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Lamar Advertising Co (LAMR)
:LAMR
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Lamar Advertising
(NASDAQ:LAMR)
77Outperform
Positive Factors
Digital Advertising
Increasing digital boards and tuck-in acquisitions represent tailwinds in future.
Market Leadership
Lamar's key catalyst is leveraging its strong balance sheet to drive expansion in a fragmented market.
Mergers and Acquisitions
Liquidity remains robust, supporting an active M&A pipeline and digital conversions.
Negative Factors
National Advertising
National advertisements have been declining in six out of the last seven quarters, raising concerns about potential structural issues.
Revenue Growth
Weaker core revenue growth is expected due to ongoing challenges with national advertisements.
Valuation Concerns
The company's trading is at the higher end of its historical valuation range, suggesting that revisions in estimates are necessary to maintain value.
Lamar Advertising (LAMR) vs. S&P 500 (SPY)
Market Cap
$12.21B
Dividend Yield4.71%
Average Volume (3M)854.46K
Price to Earnings (P/E)29.2
Beta (1Y)1.11
Revenue Growth3.58%
EPS Growth-15.47%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength68
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.35
Shares Outstanding87,969,955
10 Day Avg. Volume823,521
30 Day Avg. Volume854,455
Financial Highlights & Ratios
PEG Ratio1.77
Price to Book (P/B)11.90
Price to Sales (P/S)0.00
P/FCF Ratio16.04
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit9.33
Enterprise Value/Ebitda3.41
Forecast
1Y Price Target
$131.60Price Target Upside10.39% Upside
Rating ConsensusHold
Number of Analyst Covering5
Lamar Advertising Business Overview & Revenue Model
Company DescriptionLamar Advertising Company is a leading outdoor advertising firm in the United States. Founded in 1902 and headquartered in Baton Rouge, Louisiana, Lamar specializes in billboard advertising, offering a wide array of formats including traditional billboards, digital billboards, and transit advertising displays. It operates one of the largest networks of outdoor advertising structures across North America, providing advertisers with access to prime locations and high-visibility spaces for their marketing campaigns.
How the Company Makes MoneyLamar Advertising primarily generates revenue through the leasing of advertising space on its extensive network of outdoor advertising structures. The company leases billboard space to businesses and advertisers on a short-term or long-term basis, offering both traditional and digital advertising options. Key revenue streams include rental income from billboard leases and fees for digital display advertising, which allows for dynamic content changes. Lamar's business model relies on maintaining a broad and strategically located inventory of billboard structures, which attracts national, regional, and local advertisers. Significant partnerships with municipalities and property owners enable Lamar to secure prime locations for its advertising displays, further enhancing its income potential. Additionally, the company's investment in digital technology has expanded its offerings, allowing for more flexible and engaging advertising solutions that command premium pricing.
Lamar Advertising Financial Statement Overview
Summary
Lamar Advertising is in a strong financial position with sustainable revenue growth and profitability. The balance sheet reflects reduced leverage, improving financial stability. Cash flow metrics are solid, indicating robust cash generation capabilities. While the company faces potential risks related to high liabilities, it maintains healthy profitability and operational efficiency.Income Statement
