LAMAR ADVERTISING CO-A (LAMR)
US5128161099 - REIT
We assign a fundamental rating of 5 out of 10 to LAMR. LAMR was compared to 28 industry peers in the Specialized REITs industry. LAMR has an excellent profitability rating, but 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
In the past year LAMR was profitable.
LAMR had a positive operating cash flow in the past year.
Each year in the past 5 years LAMR has been profitable.
In the past 5 years LAMR always reported a positive cash flow from operatings.
1.2 Ratios
LAMR has a better Return On Assets (7.55%) than 96.43% of its industry peers.
LAMR has a better Return On Equity (40.73%) than 92.86% of its industry peers.
LAMR's Return On Invested Capital of 9.05% is amongst the best of the industry. LAMR outperforms 89.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LAMR is above the industry average of 5.06%.
The last Return On Invested Capital (9.05%) for LAMR is above the 3 year average (8.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 40.73% | ||
| ROIC | 9.05% |
ROA(3y)6.91%
ROA(5y)6.24%
ROE(3y)36.42%
ROE(5y)32.19%
ROIC(3y)8.13%
ROIC(5y)7.62%
1.3 Margins
LAMR has a better Profit Margin (23.47%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of LAMR has grown nicely.
LAMR has a worse Operating Margin (31.73%) than 64.29% of its industry peers.
In the last couple of years the Operating Margin of LAMR has grown nicely.
With a decent Gross Margin value of 81.76%, LAMR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
LAMR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.73% | ||
| PM (TTM) | 23.47% | ||
| GM | 81.76% |
OM growth 3Y7.47%
OM growth 5Y2%
PM growth 3Y14.86%
PM growth 5Y4.6%
GM growth 3Y-2.38%
GM growth 5Y4.54%
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.
The number of shares outstanding for LAMR has been increased compared to 1 year ago.
The number of shares outstanding for LAMR has been increased compared to 5 years ago.
LAMR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that LAMR is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, LAMR is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Debt to FCF ratio of LAMR is 5.55, which is a neutral value as it means it would take LAMR, 5.55 years of fcf income to pay off all of its debts.
LAMR has a better Debt to FCF ratio (5.55) than 85.71% of its industry peers.
A Debt/Equity ratio of 2.55 is on the high side and indicates that LAMR has dependencies on debt financing.
The Debt to Equity ratio of LAMR (2.55) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | 5.55 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.06
WACC8.51%
2.3 Liquidity
LAMR has a Current Ratio of 0.52. 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 (0.52) is worse than 71.43% of its industry peers.
LAMR has a Quick Ratio of 0.52. 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 has a worse Quick ratio (0.52) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.27% over the past year.
Measured over the past years, LAMR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.54% on average per year.
LAMR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.87%.
The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)12.27%
EPS 3Y23.9%
EPS 5Y8.54%
EPS growth Q2Q124.62%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y10.4%
Revenue growth 5Y5.34%
Revenue growth Q2Q3.81%
3.2 Future
Based on estimates for the next years, LAMR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.77% on average per year.
LAMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y7.14%
EPS Next 2Y9.27%
EPS Next 3Y8.77%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y4.38%
Revenue Next 3Y4.07%
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 stable.
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
The Price/Earnings ratio is 24.47, which indicates a rather expensive current valuation of LAMR.
Compared to the rest of the industry, the Price/Earnings ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 64.29% of the companies listed in the same industry.
LAMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
With a Price/Forward Earnings ratio of 22.84, LAMR is valued on the expensive side.
71.43% of the companies in the same industry are more expensive than LAMR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LAMR to the average of the S&P500 Index (20.72), we can say LAMR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAMR is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.04 | ||
| EV/EBITDA | 16.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LAMR does not grow enough to justify the current Price/Earnings ratio.
LAMR has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.43
PEG (5Y)2.87
EPS Next 2Y9.27%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, LAMR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.98, LAMR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, LAMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of LAMR has a limited annual growth rate of 2.28%.
LAMR has paid a dividend for at least 10 years, which is a reliable track record.
LAMR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
103.07% of the earnings are spent on dividend by LAMR. This is not a sustainable payout ratio.
The dividend of LAMR is growing, but earnings are growing more, so the dividend growth is sustainable.
DP103.07%
EPS Next 2Y9.27%
EPS Next 3Y8.77%
LAMAR ADVERTISING CO-A
NASDAQ:LAMR (5/2/2024, 7:03:52 PM)
After market: 118.68 0 (0%)118.68
+1.18 (+1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.47 | ||
| Fwd PE | 22.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.43
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 40.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.73% | ||
| PM (TTM) | 23.47% | ||
| GM | 81.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.27%
EPS 3Y23.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.87%
Revenue growth 3Y10.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y