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Lamar Advertising
(NASDAQ:LAMR)
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Rating:74Outperform
Price Target:
$165.00
â–²(22.19% Upside)
Action:Reiterated
Date:05/20/26
LAMR scores well on durable profitability and strong cash flow, reinforced by a positive earnings update and affirmed AFFO/dividend outlook. The score is tempered by balance-sheet leverage risk and a relatively rich valuation (high P/E), even as technical trends remain supportive.
Positive Factors
Strong cash generation and AFFO growth
Operating cash flow consistently exceeds net income and free cash flow has risen into the TTM period, supporting dividends, maintenance capex, and debt service. This durable cash conversion quality underpins dividend coverage and funds reinvestment without reliance on equity raises.
Negative Factors
High leverage and refinancing sensitivity
Elevated debt relative to equity and sizable upcoming maturities concentrate refinancing risk and reduce flexibility in a higher-rate environment. Even with healthy interest coverage today, high leverage amplifies earnings sensitivity to weaker ad demand or rising financing costs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and AFFO growth
Operating cash flow consistently exceeds net income and free cash flow has risen into the TTM period, supporting dividends, maintenance capex, and debt service. This durable cash conversion quality underpins dividend coverage and funds reinvestment without reliance on equity raises.
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
$15.84B
Dividend Yield4.9%
Average Volume (3M)631.19K
Price to Earnings (P/E)28.7
Beta (1Y)0.83
Revenue Growth3.36%
EPS Growth31.50%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)5.43
Shares Outstanding87,055,016
10 Day Avg. Volume598,470
30 Day Avg. Volume631,190
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 Cap1.28
Enterprise Value/Revenue8.86
Enterprise Value/Gross Profit28.09
Enterprise Value/Ebitda19.94
Forecast
1Y Price Target
$154.75Price Target Upside14.60% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.82
Revenue Forecast (FY)$2.37B
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 to customers for placement on its out-of-home assets, generating revenue from contracts that reserve space for a specific period (often structured as short-term or multi-period arrangements depend...
Lamar Advertising Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: revenue, adjusted EBITDA, and AFFO all exceeded expectations with notable strength in national/programmatic sales, digital, airports, and several regions. Balance sheet metrics and liquidity remain healthy, and management is actively deploying capital via M&A while maintaining dividend guidance. Weaknesses were limited to a few verticals and one region (Gulf Coast), some month-to-month cadence variability, and potential sustainability questions around the sources of margin expansion (e.g., one-time portfolio changes and past acquisition lapping). On balance, positives materially outweigh the negatives.Positive Updates
Top- and Bottom-Line Beat with Strong Forward Bookings
Q1 results exceeded internal expectations on revenue, adjusted EBITDA and AFFO; company is pacing to the top end or above full-year AFFO per share guidance and may revisit guidance on the August call.
Negative Updates
Regional Weakness — Gulf Coast Slower
Gulf Coast region showed relative weakness with revenues up only 1% in Q1 versus stronger mid-single digit growth in other regions (Midwest +5.7%, Atlantic +4.8%).
Read all updates
Q1-2026 Updates
Positive
Negative
Top- and Bottom-Line Beat with Strong Forward Bookings
Q1 results exceeded internal expectations on revenue, adjusted EBITDA and AFFO; company is pacing to the top end or above full-year AFFO per share guidance and may revisit guidance on the August call.