Lamar Advertising demonstrates robust revenue growth with a steady increase from $1.57 billion in 2020 to $2.21 billion TTM, indicating strong market presence. The gross profit margin remains healthy, consistently above 65%, reflecting efficient cost management. Net profit margin improved, showing operational efficiency gains. However, EBIT margin fluctuated, suggesting potential volatility in core operations.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio decreased significantly from 3.4 in 2020 to 1.1 TTM, indicating a healthier leverage position. The equity ratio has remained stable, suggesting balanced asset financing. Return on Equity (ROE) is strong, enhancing shareholder value. However, the overall liabilities remain high, posing potential financial risk.78
Positive
Cash Flow
Operating cash flow shows consistent growth, supporting the company’s ability to generate cash from operations. The free cash flow growth rate is positive, enhancing financial flexibility. However, the high operating cash flow to net income ratio suggests reliance on non-operational cash flow components, which could indicate earnings quality issues.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.21B | 2.21B | 2.11B | 2.03B | 1.79B | 1.57B | Gross Profit |
| 1.48B | 1.48B | 1.41B | 1.36B | 1.21B | 1.01B | EBIT |
| 598.67M | 532.04M | 675.43M | 578.00M | 521.19M | 410.11M | EBITDA |
| 1.07B | 1.00B | 974.55M | 916.04M | 793.75M | 652.38M | Net Income Common Stockholders |
| 422.40M | 361.87M | 495.76M | 438.65M | 388.09M | 243.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 36.41M | 49.46M | 44.60M | 52.62M | 99.79M | 121.57M | Total Assets |
| 6.53B | 6.59B | 6.56B | 6.48B | 6.05B | 5.79B | Total Debt |
| 4.66B | 4.56B | 4.64B | 1.26B | 4.23B | 4.10B | Net Debt |
| 4.62B | 4.51B | 4.60B | 1.21B | 4.13B | 3.97B | Total Liabilities |
| 5.34B | 5.54B | 5.35B | 5.28B | 4.83B | 4.59B | Stockholders Equity |
| 1.18B | 1.05B | 1.22B | 1.20B | 1.22B | 1.20B |
| Cash Flow | Free Cash Flow | ||||
| 765.10M | 748.33M | 605.34M | 614.53M | 608.33M | 507.60M | Operating Cash Flow |
| 890.79M | 873.61M | 783.61M | 781.61M | 734.42M | 569.87M | Investing Cash Flow |
| -54.46M | -164.91M | -310.12M | 619.07M | 461.76M | -96.89M | Financing Cash Flow |
| -836.32M | -703.42M | -481.63M | -209.32M | -294.52M | -377.92M |
Lamar Advertising Technical Analysis
Positive
119.21
Price Trends
113.14
Positive
117.89
Positive
121.15
Negative
Market Momentum
1.53
Negative
60.19
Neutral
70.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAMR, the sentiment is Positive. The current price of 119.21 is above the 20-day moving average (MA) of 114.80, above the 50-day MA of 113.14, and below the 200-day MA of 121.15, indicating a neutral trend. The MACD of 1.53 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAMR.
Lamar Advertising Risk Analysis
Lamar Advertising disclosed 33 risk factors in its most recent earnings report. Lamar Advertising reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lamar Advertising Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.21B | 29.16 | 38.18% | 4.71% | 3.58% | -15.47% | |
74 Outperform | $25.31B | 30.85 | -14.67% | 1.74% | -0.29% | 47.83% | |
70 Outperform | $13.06B | 16.86 | 18.57% | 6.39% | 6.14% | 4.09% | |
69 Neutral | $2.73B | 10.79 | 39.80% | 5.55% | -1.10% | ― | |
69 Neutral | $29.68B | 245.21 | -35.81% | 2.85% | 11.04% | -37.29% | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
50 Neutral | $44.84B | 33.81 | -198.54% | 6.12% | -12.57% | -375.80% |
* Real Estate Sector Average
Performance Comparison
LAMR
Lamar Advertising
119.21
4.27
3.71%
CCI
Crown Castle
102.98
8.37
8.85%
IRM
Iron Mountain
101.06
21.31
26.72%
SBAC
SBA Communications
235.51
40.85
20.99%
GLPI
Gaming and Leisure
47.51
3.83
8.77%
OUT
Outfront Media
16.35
2.69
19.69%
Lamar Advertising Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 0.68%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Lamar's continued revenue growth and strong performance in digital and programmatic segments, supported by robust M&A activity and a strong balance sheet. However, there were some challenges, including a slight decline in adjusted EBITDA and national revenue weakness. The company's confidence in its strategic position was reflected in its share repurchase program.Q1-2025 Updates
Positive Updates
16th Consecutive Quarter of Revenue Growth
Lamar reported its 16th consecutive quarter of acquisition-adjusted revenue growth with an increase of 1.1%.
