OUTFRONT MEDIA INC (OUT)
US69007J1060 - REIT
Overall OUT gets a fundamental rating of 3 out of 10. We evaluated OUT against 28 industry peers in the Specialized REITs industry. Both the profitability and financial health of OUT have multiple concerns. OUT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
OUT had positive earnings in the past year.
OUT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OUT reported negative net income in multiple years.
In the past 5 years OUT always reported a positive cash flow from operatings.
1.2 Ratios
OUT's Return On Assets of -7.87% is on the low side compared to the rest of the industry. OUT is outperformed by 92.86% of its industry peers.
The Return On Equity of OUT (-60.43%) is worse than 89.29% of its industry peers.
OUT's Return On Invested Capital of 4.10% is in line compared to the rest of the industry. OUT outperforms 42.86% of its industry peers.
OUT had an Average Return On Invested Capital over the past 3 years of 3.56%. This is in line with the industry average of 5.08%.
The 3 year average ROIC (3.56%) for OUT is below the current ROIC(4.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.87% | ||
| ROE | -60.43% | ||
| ROIC | 4.1% |
ROA(3y)-1.82%
ROA(5y)-0.86%
ROE(3y)-16.6%
ROE(5y)-8.62%
ROIC(3y)3.56%
ROIC(5y)3.3%
1.3 Margins
With a Operating Margin value of 14.40%, OUT is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of OUT has declined.
OUT's Gross Margin of 74.44% is in line compared to the rest of the industry. OUT outperforms 57.14% of its industry peers.
OUT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.4% | ||
| PM (TTM) | N/A | ||
| GM | 74.44% |
OM growth 3Y40.19%
OM growth 5Y-3.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.28%
GM growth 5Y9.88%
2. Health
2.1 Basic Checks
OUT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
OUT has more shares outstanding than it did 1 year ago.
OUT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OUT is higher compared to a year ago.
2.2 Solvency
OUT has an Altman-Z score of 0.28. This is a bad value and indicates that OUT is not financially healthy and even has some risk of bankruptcy.
OUT's Altman-Z score of 0.28 is on the low side compared to the rest of the industry. OUT is outperformed by 85.71% of its industry peers.
The Debt to FCF ratio of OUT is 20.50, which is on the high side as it means it would take OUT, 20.50 years of fcf income to pay off all of its debts.
OUT has a Debt to FCF ratio (20.50) which is in line with its industry peers.
A Debt/Equity ratio of 3.77 is on the high side and indicates that OUT has dependencies on debt financing.
With a Debt to Equity ratio value of 3.77, OUT is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.77 | ||
| Debt/FCF | 20.5 | ||
| Altman-Z | 0.28 |
ROIC/WACC0.5
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.67 indicates that OUT may have some problems paying its short term obligations.
OUT has a Current ratio (0.67) which is comparable to the rest of the industry.
OUT has a Quick Ratio of 0.67. This is a bad value and indicates that OUT is not financially healthy enough and could expect problems in meeting its short term obligations.
OUT has a Quick ratio of 0.67. This is comparable to the rest of the industry: OUT outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
OUT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.51%.
Measured over the past years, OUT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.30% on average per year.
The Revenue has been growing slightly by 2.74% in the past year.
OUT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.54% yearly.
EPS 1Y (TTM)-39.51%
EPS 3YN/A
EPS 5Y-14.3%
EPS growth Q2Q17.65%
Revenue 1Y (TTM)2.74%
Revenue growth 3Y13.77%
Revenue growth 5Y2.54%
Revenue growth Q2Q1.31%
3.2 Future
The Earnings Per Share is expected to grow by 19.40% on average over the next years. This is quite good.
Based on estimates for the next years, OUT will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y39.75%
EPS Next 2Y24.88%
EPS Next 3Y19.4%
EPS Next 5YN/A
Revenue Next Year2.45%
Revenue Next 2Y2.29%
Revenue Next 3Y2.26%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
OUT is valuated quite expensively with a Price/Earnings ratio of 30.00.
The rest of the industry has a similar Price/Earnings ratio as OUT.
When comparing the Price/Earnings ratio of OUT to the average of the S&P500 Index (28.05), we can say OUT is valued inline with the index average.
OUT is valuated rather expensively with a Price/Forward Earnings ratio of 21.47.
75.00% of the companies in the same industry are more expensive than OUT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.30. OUT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
OUT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OUT is cheaper than 89.29% of the companies in the same industry.
OUT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OUT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.24 | ||
| EV/EBITDA | 12.02 |
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.
A more expensive valuation may be justified as OUT's earnings are expected to grow with 19.40% in the coming years.
PEG (NY)0.75
PEG (5Y)N/A
EPS Next 2Y24.88%
EPS Next 3Y19.4%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.94%, OUT is a good candidate for dividend investing.
OUT's Dividend Yield is rather good when compared to the industry average which is at 5.08. OUT pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
5.2 History
The dividend of OUT decreases each year by -2.98%.
OUT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of OUT decreased in the last 3 years.
Dividend Growth(5Y)-2.98%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of OUT are negative and hence is the payout ratio. OUT will probably not be able to sustain this dividend level.
DP-47.13%
EPS Next 2Y24.88%
EPS Next 3Y19.4%
OUTFRONT MEDIA INC
NYSE:OUT (5/8/2024, 7:10:52 PM)
After market: 14.7 0 (0%)14.7
-0.42 (-2.78%)
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 Cap2.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.94% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 21.47 | ||
| 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)0.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.87% | ||
| ROE | -60.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.4% | ||
| PM (TTM) | N/A | ||
| GM | 74.44% | ||
| 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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.67 | ||
| 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)-39.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y39.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.74%
Revenue growth 3Y13.77%
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