y)8.03%
DP143.41%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-52.11%
Min EPS beat(2)-100.67%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-27.77%
Min EPS beat(4)-100.67%
Max EPS beat(4)-2.79%
EPS beat(8)1
Avg EPS beat(8)-15.87%
EPS beat(12)3
Avg EPS beat(12)-15.44%
EPS beat(16)6
Avg EPS beat(16)-8.59%
Revenue beat(2)0
Avg Revenue beat(2)-2.59%
Min Revenue beat(2)-2.61%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)-1.92%
Revenue beat(8)0
Avg Revenue beat(8)-2.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.55%
Revenue beat(16)5
Avg Revenue beat(16)-0.54%
PT rev (1m)1.56%
PT rev (3m)-2.98%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.15 | ||
| Fwd PE | 21.05 | ||
| P/S | 5.55 | ||
| P/FCF | 16.07 | ||
| P/OCF | 13.8 | ||
| P/B | 11.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.58 |
EPS(TTM)4.12
EY3.43%
EPS(NY)5.7
Fwd EY4.75%
FCF(TTM)7.47
FCFY6.22%
OCF(TTM)8.7
OCFY7.24%
SpS21.63
BVpS10.06
TBVpS-20.04
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 40.98% | ||
| ROCE | 9.01% | ||
| ROIC | 7.11% | ||
| ROICexc | 7.16% | ||
| ROICexgc | 15.29% | ||
| OM | 23.71% | ||
| PM (TTM) | 19.06% | ||
| GM | 81.47% | ||
| FCFM | 34.55% |
ROA(3y)6.6%
ROA(5y)6.08%
ROE(3y)37.3%
ROE(5y)32.79%
ROIC(3y)7.98%
ROIC(5y)7.52%
ROICexc(3y)8.04%
ROICexc(5y)7.62%
ROICexgc(3y)18.03%
ROICexgc(5y)17.14%
ROCE(3y)10.1%
ROCE(5y)9.52%
ROICexcg growth 3Y-4.28%
ROICexcg growth 5Y-1.97%
ROICexc growth 3Y-2.39%
ROICexc growth 5Y-1.27%
OM growth 3Y-6.38%
OM growth 5Y-3.92%
PM growth 3Y-8.94%
PM growth 5Y-5.03%
GM growth 3Y-1%
GM growth 5Y-1.65%
F-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 27% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 3.28 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 181.29% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.65 |
F-Score6
WACC7.95%
ROIC/WACC0.89
Cap/Depr(3y)45.21%
Cap/Depr(5y)41.38%
Cap/Sales(3y)7.45%
Cap/Sales(5y)6.67%
Profit Quality(3y)156.47%
Profit Quality(5y)167.04%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.4%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%77.63%
EPS Next Y64.49%
EPS Next 2Y27.12%
EPS Next 3Y20.02%
EPS Next 5YN/A
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%1.46%
Revenue Next Year2.88%
Revenue Next 2Y3.3%
Revenue Next 3Y3.5%
Revenue Next 5YN/A
EBIT growth 1Y-22.36%
EBIT growth 3Y0.44%
EBIT growth 5Y0.6%
EBIT Next Year51.16%
EBIT Next 3Y18.25%
EBIT Next 5YN/A
FCF growth 1Y25.9%
FCF growth 3Y7.15%
FCF growth 5Y8.84%
OCF growth 1Y13%
OCF growth 3Y5.96%
OCF growth 5Y6.73%