Strong Performance in Digital and Programmatic Segments
Programmatic revenue grew nearly 30%, while digital billboard revenue was up 4%, accounting for approximately 30% of total billboard revenue.
Robust M&A Activity
Lamar closed 10 deals in Q1 for about $22 million and expects to exceed $150 million in spend for the year, with year-to-date acquisitions already over $70 million.
Share Repurchase Program
The company repurchased $150 million worth of stock at an average price of $108 per share, reflecting confidence in business strength.
Solid AFFO Growth
Adjusted funds from operations (AFFO) increased by 3.8%, with diluted AFFO per share growing 3.9% to $1.60.
Strong Balance Sheet
Lamar ended the quarter with total leverage at 2.85 times net debt to EBITDA, with ample liquidity and investment capacity over $1 billion.
Negative Updates
Slight Decline in Adjusted EBITDA
Adjusted EBITDA was $210.2 million, declining 80 basis points from the previous year.
Challenges in National Revenue
National revenue was slightly down year-over-year, attributed to changes in buying habits of large customers.
Weakness in Specific Categories
Gaming and restaurants showed relative weakness, with gaming revenue down 9% and restaurant revenue down 4%.
Company Guidance
During the call, Lamar provided guidance indicating a positive outlook for fiscal year 2025, despite some challenges. The company achieved a 1.1% increase in acquisition-adjusted revenue for the first quarter, marking the 16th consecutive quarter of such growth. Programmatic revenue grew nearly 30%, while digital billboard revenue was up 4%, accounting for about 30% of total billboard revenue. On the acquisition front, Lamar closed 10 deals worth approximately $22 million in Q1, with a year-to-date spend surpassing $70 million and expectations to exceed $150 million by year-end. Additionally, the company repurchased $150 million of stock at an average price of just over $108 per share. Lamar maintained its full-year guidance for AFFO per share between $8.13 and $8.28 and expects total leverage to remain at or below 3 times net debt to EBITDA. The company's liquidity and capital access remain robust, with over $490 million in total liquidity at the end of Q1.Lamar Advertising Corporate Events
Shareholder Meetings
Lamar Advertising Holds 2025 Annual Stockholders Meeting
Neutral
May 19, 2025
On May 15, 2025, Lamar Advertising Company held its 2025 Annual Meeting of Stockholders, where stockholders elected ten directors to serve until the 2026 Annual Meeting. Additionally, the stockholders ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.
The most recent analyst rating on (LAMR) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.
Spark’s Take on LAMR Stock
According to Spark, TipRanks’ AI Analyst, LAMR is a Outperform.
Lamar Advertising’s stock score reflects its strong financial performance, particularly in revenue growth and cash flow management, despite high leverage. Technical indicators show moderate upward momentum, and the valuation appears high relative to the market. The positive outlook from the earnings call, with strategic growth in digital and programmatic sectors, further supports the stock’s potential. Investors should remain cautious of leverage risks and valuation metrics.
To see Spark’s full report on LAMR stock, click here.
Stock BuybackDividends
Lamar Advertising Announces Dividend and Stock Buyback
Positive
May 15, 2025
On May 15, 2025, Lamar Advertising Company announced a quarterly cash dividend of $1.55 per share, payable on June 30, 2025, to stockholders of record on June 16, 2025. Additionally, the company completed $150 million in stock repurchases and increased its stock repurchase program by $150 million, bringing the total available for repurchase to $250 million, with the program set to expire on March 31, 2026.
The most recent analyst rating on (LAMR) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.
Spark’s Take on LAMR Stock
According to Spark, TipRanks’ AI Analyst, LAMR is a Outperform.
Lamar Advertising’s overall stock score reflects its strong financial performance, particularly in revenue growth and cash flow management, despite high leverage. Technical indicators show moderate upward momentum, and the valuation appears high relative to the market. The positive outlook from the earnings call, with strategic growth in digital and programmatic sectors, further supports the stock’s potential. Investors should remain cautious of leverage risks and valuation metrics.
To see Spark’s full report on LAMR stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.