OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J3041 - REIT - Currency: USD
Taking everything into account, OUT scores 5 out of 10 in our fundamental rating. OUT was compared to 30 industry peers in the Specialized REITs industry. While OUT is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OUT.
1. Profitability
1.1 Basic Checks
OUT had positive earnings in the past year.
In the past year OUT had a positive cash flow from operations.
In multiple years OUT reported negative net income over the last 5 years.
Each year in the past 5 years OUT had a positive operating cash flow.
1.2 Ratios
OUT's Return On Assets of 4.99% is fine compared to the rest of the industry. OUT outperforms 73.33% of its industry peers.
OUT has a better Return On Equity (37.28%) than 93.33% of its industry peers.
With a Return On Invested Capital value of 4.64%, OUT perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OUT is in line with the industry average of 5.28%.
The last Return On Invested Capital (4.64%) for OUT is above the 3 year average (4.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 37.28% | ||
| ROIC | 4.64% |
ROA(3y)-0.27%
ROA(5y)-0.41%
ROE(3y)-5.86%
ROE(5y)-4.6%
ROIC(3y)4.34%
ROIC(5y)3.27%
1.3 Margins
OUT's Profit Margin of 14.12% is in line compared to the rest of the industry. OUT outperforms 53.33% of its industry peers.
In the last couple of years the Profit Margin of OUT has grown nicely.
With a Operating Margin value of 15.07%, OUT is not doing good in the industry: 80.00% 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 74.52% is in line compared to the rest of the industry. OUT outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of OUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 14.12% | ||
| GM | 74.52% |
OM growth 3Y10.75%
OM growth 5Y-2.09%
PM growth 3Y198.47%
PM growth 5Y11.93%
GM growth 3Y0.26%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OUT is destroying value.
OUT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OUT has more shares outstanding
OUT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.31, we must say that OUT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.31, OUT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
The Debt to FCF ratio of OUT is 12.29, which is on the high side as it means it would take OUT, 12.29 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OUT (12.29) is comparable to the rest of the industry.
OUT has a Debt/Equity ratio of 3.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.69, OUT is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Altman-Z | 0.31 |
ROIC/WACC0.59
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.61 indicates that OUT may have some problems paying its short term obligations.
OUT has a Current ratio (0.61) which is comparable to the rest of the industry.
OUT has a Quick Ratio of 0.61. 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 (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
OUT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.35%, which is quite impressive.
Measured over the past years, OUT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.35% on average per year.
Looking at the last year, OUT shows a decrease in Revenue. The Revenue has decreased by -1.10% in the last year.
Measured over the past years, OUT shows a small growth in Revenue. The Revenue has been growing by 0.54% on average per year.
EPS 1Y (TTM)32.35%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.01%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-4.36%
3.2 Future
The Earnings Per Share is expected to grow by 18.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y33.06%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue Next Year-1.25%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.35, which indicates a rather expensive current valuation of OUT.
Compared to the rest of the industry, the Price/Earnings ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 83.33% of the companies listed in the same industry.
OUT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.69, the valuation of OUT can be described as rather expensive.
90.00% of the companies in the same industry are more expensive than OUT, based on the Price/Forward Earnings ratio.
OUT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.35 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
OUT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OUT is cheaper than 93.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OUT is valued cheaper than 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
OUT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of OUT may justify a higher PE ratio.
A more expensive valuation may be justified as OUT's earnings are expected to grow with 18.22% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.45%, OUT is a good candidate for dividend investing.
OUT's Dividend Yield is rather good when compared to the industry average which is at 5.55. OUT pays more dividend than 96.67% 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 | 7.45% |
5.2 History
The dividend of OUT decreases each year by -3.24%.
OUT has paid a dividend for at least 10 years, which is a reliable track record.
OUT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.24%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
OUT pays out 81.64% of its income as dividend. This is not a sustainable payout ratio.
DP81.64%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
15.88
+0.15 (+0.95%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.3%
Inst Owner Change8.05%
Ins Owners2.04%
Ins Owner Change8.23%
Market Cap2.65B
Analysts75
Price Target18.85 (18.7%)
Short Float %13.42%
Short Ratio12.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.45% |
Yearly Dividend1.27
Dividend Growth(5Y)-3.24%
DP81.64%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.22%
Min EPS beat(2)-52.23%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-12.24%
Min EPS beat(4)-52.23%
Max EPS beat(4)17.74%
EPS beat(8)3
Avg EPS beat(8)-18.43%
EPS beat(12)4
Avg EPS beat(12)-17.5%
EPS beat(16)8
Avg EPS beat(16)16.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-0.38%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.38%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)6
Avg Revenue beat(16)-0.25%
PT rev (1m)-5.94%
PT rev (3m)-10.95%
EPS NQ rev (1m)2.17%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-7.15%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.35 | ||
| Fwd PE | 17.69 | ||
| P/S | 1.46 | ||
| P/FCF | 12.87 | ||
| P/OCF | 8.78 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)0.68
EY4.28%
EPS(NY)0.9
Fwd EY5.65%
FCF(TTM)1.23
FCFY7.77%
OCF(TTM)1.81
OCFY11.39%
SpS10.85
BVpS4.11
TBVpS-11.75
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 37.28% | ||
| ROCE | 5.94% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 10.94% | ||
| OM | 15.07% | ||
| PM (TTM) | 14.12% | ||
| GM | 74.52% | ||
| FCFM | 11.37% |
ROA(3y)-0.27%
ROA(5y)-0.41%
ROE(3y)-5.86%
ROE(5y)-4.6%
ROIC(3y)4.34%
ROIC(5y)3.27%
ROICexc(3y)4.37%
ROICexc(5y)3.36%
ROICexgc(3y)9.75%
ROICexgc(5y)7.47%
ROCE(3y)5.52%
ROCE(5y)4.17%
ROICexcg growth 3Y25.02%
ROICexcg growth 5Y0.65%
ROICexc growth 3Y22.11%
ROICexc growth 5Y-0.68%
OM growth 3Y10.75%
OM growth 5Y-2.09%
PM growth 3Y198.47%
PM growth 5Y11.93%
GM growth 3Y0.26%
GM growth 5Y1.52%
F-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 61.56% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 1.86 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | 80.51% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.31 |
F-Score8
WACC7.83%
ROIC/WACC0.59
Cap/Depr(3y)144.64%
Cap/Depr(5y)125.53%
Cap/Sales(3y)12.33%
Cap/Sales(5y)11.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.35%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.01%
EPS Next Y33.06%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-4.36%
Revenue Next Year-1.25%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y-2.39%
EBIT growth 3Y19.32%
EBIT growth 5Y-1.56%
EBIT Next Year15.44%
EBIT Next 3Y7.5%
EBIT Next 5YN/A
FCF growth 1Y202.08%
FCF growth 3YN/A
FCF growth 5Y11.44%
OCF growth 1Y24.36%
OCF growth 3Y44.68%
OCF growth 5Y1.56%