Read all positive updates
Company Guidance
Lamar affirmed full‑year AFFO guidance of $8.50–$8.70 per share, which assumes cash interest of $154M (no change in short‑term rates), maintenance CapEx of $64M and total CapEx of about $186M, cash taxes of roughly $11.5M, and a regular dividend of at least $6.40 per share (Q2 proposed at $1.60, implying a ~4.5% yield at yesterday’s price with potential to increase later in 2026). Management expects total leverage to hover around 3.0x net debt/EBITDA (secured leverage <1.0x) for the year, while retaining investment capacity well over $1B; the balance sheet at quarter end showed ~$3.5B total consolidated debt at a 4.5% weighted average rate and 4.3‑year weighted maturity, LTM interest coverage of 7x, and liquidity just over $700M (cash $39.3M + $662.2M revolver availability) with the AR securitization $242.1M outstanding at quarter end (subsequently fully drawn to $250M) and $40M revolver outstanding after a $40M repayment—management said it may revisit guidance on the August call if current outperformance continues.Lamar Advertising Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.29B | 2.27B | 2.21B | 2.11B | 2.03B | 1.79B |
| Gross Profit | 721.90M | 866.53M | 1.48B | 1.41B | 1.36B | 1.21B |
| EBITDA | 1.02B | 1.10B | 1.00B | 974.55M | 933.06M | 775.02M |
| Net Income | 549.68M | 587.15M | 361.87M | 495.76M | 438.65M | 388.09M |
Balance Sheet | ||||||
| Total Assets | 6.91B | 6.93B | 6.59B | 6.56B | 6.48B | 6.05B |
| Cash, Cash Equivalents and Short-Term Investments | 39.27M | 64.81M | 49.46M | 44.60M | 52.62M | 99.79M |
| Total Debt | 5.19B | 6.18B | 4.56B | 4.64B | 4.57B | 4.23B |
| Total Liabilities | 5.93B | 5.91B | 5.54B | 5.35B | 5.28B | 4.83B |
| Stockholders Equity | 969.79M | 1.01B | 1.05B | 1.22B | 1.20B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 735.95M | 736.01M | 748.33M | 649.52M | 614.53M | 608.33M |
| Operating Cash Flow | 883.69M | 864.05M | 873.61M | 783.61M | 781.61M | 734.42M |
| Investing Cash Flow | -389.45M | -244.63M | -164.91M | -310.12M | -619.07M | -461.76M |
| Financing Cash Flow | -491.22M | -604.32M | -703.42M | -481.63M | -209.32M | -294.52M |
Lamar Advertising Technical Analysis
Positive
135.04
Price Trends
145.56
Positive
137.65
Positive
129.68
Positive
Market Momentum
2.26
Negative
68.05
Neutral
82.61
Negative
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 135.04 is below the 20-day moving average (MA) of 150.84, below the 50-day MA of 145.56, and above the 200-day MA of 129.68, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 68.05 is Neutral, neither overbought nor oversold. The STOCH value of 82.61 is Negative, 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
UnderperformOutperform
Sector (65)
LAMR
Lamar Advertising
156.10
40.55
35.10%
EPR
EPR Properties
59.70
4.88
8.91%
OUT
Outfront Media
33.24
17.70
113.94%
Lamar Advertising Corporate Events
Business Operations and StrategyShareholder Meetings
Lamar Shareholders Approve Expanded Equity Incentive Plans
Positive
May 19, 2026
At its Annual Meeting of Stockholders held on May 14, 2026, Lamar Advertising shareholders approved amendments to two key equity plans, raising the share reserve under the 1996 Equity Incentive Plan by 2,000,000 Class A shares to 19,500,000 effect...
Dividends
Lamar Advertising Declares Quarterly Dividend, Reaffirms 2026 Payouts
Positive
May 14, 2026
On May 14, 2026, Lamar Advertising Company announced that its board of directors had declared a quarterly cash dividend of $1.60 per share on its Class A and Class B common stock. The dividend is scheduled to be paid on June 30, 2026 to stockholde...
Business Operations and StrategyStock BuybackDividends
Lamar Advertising Extends Buyback Programs, Declares Quarterly Dividend
Positive
Feb 26, 2026
On February 26, 2026, Lamar Advertising announced its board had declared a quarterly cash dividend of $1.60 per share, payable on March 31, 2026, to shareholders of record as of March 16. The move underscored the company’s ongoing capital re...
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.