LAMAR ADVERTISING CO-A (LAMR) Stock Fundamental Analysis
NASDAQ:LAMR - Nasdaq - US5128161099 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to LAMR. LAMR was compared to 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LAMR was profitable.
In the past year LAMR had a positive cash flow from operations.
LAMR had positive earnings in each of the past 5 years.
Each year in the past 5 years LAMR had a positive operating cash flow.
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 has a better Return On Equity (40.98%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.11%, LAMR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
LAMR had an Average Return On Invested Capital over the past 3 years of 7.98%. This is above the industry average of 5.15%.
| 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
The Profit Margin of LAMR (19.06%) is comparable to the rest of the industry.
LAMR's Profit Margin has declined in the last couple of years.
LAMR has a Operating Margin of 23.71%. This is in the lower half of the industry: LAMR underperforms 66.67% of its industry peers.
LAMR's Operating Margin has declined in the last couple of years.
LAMR has a Gross Margin of 81.47%. This is in the better half of the industry: LAMR outperforms 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
LAMR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LAMR has more shares outstanding
The number of shares outstanding for LAMR has been increased compared to 5 years ago.
The debt/assets ratio for LAMR has been reduced compared to a year ago.
2.2 Solvency
LAMR has an Altman-Z score of 1.67. This is a bad value and indicates that LAMR is not financially healthy and even has some risk of bankruptcy.
LAMR has a better Altman-Z score (1.67) than 83.33% of its industry peers.
LAMR has a debt to FCF ratio of 4.19. This is a neutral value as LAMR would need 4.19 years to pay back of all of its debts.
The Debt to FCF ratio of LAMR (4.19) is better than 96.67% of its industry peers.
LAMR has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.89, LAMR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.9
WACC7.94%
2.3 Liquidity
LAMR has a Current Ratio of 0.57. This is a bad value and indicates that LAMR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LAMR (0.57) is worse than 63.33% of its industry peers.
A Quick Ratio of 0.57 indicates that LAMR may have some problems paying its short term obligations.
The Quick ratio of LAMR (0.57) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for LAMR have decreased strongly by -12.78% in the last year.
LAMR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
LAMR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.55%.
The Revenue has been growing slightly by 4.71% on average over the past years.
EPS 1Y (TTM)-12.78%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%13.43%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%2.49%
3.2 Future
LAMR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.14% yearly.
LAMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y69.59%
EPS Next 2Y29.65%
EPS Next 3Y23.14%
EPS Next 5YN/A
Revenue Next Year2.97%
Revenue Next 2Y3.3%
Revenue Next 3Y3.58%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.67, which means the current valuation is very expensive for LAMR.
Based on the Price/Earnings ratio, LAMR is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
LAMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.87.
With a Price/Forward Earnings ratio of 20.77, LAMR is valued on the expensive side.
LAMR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LAMR is cheaper than 86.67% of the companies in the same industry.
LAMR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 20.77 |
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.
Based on the Price/Free Cash Flow ratio, LAMR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.5 | ||
| EV/EBITDA | 15.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LAMR may justify a higher PE ratio.
A more expensive valuation may be justified as LAMR's earnings are expected to grow with 23.14% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y29.65%
EPS Next 3Y23.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.11%, LAMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.03, LAMR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, LAMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
5.2 History
On average, the dividend of LAMR grows each year by 8.03%, which is quite nice.
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
LAMR pays out 143.41% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LAMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP143.41%
EPS Next 2Y29.65%
EPS Next 3Y23.14%
123.27
+2.05 (+1.69%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners98.7%
Inst Owner Change0.72%
Ins Owners0.78%
Ins Owner Change0.71%
Market Cap12.62B
Analysts75.38
Price Target136.94 (11.09%)
Short Float %5.88%
Short Ratio10.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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)3.07%
PT rev (3m)4.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.04%
EPS NY rev (1m)0%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.99%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.67 | ||
| Fwd PE | 20.77 | ||
| P/S | 5.7 | ||
| P/FCF | 16.5 | ||
| P/OCF | 14.17 | ||
| P/B | 12.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)4.3
EY3.49%
EPS(NY)5.93
Fwd EY4.81%
FCF(TTM)7.47
FCFY6.06%
OCF(TTM)8.7
OCFY7.06%
SpS21.63
BVpS10.06
TBVpS-20.04
PEG (NY)0.41
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 | 1.67 |
F-Score6
WACC7.94%
ROIC/WACC0.9
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)-12.78%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%13.43%
EPS Next Y69.59%
EPS Next 2Y29.65%
EPS Next 3Y23.14%
EPS Next 5YN/A
Revenue 1Y (TTM)4.55%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%2.49%
Revenue Next Year2.97%
Revenue Next 2Y3.3%
Revenue Next 3Y3.58%
Revenue Next 5YN/A
EBIT growth 1Y-22.36%
EBIT growth 3Y0.44%
EBIT growth 5Y0.6%
EBIT Next Year53.13%
EBIT Next 3Y18.72%
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%