OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J3041 - REIT - Currency: USD
Taking everything into account, OUT scores 4 out of 10 in our fundamental rating. OUT was compared to 30 industry peers in the Specialized REITs industry. OUT has a medium profitability rating, but doesn't score so well on its financial health evaluation. OUT has a decent growth rate and is not valued too expensively.
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.
OUT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.99%, OUT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
The Return On Equity of OUT (37.28%) is better than 96.67% of its industry peers.
The Return On Invested Capital of OUT (4.64%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for OUT is in line with the industry average of 5.19%.
The 3 year average ROIC (4.34%) for OUT is below the current ROIC(4.64%), indicating increased profibility in the last year.
| 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
The Profit Margin of OUT (14.12%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OUT has grown nicely.
OUT has a Operating Margin of 15.07%. This is amonst the worse of the industry: OUT underperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of OUT has declined.
The Gross Margin of OUT (74.52%) is better than 63.33% 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
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.
Compared to 5 years ago, OUT has more shares outstanding
The debt/assets ratio for OUT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.35, we must say that OUT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.35, OUT is not doing good in the industry: 80.00% 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.
OUT has a Debt to FCF ratio of 12.29. This is comparable to the rest of the industry: OUT outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 3.69 is on the high side and indicates that OUT has dependencies on debt financing.
OUT has a worse Debt to Equity ratio (3.69) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.68
WACC6.82%
2.3 Liquidity
OUT has a Current 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.
The Current ratio of OUT (0.61) is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that OUT may have some problems paying its short term obligations.
OUT has a Quick ratio of 0.61. This is comparable to the rest of the industry: OUT outperforms 46.67% of its industry peers.
| 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.
The earnings per share for OUT have been decreasing by -10.35% on average. This is quite bad
Looking at the last year, OUT shows a decrease in Revenue. The Revenue has decreased by -1.10% in the last year.
OUT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.54% yearly.
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
Based on estimates for the next years, OUT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.22% on average per year.
Based on estimates for the next years, OUT will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.32, OUT can be considered very expensive at the moment.
OUT's Price/Earnings ratio is a bit cheaper when compared to the industry. OUT is cheaper than 73.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of OUT to the average of the S&P500 Index (26.82), we can say OUT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.18, the valuation of OUT can be described as rather expensive.
86.67% of the companies in the same industry are more expensive than OUT, based on the Price/Forward Earnings ratio.
OUT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OUT is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.96 | ||
| EV/EBITDA | 12.53 |
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.
OUT has a very decent profitability rating, which 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)0.77
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.85%, OUT is a good candidate for dividend investing.
OUT's Dividend Yield is rather good when compared to the industry average which is at 5.91. OUT pays more dividend than 83.33% of the companies in the same industry.
OUT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
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%
17.22
-0.31 (-1.77%)
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 Change0.03%
Ins Owners2.04%
Ins Owner Change6.35%
Market Cap2.88B
Analysts75
Price Target18.85 (9.47%)
Short Float %12.69%
Short Ratio12.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.85% |
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)0%
PT rev (3m)-6.89%
EPS NQ rev (1m)-3.26%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 19.18 | ||
| P/S | 1.59 | ||
| P/FCF | 13.96 | ||
| P/OCF | 9.52 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.53 |
EPS(TTM)0.68
EY3.95%
EPS(NY)0.9
Fwd EY5.21%
FCF(TTM)1.23
FCFY7.16%
OCF(TTM)1.81
OCFY10.5%
SpS10.85
BVpS4.11
TBVpS-11.75
PEG (NY)0.77
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 | 0.35 |
F-Score8
WACC6.82%
ROIC/WACC0.68
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%