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Outfront Media Inc (OUT)
NYSE:OUT
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Outfront Media
(NYSE:OUT)
69Neutral
Positive Factors
Dividend Yield
The company's cash dividend rate provides a 7.2% yield, which is attractive for investors seeking income.
Revenue Growth
The distinctiveness of out-of-home advertising helps support revenue growth by presenting unique messaging and providing flexibility.
Negative Factors
Contract Loss
The loss of the MTA billboard contract and a billboard contract in LA presents a significant headwind to billboard revenue growth.
Macro Environment
There is a reduced visibility given the current macro backdrop.
Revenue Expectations
Q1 total Billboard & Transit revenue was below both the guide and Street estimates.
Outfront Media (OUT) vs. S&P 500 (SPY)
Market Cap
$2.76B
Dividend Yield5.55%
Average Volume (3M)1.67M
Price to Earnings (P/E)10.8
Beta (1Y)1.63
Revenue Growth-1.10%
EPS GrowthN/A
CountryUS
Employees2,149
SectorReal Estate
Sector Strength67
IndustryREIT - Specialty
Share Statistics
EPS (TTM)-0.14
Shares Outstanding167,073,750
10 Day Avg. Volume1,743,750
30 Day Avg. Volume1,668,890
Financial Highlights & Ratios
PEG Ratio1.13
Price to Book (P/B)3.16
Price to Sales (P/S)0.00
P/FCF Ratio11.59
Enterprise Value/Market Cap2.35
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit7.65
Enterprise Value/Ebitda5.49
Forecast
1Y Price Target
$18.50Price Target Upside12.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Outfront Media Business Overview & Revenue Model
Company DescriptionOutfront Media Inc. leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its technology platform, Outfront Media Inc. will fundamentally change the ways advertisers engage audiences on-the-go.
How the Company Makes MoneyOutfront Media generates revenue primarily through leasing advertising space on its extensive network of out-of-home assets, which include traditional billboards, digital displays, and transit advertising formats. The company's key revenue streams are derived from selling advertising space to local, regional, and national advertisers across various industries. Outfront Media's strategic partnerships with transit authorities and municipalities enable it to secure prime advertising locations, particularly in high-visibility areas such as major transportation hubs and city centers. Additionally, the company invests in digital technology to enhance its advertising offerings, allowing for dynamic and targeted advertising campaigns that command premium pricing, thereby contributing to its earnings.
Outfront Media Financial Statement Overview
Summary
Outfront Media shows a recovery trajectory in its financial performance, with significant improvements in profitability and cash flow efficiency. However, high leverage remains a concern, requiring careful management to ensure long-term financial health and stability. The company is on a path to improvement with consistent revenue and profit growth.Income Statement
Outfront Media's income statement shows an improving trend with a gross profit margin of 48.2% and a net profit margin of 14.1% for the latest year. The EBIT and EBITDA margins have rebounded to 23.2% after a previous negative year. Revenue growth rate is modest at 0.6%, indicating stability with some improvement over the previous year.69
Positive
Balance Sheet
The balance sheet reveals a challenging financial structure with a high debt-to-equity ratio of 2.36, indicating significant leverage. The return on equity stands at 39.8%, suggesting efficient use of equity, despite low equity ratio of 12.4%. The company has reduced its total debt, improving overall financial stability.55
Neutral
Cash Flow
Cash flow analysis shows strong operational cash flow at 115.9% of net income, with free cash flow growing by 32% year-on-year. The free cash flow to net income ratio is 85.6%, demonstrating efficient cash management and a positive outlook for liquidity.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.83B | 1.82B | 1.77B | 1.46B | 1.24B | Gross Profit |
| 881.90M | 852.30M | 860.70M | 679.90M | 525.50M | EBIT |
| 425.50M | -258.40M | 287.70M | 168.30M | 72.50M | EBITDA |
| 576.80M | -105.70M | 438.20M | 307.40M | 218.40M | Net Income Common Stockholders |
| 258.20M | -430.40M | 147.90M | 35.60M | -59.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 46.90M | 36.00M | 40.40M | 424.80M | 710.40M | Total Assets |
| 5.22B | 5.58B | 5.99B | 5.92B | 5.90B | Total Debt |
| 4.01B | 4.34B | 4.21B | 4.12B | 4.13B | Net Debt |
| 3.97B | 4.30B | 4.17B | 3.69B | 3.42B | Total Liabilities |
| 4.43B | 4.85B | 4.76B | 4.53B | 4.51B | Stockholders Equity |
| 768.80M | 726.80M | 1.23B | 1.38B | 1.36B |
| Cash Flow | Free Cash Flow | |||
| 221.10M | 167.40M | 157.50M | 8.50M | 53.50M | Operating Cash Flow |
| 299.20M | 254.20M | 254.10M | 98.80M | 130.60M | Investing Cash Flow |
| 207.50M | -107.50M | -449.50M | -224.00M | -53.20M | Financing Cash Flow |
| -495.40M | -151.50M | -188.00M | -162.20M | 573.00M |
Outfront Media Technical Analysis
Positive
16.49
Price Trends
15.60
Positive
16.84
Negative
17.03
Negative
Market Momentum
0.25
Negative
59.99
Neutral
81.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OUT, the sentiment is Positive. The current price of 16.49 is above the 20-day moving average (MA) of 15.48, above the 50-day MA of 15.60, and below the 200-day MA of 17.03, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OUT.
