127.46 USD
-1.12 (-0.87%)
LAMR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. While LAMR is still in line with the averages on profitability rating, there are concerns on its financial health. LAMR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- LAMR had positive earnings in the past year.
- LAMR had a positive operating cash flow in the past year.
- In the past 5 years LAMR has always been profitable.
- Each year in the past 5 years LAMR had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 6.35%, LAMR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.96%, LAMR belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
- LAMR has a better Return On Invested Capital (6.94%) than 86.67% of its industry peers.
- LAMR had an Average Return On Invested Capital over the past 3 years of 7.98%. This is above the industry average of 4.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.35% | ||
| ROE | 41.96% | ||
| ROIC | 6.94% |
ROA(3y)6.6%
ROA(5y)6.08%
ROE(3y)37.3%
ROE(5y)32.79%
ROIC(3y)7.98%
ROIC(5y)7.52%
1.3 Margins
- LAMR's Profit Margin of 19.26% is in line compared to the rest of the industry. LAMR outperforms 56.67% of its industry peers.
- LAMR's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 23.91%, LAMR is in line with its industry, outperforming 50.00% of the companies in the same industry.
- LAMR's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 81.69%, LAMR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of LAMR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.91% | ||
| PM (TTM) | 19.26% | ||
| GM | 81.69% |
OM growth 3Y-6.38%
OM growth 5Y-3.92%
PM growth 3Y-8.94%
PM growth 5Y-5.03%
GM growth 3Y-1%
GM growth 5Y-1.65%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAMR is destroying value.
- The number of shares outstanding for LAMR has been increased compared to 1 year ago.
- Compared to 5 years ago, LAMR has more shares outstanding
- The debt/assets ratio for LAMR has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.67, we must say that LAMR is in the distress zone and has some risk of bankruptcy.
- LAMR's Altman-Z score of 1.67 is fine compared to the rest of the industry. LAMR outperforms 80.00% of its industry peers.
- LAMR has a debt to FCF ratio of 4.73. This is a neutral value as LAMR would need 4.73 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.73, LAMR belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
- LAMR has a Debt/Equity ratio of 3.08. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 3.08, LAMR is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.87
WACC7.99%
2.3 Liquidity
- A Current Ratio of 0.59 indicates that LAMR may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.59, LAMR is doing worse than 60.00% of the companies in the same industry.
- A Quick Ratio of 0.59 indicates that LAMR may have some problems paying its short term obligations.
- The Quick ratio of LAMR (0.59) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The earnings per share for LAMR have decreased strongly by -14.80% in the last year.
- LAMR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
- Looking at the last year, LAMR shows a small growth in Revenue. The Revenue has grown by 3.04% in the last year.
- The Revenue has been growing slightly by 4.71% on average over the past years.
EPS 1Y (TTM)-14.8%
EPS 3Y-2.6%
EPS 5Y-0.56%
EPS Q2Q%-2.78%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y7.28%
Revenue growth 5Y4.71%
Sales Q2Q%3.79%
3.2 Future
- Based on estimates for the next years, LAMR will show a very strong growth in Earnings Per Share. The EPS will grow by 22.95% on average per year.
- The Revenue is expected to grow by 3.68% on average over the next years.
EPS Next Y70.29%
EPS Next 2Y29.81%
EPS Next 3Y22.95%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y3.51%
Revenue Next 3Y3.68%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 29.92 indicates a quite expensive valuation of LAMR.
- Compared to the rest of the industry, the Price/Earnings ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 66.67% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. LAMR is around the same levels.
- LAMR is valuated rather expensively with a Price/Forward Earnings ratio of 21.43.
- Based on the Price/Forward Earnings ratio, LAMR is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
- LAMR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.92 | ||
| Fwd PE | 21.43 |
4.2 Price Multiples
- LAMR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LAMR is cheaper than 76.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 76.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 16.11 |
4.3 Compensation for Growth
- LAMR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- LAMR has a very decent profitability rating, which may justify a higher PE ratio.
- LAMR's earnings are expected to grow with 22.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y29.81%
EPS Next 3Y22.95%
5. Dividend
5.1 Amount
- LAMR has a Yearly Dividend Yield of 4.78%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.51, LAMR has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, LAMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.78% |
5.2 History
- The dividend of LAMR is nicely growing with an annual growth rate of 8.03%!
- LAMR has paid a dividend for at least 10 years, which is a reliable track record.
- LAMR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.03%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 148.41% of the earnings are spent on dividend by LAMR. This is not a sustainable payout ratio.
- LAMR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP148.41%
EPS Next 2Y29.81%
EPS Next 3Y22.95%
LAMAR ADVERTISING CO-A / LAMR FAQ
What is the ChartMill fundamental rating of LAMAR ADVERTISING CO-A (LAMR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to LAMR.
What is the valuation status for LAMR stock?
ChartMill assigns a valuation rating of 5 / 10 to LAMAR ADVERTISING CO-A (LAMR). This can be considered as Fairly Valued.
How profitable is LAMAR ADVERTISING CO-A (LAMR) stock?
LAMAR ADVERTISING CO-A (LAMR) has a profitability rating of 6 / 10.
What is the valuation of LAMAR ADVERTISING CO-A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LAMAR ADVERTISING CO-A (LAMR) is 29.92 and the Price/Book (PB) ratio is 12.5.
What is the expected EPS growth for LAMAR ADVERTISING CO-A (LAMR) stock?
The Earnings per Share (EPS) of LAMAR ADVERTISING CO-A (LAMR) is expected to grow by 70.29% in the next year.