OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
USA - NYSE:OUT - US69007J3041 - REIT
18.4 USD
+0.17 (+0.93%)
18.35 USD
-0.05 (-0.27%)
We assign a fundamental rating of 4 out of 10 to OUT. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OUT was profitable.
OUT had a positive operating cash flow in the past year.
In multiple years OUT reported negative net income over the last 5 years.
OUT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OUT has a Return On Assets (1.92%) which is in line with its industry peers.
OUT has a Return On Equity of 14.98%. This is amongst the best in the industry. OUT outperforms 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, OUT is in line with its industry, 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 4.79%.
The 3 year average ROIC (4.34%) for OUT is below the current ROIC(4.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 14.98% | ||
| ROIC | 4.56% |
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
Looking at the Profit Margin, with a value of 5.50%, OUT is in line with its industry, outperforming 43.33% of the companies in the same industry.
OUT's Profit Margin has improved in the last couple of years.
The Operating Margin of OUT (14.91%) is worse than 76.67% of its industry peers.
OUT's Operating Margin has declined in the last couple of years.
OUT has a Gross Margin (74.15%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.91% | ||
| PM (TTM) | 5.5% | ||
| GM | 74.15% |
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.
Compared to 1 year ago, OUT has more shares outstanding
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.
Looking at the Altman-Z score, with a value of 0.35, OUT is doing worse than 80.00% of the companies in the same industry.
OUT has a debt to FCF ratio of 12.83. This is a negative value and a sign of low solvency as OUT would need 12.83 years to pay back of all of its debts.
OUT has a Debt to FCF ratio (12.83) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.88 is on the high side and indicates that OUT has dependencies on debt financing.
OUT has a Debt to Equity ratio of 3.88. This is in the lower half of the industry: OUT underperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.88 | ||
| Debt/FCF | 12.83 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.59
WACC7.72%
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.
Looking at the Current ratio, with a value of 0.61, OUT is in line with its industry, outperforming 43.33% of the companies in the same 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.
The Quick ratio of OUT (0.61) 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 46.34%, which is quite impressive.
OUT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.35% yearly.
The Revenue has decreased by -2.49% in the past 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)46.34%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%30.72%
Revenue 1Y (TTM)-2.49%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-3.58%
3.2 Future
Based on estimates for the next years, OUT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.93% on average per year.
The Revenue is expected to grow by 2.10% on average over the next years.
EPS Next Y42.2%
EPS Next 2Y25.97%
EPS Next 3Y22.93%
EPS Next 5YN/A
Revenue Next Year-1.03%
Revenue Next 2Y0.86%
Revenue Next 3Y1.67%
Revenue Next 5Y2.1%
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
With a Price/Earnings ratio of 25.21, OUT can be considered very expensive at the moment.
76.67% of the companies in the same industry are more expensive than OUT, based on the Price/Earnings ratio.
OUT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.77.
OUT is valuated rather expensively with a Price/Forward Earnings ratio of 18.87.
86.67% of the companies in the same industry are more expensive than OUT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OUT to the average of the S&P500 Index (23.23), we can say OUT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 18.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OUT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
90.00% of the companies in the same industry are more expensive than OUT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 12.89 |
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's earnings are expected to grow with 22.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y25.97%
EPS Next 3Y22.93%
5. Dividend
5.1 Amount
OUT has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 5.76, OUT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
212.06% of the earnings are spent on dividend by OUT. This is not a sustainable payout ratio.
DP212.06%
EPS Next 2Y25.97%
EPS Next 3Y22.93%
18.4
+0.17 (+0.93%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change-0.48%
Ins Owners2.01%
Ins Owner Change-0.03%
Market Cap3.08B
Revenue(TTM)1.80B
Net Income(TTM)98.70M
Analysts76.36
Price Target20.08 (9.13%)
Short Float %11.92%
Short Ratio11.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend1.27
Dividend Growth(5Y)-3.24%
DP212.06%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.51%
Min EPS beat(2)-52.23%
Max EPS beat(2)1.2%
EPS beat(4)3
Avg EPS beat(4)-7.87%
Min EPS beat(4)-52.23%
Max EPS beat(4)17.74%
EPS beat(8)4
Avg EPS beat(8)-15.77%
EPS beat(12)4
Avg EPS beat(12)-18.53%
EPS beat(16)8
Avg EPS beat(16)12.65%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.38%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)2
Avg Revenue beat(12)-1.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.47%
PT rev (1m)0%
PT rev (3m)6.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.82%
EPS NY rev (1m)3.8%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 18.87 | ||
| P/S | 1.71 | ||
| P/FCF | 15.45 | ||
| P/OCF | 10.31 | ||
| P/B | 4.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.89 |
EPS(TTM)0.73
EY3.97%
EPS(NY)0.97
Fwd EY5.3%
FCF(TTM)1.19
FCFY6.47%
OCF(TTM)1.78
OCFY9.7%
SpS10.74
BVpS3.94
TBVpS-11.86
PEG (NY)0.6
PEG (5Y)N/A
Graham Number8.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 14.98% | ||
| ROCE | 5.86% | ||
| ROIC | 4.56% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 10.74% | ||
| OM | 14.91% | ||
| PM (TTM) | 5.5% | ||
| GM | 74.15% | ||
| FCFM | 11.09% |
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%
ROICexgc growth 3Y25.02%
ROICexgc 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-Score3
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.88 | ||
| Debt/FCF | 12.83 | ||
| Debt/EBITDA | 5.95 | ||
| Cap/Depr | 61.4% | ||
| Cap/Sales | 5.52% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 69.52% | ||
| Profit Quality | 201.82% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.35 |
F-Score3
WACC7.72%
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)46.34%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%30.72%
EPS Next Y42.2%
EPS Next 2Y25.97%
EPS Next 3Y22.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.49%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-3.58%
Revenue Next Year-1.03%
Revenue Next 2Y0.86%
Revenue Next 3Y1.67%
Revenue Next 5Y2.1%
EBIT growth 1Y-7.56%
EBIT growth 3Y19.32%
EBIT growth 5Y-1.56%
EBIT Next Year15.74%
EBIT Next 3Y8.97%
EBIT Next 5Y6.68%
FCF growth 1Y1219.21%
FCF growth 3YN/A
FCF growth 5Y11.44%
OCF growth 1Y23.93%
OCF growth 3Y44.68%
OCF growth 5Y1.56%