LAMAR ADVERTISING CO-A (LAMR) Stock Fundamental Analysis
NASDAQ:LAMR - Nasdaq - US5128161099 - REIT - Currency: USD
Taking everything into account, LAMR scores 5 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LAMR was profitable.
LAMR had a positive operating cash flow in the past year.
In the past 5 years LAMR has always been profitable.
Each year in the past 5 years LAMR had a positive operating cash flow.
1.2 Ratios
LAMR has a Return On Assets of 6.45%. This is amongst the best in the industry. LAMR outperforms 86.67% of its industry peers.
LAMR has a better Return On Equity (40.98%) than 96.67% of its industry peers.
LAMR's Return On Invested Capital of 7.11% is fine compared to the rest of the industry. LAMR outperforms 80.00% of its industry peers.
LAMR had an Average Return On Invested Capital over the past 3 years of 7.98%. This 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
LAMR has a Profit Margin of 19.06%. This is in the better half of the industry: LAMR outperforms 63.33% of its industry peers.
In the last couple of years the Profit Margin of LAMR has declined.
LAMR has a worse Operating Margin (23.71%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of LAMR has declined.
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LAMR has more shares outstanding
Compared to 5 years ago, LAMR has more shares outstanding
Compared to 1 year ago, LAMR has an improved debt to assets ratio.
2.2 Solvency
LAMR has an Altman-Z score of 1.71. This is a bad value and indicates that LAMR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.71, LAMR is doing good in 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.
Looking at the Debt to FCF ratio, with a value of 4.19, LAMR belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
LAMR has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external 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 | 1.71 |
ROIC/WACC0.89
WACC8.01%
2.3 Liquidity
A Current Ratio of 0.57 indicates that LAMR may have some problems paying its short term obligations.
LAMR's Current ratio of 0.57 is in line compared 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.
The Quick ratio of LAMR (0.57) is comparable to the rest of the 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.
LAMR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
LAMR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.71% yearly.
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
Based on estimates for the next years, LAMR will show a very strong growth in Earnings Per Share. The EPS will grow by 23.14% on average per year.
LAMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y69.59%
EPS Next 2Y29.65%
EPS Next 3Y23.14%
EPS Next 5YN/A
Revenue Next Year2.84%
Revenue Next 2Y3.19%
Revenue Next 3Y3.5%
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
LAMR is valuated quite expensively with a Price/Earnings ratio of 30.44.
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.
Compared to an average S&P500 Price/Earnings ratio of 28.04, LAMR is valued at the same level.
A Price/Forward Earnings ratio of 21.14 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 21.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAMR is valued a bit cheaper than 70.00% of the companies in the same industry.
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 | 16.78 | ||
| EV/EBITDA | 16.11 |
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.
LAMR has a very decent profitability rating, which may justify a higher PE ratio.
LAMR's earnings are expected to grow with 23.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y29.65%
EPS Next 3Y23.14%
5. Dividend
5.1 Amount
LAMR has a Yearly Dividend Yield of 4.96%, which is a nice return.
LAMR's Dividend Yield is comparable with the industry average which is at 5.62.
LAMR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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
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 2Y29.65%
EPS Next 3Y23.14%
125.42
+0.44 (+0.35%)
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 Change-0.02%
Ins Owners0.78%
Ins Owner Change0.71%
Market Cap12.84B
Analysts75.38
Price Target132.85 (5.92%)
Short Float %5.92%
Short Ratio8.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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)0%
PT rev (3m)-2.98%
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%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 21.14 | ||
| P/S | 5.8 | ||
| P/FCF | 16.78 | ||
| P/OCF | 14.42 | ||
| P/B | 12.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.11 |
EPS(TTM)4.12
EY3.28%
EPS(NY)5.93
Fwd EY4.73%
FCF(TTM)7.47
FCFY5.96%
OCF(TTM)8.7
OCFY6.94%
SpS21.63
BVpS10.06
TBVpS-20.04
PEG (NY)0.44
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 | 1.71 |
F-Score6
WACC8.01%
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 Y69.59%
EPS Next 2Y29.65%
EPS Next 3Y23.14%
EPS Next 5YN/A
Revenue 1Y (TTM)3.58%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%1.46%
Revenue Next Year2.84%
Revenue Next 2Y3.19%
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%