Outfront Media Risk Analysis
Outfront Media disclosed 40 risk factors in its most recent earnings report. Outfront Media 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
Outfront Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Performance Comparison
OUT
Outfront Media
16.49
2.83
20.72%
LAMR
Lamar Advertising
119.87
4.93
4.29%
EPR
EPR Properties
54.16
15.39
39.70%
Outfront Media Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 7.15%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted growth in transit and digital revenues, along with improvements in billboard OIBDA margin. However, challenges included a decline in billboard and local revenues, increased SG&A, and corporate expenses. Despite positive trends in some areas, the overall sentiment is balanced due to the presence of significant lowlights.Q1-2025 Updates
Positive Updates
Transit Revenue Growth
Transit revenues grew 2.6% with strong growth in the New York MTA segment, which increased by about 10% during the quarter.
Digital Revenue Surge
Digital billboard revenues were up 5.4%, and combined digital revenue grew almost 7% in the quarter, representing nearly 33% of total organic revenues, up from about 31% last year.
Improved Billboard OIBDA Margin
Billboard adjusted OIBDA rose about $2 million or 2%, with margins increasing by 100 basis points year-over-year to 31.9%.
National Revenue Growth
National revenues grew 4% during the first quarter, driven by improved creative efforts on advertising sales.
Negative Updates
Billboard Revenue Decline
Billboard revenues were down 1%, impacted by a 2 percentage point headwind from the exit of a large marginally profitable New York billboard contract.
Local Revenue Decrease
Local revenues declined by 3% year-on-year during the quarter, with growth in New York City transit being offset by weakness in billboard.
Increased SG&A Expenses
SG&A expenses rose about $2 million or 3.2% due to higher compensation-related expenses and a higher allowance for bad debt.
Corporate Expense Increase
Corporate expenses rose by about $5 million, mainly due to management severance payments and executive search fees.
Company Guidance
During the OUTFRONT Media First Quarter 2025 earnings call, the company provided detailed guidance on its financial performance and strategic priorities. Organic revenues grew slightly, aligning with prior guidance, while adjusted OIBDA was $64 million, and AFFO was $24 million. Billboard revenues declined by 1% due to a major New York contract exit, while transit revenues grew 2.6%, driven by a 10% increase in New York MTA revenues. Digital billboard revenues rose by 5.4%, and digital transit revenues increased by nearly 11%, contributing to a 7% growth in combined digital revenue, which now represents 33% of total organic revenues. National revenues increased by 4%, although local revenues fell by 3%. The company also maintained its full-year AFFO growth expectation in the mid-single-digit range, despite an uncertain economic environment. Looking ahead, OUTFRONT expects second-quarter revenues to mirror those of the first quarter, with minimal impact on OIBDA and AFFO from recent contract exits.Outfront Media Corporate Events
DividendsFinancial Disclosures
Outfront Media Declares Quarterly Cash Dividend
Neutral
May 8, 2025
On May 8, 2025, OUTFRONT Media announced a quarterly cash dividend of $0.30 per share, payable on June 30, 2025. The company reported first-quarter 2025 revenues of $390.7 million, a 4.4% decrease from the previous year, with a net loss of $20.6 million. Despite the uncertain economic climate, the interim CEO expressed confidence in the company’s short and long-term business health.
Spark’s Take on OUT Stock
According to Spark, TipRanks’ AI Analyst, OUT is a Neutral.
Outfront Media’s stock is rated at 61, indicating moderate potential. The company shows financial improvement with better profit margins and cash flow, although high leverage is a concern. Technically, the stock is in a bearish phase, with key indicators pointing downwards. Valuation metrics are favorable, suggesting the stock is undervalued with a high dividend yield. Recent earnings call points to positive revenue trends, despite some challenges.
To see Spark’s full report on OUT stock, click here.
Executive/Board ChangesShareholder Meetings
Outfront Media Board Member Joseph Wender Retires
Neutral
Apr 17, 2025
On April 16, 2025, Joseph H. Wender, a board member of Outfront Media Inc., announced his retirement and decision not to seek reelection at the company’s 2025 Annual Meeting of Stockholders. His departure is not due to any disagreements with the company, ensuring a smooth transition without impacting the company’s operations or policies.
Spark’s Take on OUT Stock
According to Spark, TipRanks’ AI Analyst, OUT is a Neutral.
Outfront Media shows potential with improvements in financial performance and positive earnings call sentiment. However, high leverage and current bearish technical indicators present risks. The reasonable valuation and strong dividend yield provide some downside protection.
To see Spark’s full report on OUT 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.