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Lamar Advertising Company (LAMR)
NASDAQ:LAMR
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Lamar Advertising
(NASDAQ:LAMR)
72Outperform
Positive Factors
Local Advertising
Local advertisements continue to show strength, which could help offset some of the challenges faced with national advertisement revenues.
Revenue Growth
The company's plan to increase capital deployment into mergers and acquisitions is expected to contribute positively to revenue growth.
Strategic Expansion
Increasing digital boards and tuck-in acquisitions represent tailwinds in future.
Negative Factors
National Advertising Challenges
National advertisements have been declining in most recent quarters, and there is no sign of recovery soon, which could disadvantage the company.
Revenue Outlook
Lowering AFFO estimates on lower revenue and elevated operating expense growth.
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
$11.90B
Dividend Yield4.87%
Average Volume (3M)782.67K
Price to Earnings (P/E)33.0
Beta (1Y)1.14
Revenue Growth3.58%
EPS Growth-15.47%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength81
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.35
Shares Outstanding88,107,820
10 Day Avg. Volume613,706
30 Day Avg. Volume782,669
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.47
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$131.60Price Target Upside14.59% Upside
Rating ConsensusHold
Number of Analyst Covering5
Lamar Advertising Business Overview & Revenue Model
Company DescriptionFounded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 352,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with approximately 3,800 displays.
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 solid revenue growth and efficient cash flow management. While the company is highly leveraged, which is typical for REITs, it maintains a strong return on equity. Investors should monitor net profitability and leverage levels as potential areas of concern. The company's effective operational strategies support its continued success in the REITs industry.Income Statement
Lamar Advertising shows a strong revenue growth with a 4.56% increase from 2023 to 2024. The Gross Profit Margin remains robust at 100% due to the nature of REITs' financial reporting. However, Net Profit Margin has decreased from 23.49% in 2023 to 16.39% in 2024, indicating some pressure on net profitability. The EBIT and EBITDA margins are solid, showing effective cost management and operational efficiency.―
Balance Sheet
The company has a high Debt-to-Equity Ratio of 1.52 for 2024, which is common in REITs but indicates significant leverage. The Return on Equity is relatively strong at 34.51%, showing efficient use of equity to generate profits. The Equity Ratio is at 15.91%, suggesting a relatively low proportion of equity financing, which could be a risk if interest rates rise.70
Cash Flow
Lamar Advertising demonstrates strong cash flow performance with substantial Operating Cash Flow. The Free Cash Flow Growth Rate is 44.34% from 2023 to 2024, indicating improved cash generation capabilities. Both Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are favorable, highlighting healthy cash flow relative to earnings.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.21B | 2.11B | 2.03B | 1.79B | 1.57B | Gross Profit |
| 1.48B | 1.41B | 1.36B | 1.21B | 1.01B | EBIT |
| 532.04M | 675.43M | 578.00M | 521.19M | 410.11M | EBITDA |
| 1.00B | 974.55M | 916.04M | 793.75M | 652.38M | Net Income Common Stockholders |
| 361.87M | 495.76M | 438.65M | 388.09M | 243.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 49.46M | 44.60M | 52.62M | 99.79M | 121.57M | Total Assets |
| 6.59B | 6.56B | 6.48B | 6.05B | 5.79B | Total Debt |
| 1.60B | 4.64B | 1.26B | 4.23B | 4.10B | Net Debt |
| 1.55B | 4.60B | 1.21B | 4.13B | 3.97B | Total Liabilities |
| 5.54B | 5.35B | 5.28B | 4.83B | 4.59B | Stockholders Equity |
| 1.05B | 1.22B | 1.20B | 1.22B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| 748.33M | 605.34M | 614.53M | 608.33M | 507.60M | Operating Cash Flow |
| 873.61M | 783.61M | 781.61M | 734.42M | 569.87M | Investing Cash Flow |
| -164.91M | -310.12M | 619.07M | 461.76M | -96.89M | Financing Cash Flow |
| -703.42M | -481.63M | -209.32M | -294.52M | -377.92M |
Lamar Advertising Technical Analysis
Neutral
114.84
Price Trends
113.54
Positive
118.17
Negative
121.07
Negative
Market Momentum
0.99
Negative
52.82
Neutral
62.84
Neutral
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 114.84 is above the 20-day moving average (MA) of 112.78, above the 50-day MA of 113.54, and below the 200-day MA of 121.07, indicating a neutral trend. The MACD of 0.99 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 62.84 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $26.09B | 32.03 | -14.67% | 1.69% | -0.29% | 47.83% | |
72 Outperform | $11.90B | 32.97 | 31.97% | 4.87% | 3.58% | -15.47% | |
70 Outperform | $12.79B | 16.41 | 18.57% | 6.55% | 6.14% | 4.09% | |
69 Neutral | $28.25B | 233.39 | -35.81% | 2.94% | 11.04% | -37.29% | |
64 Neutral | $2.60B | 10.10 | 34.53% | 5.86% | 0.57% | ― | |
60 Neutral | $2.81B | 11.31 | 0.21% | 8508.38% | 6.19% | -15.39% | |
55 Neutral | $46.53B | 33.81 | -198.54% | 6.06% | -12.57% | -375.80% |
* Real Estate Sector Average
Performance Comparison
LAMR
Lamar Advertising
114.84
0.76
0.67%
CCI
Crown Castle
103.28
9.72
10.39%
IRM
Iron Mountain
97.07
19.59
25.28%
SBAC
SBA Communications
236.62
42.84
22.11%
GLPI
Gaming and Leisure
46.42
4.82
11.59%
OUT
Outfront Media
15.00
0.96
6.84%
Lamar Advertising Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -3.01%|
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.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.