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Lamar Advertising
(NASDAQ:LAMR)
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Rating:72Outperform
Price Target:
$167.00
â–²(11.05% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong operating profitability/cash conversion and a bullish earnings update with raised AFFO guidance and higher dividend expectations. These positives are tempered by meaningful leverage risk on the balance sheet and weaker near-term technical momentum, while valuation is mixed (good yield but a higher P/E).
Positive Factors
Digital and programmatic growth
Rapid digital and programmatic growth is strengthening Lamar’s inventory productivity and expanding its ability to serve advertisers with flexible, measurable campaigns. Rising digital mix and programmatic adoption can support better utilization, broader demand, and durable revenue growth beyond traditional static billboards.
Negative Factors
High leverage and rate sensitivity
Elevated leverage increases Lamar’s exposure to refinancing conditions and interest-rate changes, particularly because the company operates as a REIT. Although leverage can enhance shareholder returns, a thin equity base reduces financial flexibility and may constrain capital allocation during weaker operating periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital and programmatic growth
Rapid digital and programmatic growth is strengthening Lamar’s inventory productivity and expanding its ability to serve advertisers with flexible, measurable campaigns. Rising digital mix and programmatic adoption can support better utilization, broader demand, and durable revenue growth beyond traditional static billboards.
Read all positive factors
Lamar Advertising Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows how revenue is generated across different segments, highlighting which areas drive growth and profitability, and indicating potential shifts in business focus or market demand.
Shows how revenue is generated across different segments, highlighting which areas drive growth and profitability, and indicating potential shifts in business focus or market demand.
Data provided by:
The Fly
The FlyLamar Advertising (LAMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.91B
Dividend Yield4.53%
Average Volume (3M)504.67K
Price to Earnings (P/E)26.7
Beta (1Y)0.80
Revenue Growth4.39%
EPS Growth27.37%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)5.49
Shares Outstanding87,129,600
10 Day Avg. Volume472,800
30 Day Avg. Volume504,667
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)12.71
Price to Sales (P/S)5.67
P/FCF Ratio17.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$162.20Price Target Upside7.86% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)5.92
Revenue Forecast (FY)$2.40B
Lamar Advertising Business Overview & Revenue Model
Company Description
Established in 1902, Lamar Advertising (Nasdaq: LAMR) operates as a major force in the North American outdoor advertising landscape, boasting a portfolio of over 352,000 displays across the United States and Canada. Lamar furnishes advertisers wit...
How the Company Makes Money
Lamar primarily makes money by selling advertising space (and time/rotation) on its out-of-home display network. The largest revenue driver is billboard advertising, where advertisers pay for campaigns that run on specific structures in defined ge...
Lamar Advertising Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed broad, multi-channel momentum: revenue, adjusted EBITDA, digital growth, programmatic expansion, airport acceleration, and raised AFFO guidance and dividend, supported by a strong balance sheet and active M&A. Offsetting items include higher-than-expected expense growth (driven by variable costs), some category softness (real estate/amusements), and timing uncertainty for additional cost-savings from software initiatives. Overall the positives—record margins, double-digit digital growth, raised guidance, and healthy liquidity—materially outweigh the manageable headwinds.Positive Updates
Revenue and EBITDA Growth
Acquisition-adjusted consolidated revenue grew 6.1% in Q2 2026; adjusted EBITDA rose 7.3% on an acquisition-adjusted basis and was $303.4M (up 9.0% vs. $278.4M in Q2 2025). Adjusted EBITDA margin expanded 110 bps to a record 49.2%.
Negative Updates
Expense Pressure Above Initial Plan
Acquisition-adjusted consolidated expenses rose 5.1% in Q2 (about 150 bps higher than anticipated), driven by variable costs (revenue share leases and sales commissions). Management now expects full-year expense growth closer to ~4% (above prior ~3% framework).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EBITDA Growth
Acquisition-adjusted consolidated revenue grew 6.1% in Q2 2026; adjusted EBITDA rose 7.3% on an acquisition-adjusted basis and was $303.4M (up 9.0% vs. $278.4M in Q2 2025). Adjusted EBITDA margin expanded 110 bps to a record 49.2%.
Read all positive updates
Company Guidance
Management raised full‑year diluted AFFO guidance to $8.75–$8.90 per share (a $0.22 midpoint increase, implying roughly 7% AFFO/share growth vs. 2025), with cash interest assumed at $155M (no short‑term rate change), maintenance CapEx budgeted at $65M and total CapEx ≈$186M, and cash taxes ≈$12M; they recommended a $0.05 quarterly dividend increase to $1.65 (Board approval pending) and expect at least $6.50 of regular dividends for the year (4.1% yield at yesterday’s close) with a likely year‑end special dividend to distribute 100% of taxable income. On the balance sheet they expect total leverage to hover around 3.0x net debt/EBITDA (secured <1x), reflecting ~ $3.5B consolidated debt, a weighted‑average interest rate of 4.5% and 4‑year weighted maturity, with $720M liquidity (cash $68M, revolver $652M) and $250M AR securitization outstanding; management retains >$1B deployment capacity and expects to exceed $200M of cash M&A spend for 2026.Lamar Advertising Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
45
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.33B | 2.27B | 2.21B | 2.11B | 2.03B | 1.79B |
| Gross Profit | 946.12M | 866.53M | 1.48B | 1.41B | 1.36B | 1.21B |
| EBITDA | 1.03B | 1.10B | 1.00B | 974.55M | 933.06M | 775.02M |
| Net Income | 556.08M | 587.15M | 361.87M | 495.76M | 438.65M | 388.09M |
Balance Sheet | ||||||
| Total Assets | 7.00B | 6.93B | 6.59B | 6.56B | 6.48B | 6.05B |
| Cash, Cash Equivalents and Short-Term Investments | 67.95M | 64.81M | 49.46M | 44.60M | 52.62M | 99.79M |
| Total Debt | 4.98B | 6.18B | 4.56B | 4.64B | 4.57B | 4.23B |
| Total Liabilities | 6.00B | 5.91B | 5.54B | 5.35B | 5.28B | 4.83B |
| Stockholders Equity | 995.47M | 1.01B | 1.05B | 1.22B | 1.20B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 754.36M | 736.01M | 748.33M | 649.52M | 614.53M | 608.33M |
| Operating Cash Flow | 906.62M | 864.05M | 873.61M | 783.61M | 781.61M | 734.42M |
| Investing Cash Flow | -373.40M | -244.63M | -164.91M | -310.12M | -619.07M | -461.76M |
| Financing Cash Flow | -520.83M | -604.32M | -703.42M | -481.63M | -209.32M | -294.52M |
Lamar Advertising Technical Analysis
Neutral
150.38
Price Trends
152.80
Negative
150.57
Negative
138.69
Positive
Market Momentum
-1.85
Positive
39.63
Neutral
4.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAMR, the sentiment is Neutral. The current price of 150.38 is above the 20-day moving average (MA) of 147.99, below the 50-day MA of 152.80, and above the 200-day MA of 138.69, indicating a neutral trend. The MACD of -1.85 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 4.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (65)
LAMR
Lamar Advertising
146.81
27.05
22.59%
OUT
Outfront Media
27.98
9.99
55.56%
Lamar Advertising Corporate Events
DividendsFinancial Disclosures
Lamar Advertising Declares Quarterly Cash Dividend for 2026
Positive
Sep 1, 2026
On September 1, 2026, Lamar Advertising Company announced that its board of directors declared a quarterly cash dividend of $1.65 per share, payable on September 30, 2026, to stockholders of record of its Class A and Class B common stock as of Sep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.