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. While OUT is still in line with the averages on profitability rating, there are concerns on its financial health. OUT has a correct valuation and a medium 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.
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
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 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
Looking at the Profit Margin, with a value of 14.12%, OUT is in line with its industry, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Profit Margin of OUT has grown nicely.
The Operating Margin of OUT (15.07%) is worse than 80.00% of its industry peers.
In the last couple of years the Operating Margin of OUT has declined.
OUT has a Gross Margin of 74.52%. This is comparable to the rest of the industry: OUT outperforms 60.00% of its industry peers.
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
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.
The number of shares outstanding for OUT has been increased compared to 5 years ago.
Compared to 1 year ago, OUT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.36, we must say that OUT is in the distress zone and has some risk of bankruptcy.
OUT has a worse Altman-Z score (0.36) than 86.67% 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.
OUT's Debt to Equity ratio of 3.69 is on the low side compared to the rest of the industry. OUT is outperformed by 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.59
WACC7.92%
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 53.33% 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.
With a Quick ratio value of 0.61, OUT perfoms like the industry average, 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.
The Revenue has decreased by -1.10% in the past 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
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.
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
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.
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
A Price/Earnings ratio of 26.57 indicates a quite expensive valuation of OUT.
Based on the Price/Earnings ratio, OUT is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.04, OUT is valued at the same level.
With a Price/Forward Earnings ratio of 20.13, OUT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.64, OUT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 20.13 |
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 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 12.68 |
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.
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)0.8
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.22%
5. Dividend
5.1 Amount
OUT has a Yearly Dividend Yield of 6.59%, which is a nice return.
Compared to an average industry Dividend Yield of 5.62, OUT pays a better dividend. On top of this OUT pays more dividend than 86.67% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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%
18.07
+0.17 (+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 Change0%
Ins Owners2.04%
Ins Owner Change6.35%
Market Cap3.02B
Analysts75
Price Target18.85 (4.32%)
Short Float %12.62%
Short Ratio11.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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)-11.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.84%
EPS NY rev (1m)0%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 20.13 | ||
| P/S | 1.67 | ||
| P/FCF | 14.65 | ||
| P/OCF | 9.99 | ||
| P/B | 4.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.68 |
EPS(TTM)0.68
EY3.76%
EPS(NY)0.9
Fwd EY4.97%
FCF(TTM)1.23
FCFY6.83%
OCF(TTM)1.81
OCFY10.01%
SpS10.85
BVpS4.11
TBVpS-11.75
PEG (NY)0.8
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 | 0.36 |
F-Score8
WACC7.92%
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%