OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J3041 - REIT - Currency: USD
Overall OUT gets a fundamental rating of 5 out of 10. We evaluated OUT against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of OUT while its profitability can be described as average. OUT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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
The Return On Assets of OUT (4.99%) is better than 73.33% of its industry peers.
OUT has a Return On Equity of 37.28%. This is amongst the best in the industry. OUT outperforms 93.33% of its industry peers.
The Return On Invested Capital of OUT (4.64%) is comparable to the rest of the industry.
OUT had an Average Return On Invested Capital over the past 3 years of 4.34%. This 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
The Profit Margin of OUT (14.12%) is comparable to the rest of the industry.
OUT's Profit Margin has improved in the last couple of years.
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.
OUT has a Gross Margin (74.52%) which is comparable to the rest of the industry.
OUT's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for OUT has been increased compared to 1 year ago.
The number of shares outstanding for OUT has been increased compared to 5 years ago.
The debt/assets ratio for OUT has been reduced compared to a year ago.
2.2 Solvency
OUT has an Altman-Z score of 0.31. This is a bad value and indicates that OUT is not financially healthy and even has some risk of bankruptcy.
OUT has a worse Altman-Z score (0.31) than 83.33% of its industry peers.
OUT has a debt to FCF ratio of 12.29. This is a negative value and a sign of low solvency as OUT would need 12.29 years to pay back of all of its debts.
OUT has a Debt to FCF ratio (12.29) which 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 in line with its industry peers.
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.
Looking at the Quick ratio, with a value of 0.61, OUT is in line with its industry, outperforming 53.33% of the companies in the same 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.
OUT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.35% yearly.
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 17.03% on average per year.
The Revenue is expected to grow by 1.90% on average over the next years.
EPS Next Y34.68%
EPS Next 2Y21.97%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue Next Year-1.03%
Revenue Next 2Y1.16%
Revenue Next 3Y1.9%
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
Based on the Price/Earnings ratio of 23.09, the valuation of OUT can be described as rather expensive.
OUT's Price/Earnings ratio is rather cheap when compared to the industry. OUT is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of OUT to the average of the S&P500 Index (25.82), we can say OUT is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.18, OUT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, OUT is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OUT to the average of the S&P500 Index (21.76), we can say OUT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than OUT, based on the Enterprise Value to EBITDA ratio.
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 | 12.72 | ||
| 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 17.03% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y21.97%
EPS Next 3Y17.03%
5. Dividend
5.1 Amount
OUT has a Yearly Dividend Yield of 7.61%, which is a nice return.
Compared to an average industry Dividend Yield of 5.68, OUT pays a better dividend. On top of this OUT pays more dividend than 96.67% of the companies listed in the same industry.
OUT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
5.2 History
The dividend of OUT decreases each year by -3.24%.
OUT has been paying a dividend for at least 10 years, so it has 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 2Y21.97%
EPS Next 3Y17.03%
15.7
-0.03 (-0.19%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.35%
Inst Owner Change7.29%
Ins Owners1.86%
Ins Owner Change6.26%
Market Cap2.62B
Analysts75
Price Target20.05 (27.71%)
Short Float %13.06%
Short Ratio10.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
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)-5.75%
PT rev (3m)-2.91%
EPS NQ rev (1m)-5.88%
EPS NQ rev (3m)-7.36%
EPS NY rev (1m)6.8%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 17.18 | ||
| P/S | 1.45 | ||
| P/FCF | 12.72 | ||
| P/OCF | 8.68 | ||
| P/B | 3.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.83 |
EPS(TTM)0.68
EY4.33%
EPS(NY)0.91
Fwd EY5.82%
FCF(TTM)1.23
FCFY7.86%
OCF(TTM)1.81
OCFY11.52%
SpS10.86
BVpS4.11
TBVpS-11.75
PEG (NY)0.67
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 Y34.68%
EPS Next 2Y21.97%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-4.36%
Revenue Next Year-1.03%
Revenue Next 2Y1.16%
Revenue Next 3Y1.9%
Revenue Next 5YN/A
EBIT growth 1Y-2.39%
EBIT growth 3Y19.32%
EBIT growth 5Y-1.56%
EBIT Next Year17.85%
EBIT Next 3Y8.65%
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%