LAMAR ADVERTISING CO-A (LAMR) Stock Fundamental Analysis
NASDAQ:LAMR - Nasdaq - US5128161099 - REIT - Currency: USD
LAMR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. LAMR has a medium profitability rating, but doesn't score so well on its financial health evaluation. LAMR is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years LAMR has been profitable.
Each year in the past 5 years LAMR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.49%, LAMR is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
LAMR's Return On Equity of 34.52% is amongst the best of the industry. LAMR outperforms 96.67% of its industry peers.
LAMR has a better Return On Invested Capital (7.15%) 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 5.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 34.52% | ||
| ROIC | 7.15% |
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 Profit Margin value of 16.38%, LAMR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
LAMR's Profit Margin has declined in the last couple of years.
LAMR has a worse Operating Margin (23.83%) than 66.67% of its industry peers.
LAMR's Operating Margin has declined in the last couple of years.
LAMR's Gross Margin of 81.48% is fine compared to the rest 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 | 23.83% | ||
| PM (TTM) | 16.38% | ||
| GM | 81.48% |
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.
The number of shares outstanding for LAMR has been increased compared to 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
Based on the Altman-Z score of 1.63, we must say that LAMR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LAMR (1.63) is better than 80.00% of its industry peers.
LAMR has a debt to FCF ratio of 4.31. This is a neutral value as LAMR would need 4.31 years to pay back of all of its debts.
The Debt to FCF ratio of LAMR (4.31) is better than 96.67% of its industry peers.
A Debt/Equity ratio of 2.84 is on the high side and indicates that LAMR has dependencies on debt financing.
LAMR has a worse Debt to Equity ratio (2.84) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.84 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.91
WACC7.83%
2.3 Liquidity
LAMR has a Current Ratio of 0.55. This is a bad value and indicates that LAMR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAMR's Current ratio of 0.55 is on the low side compared to the rest of the industry. LAMR is outperformed by 60.00% of its industry peers.
LAMR has a Quick Ratio of 0.55. This is a bad value and indicates that LAMR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAMR's Quick ratio of 0.55 is on the low side compared to the rest of the industry. LAMR is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
LAMR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.22%.
Measured over the past years, LAMR shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.56% on average per year.
Looking at the last year, LAMR shows a small growth in Revenue. The Revenue has grown by 4.56% in the last year.
The Revenue has been growing slightly by 4.71% on average over the past years.
EPS 1Y (TTM)-27.22%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%-100.68%
Revenue 1Y (TTM)4.56%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%4.26%
3.2 Future
LAMR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.78% yearly.
Based on estimates for the next years, LAMR will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y64.78%
EPS Next 2Y27.71%
EPS Next 3Y19.78%
EPS Next 5YN/A
Revenue Next Year2.13%
Revenue Next 2Y3.02%
Revenue Next 3Y3%
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.
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
With a Price/Earnings ratio of 32.65, LAMR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as LAMR.
Compared to an average S&P500 Price/Earnings ratio of 24.12, LAMR is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 19.82, the valuation of LAMR can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAMR indicates a rather cheap valuation: LAMR is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.42. LAMR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 70.00% of the companies listed in the same industry.
83.33% of the companies in the same industry are more expensive than LAMR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.79 | ||
| EV/EBITDA | 15.49 |
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.
A more expensive valuation may be justified as LAMR's earnings are expected to grow with 19.78% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y27.71%
EPS Next 3Y19.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.44%, LAMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.74, LAMR has a dividend in line with its industry peers.
LAMR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
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 Years0
Div Non Decr Years3
5.3 Sustainability
LAMR pays out 160.22% 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.
DP160.22%
EPS Next 2Y27.71%
EPS Next 3Y19.78%
115.27
-3.14 (-2.65%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change-0.02%
Ins Owners0.78%
Ins Owner Change-5.87%
Market Cap11.82B
Analysts72.31
Price Target133.37 (15.7%)
Short Float %4.8%
Short Ratio5.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Yearly Dividend5.67
Dividend Growth(5Y)8.03%
DP160.22%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.73%
Min EPS beat(2)-100.67%
Max EPS beat(2)-2.79%
EPS beat(4)0
Avg EPS beat(4)-28.98%
Min EPS beat(4)-100.67%
Max EPS beat(4)-2.79%
EPS beat(8)1
Avg EPS beat(8)-16.75%
EPS beat(12)4
Avg EPS beat(12)-13.22%
EPS beat(16)7
Avg EPS beat(16)-8.18%
Revenue beat(2)0
Avg Revenue beat(2)-4.72%
Min Revenue beat(2)-6.86%
Max Revenue beat(2)-2.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)-0.5%
Revenue beat(8)0
Avg Revenue beat(8)-1.98%
Revenue beat(12)2
Avg Revenue beat(12)-1.03%
Revenue beat(16)6
Avg Revenue beat(16)-0.35%
PT rev (1m)-2.61%
PT rev (3m)-2.39%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)37.43%
EPS NY rev (1m)-4.33%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.64%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.65 | ||
| Fwd PE | 19.82 | ||
| P/S | 5.35 | ||
| P/FCF | 15.79 | ||
| P/OCF | 13.53 | ||
| P/B | 11.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.49 |
EPS(TTM)3.53
EY3.06%
EPS(NY)5.82
Fwd EY5.05%
FCF(TTM)7.3
FCFY6.33%
OCF(TTM)8.52
OCFY7.39%
SpS21.53
BVpS10.21
TBVpS-20
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 34.52% | ||
| ROCE | 9.06% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.22% | ||
| ROICexgc | 15.62% | ||
| OM | 23.83% | ||
| PM (TTM) | 16.38% | ||
| GM | 81.48% | ||
| FCFM | 33.91% |
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 | 2.84 | ||
| Debt/FCF | 4.31 | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 27.06% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 207.01% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.63 |
F-Score6
WACC7.83%
ROIC/WACC0.91
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)-27.22%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%-100.68%
EPS Next Y64.78%
EPS Next 2Y27.71%
EPS Next 3Y19.78%
EPS Next 5YN/A
Revenue 1Y (TTM)4.56%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%4.26%
Revenue Next Year2.13%
Revenue Next 2Y3.02%
Revenue Next 3Y3%
Revenue Next 5YN/A
EBIT growth 1Y-21.48%
EBIT growth 3Y0.44%
EBIT growth 5Y0.6%
EBIT Next Year54.54%
EBIT Next 3Y18.55%
EBIT Next 5YN/A
FCF growth 1Y23.62%
FCF growth 3Y7.15%
FCF growth 5Y8.84%
OCF growth 1Y11.48%
OCF growth 3Y5.96%
OCF growth 5Y6.73%