LAMAR ADVERTISING CO-A (LAMR) Stock Fundamental Analysis
NASDAQ:LAMR - Nasdaq - US5128161099 - REIT - Currency: USD
We assign a fundamental rating of 5 out of 10 to LAMR. LAMR was compared to 29 industry peers in the Specialized REITs industry. While LAMR has a great profitability rating, there are quite some concerns on its financial health. LAMR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LAMR had positive earnings in the past year.
In the past year LAMR had a positive cash flow from operations.
Of the past 5 years LAMR 4 years were profitable.
Of the past 5 years LAMR 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LAMR (7.85%) is better than 92.86% of its industry peers.
LAMR has a better Return On Equity (42.22%) than 96.43% of its industry peers.
LAMR has a better Return On Invested Capital (9.31%) than 89.29% of its industry peers.
LAMR had an Average Return On Invested Capital over the past 3 years of 8.13%. This is above the industry average of 5.41%.
The last Return On Invested Capital (9.31%) for LAMR is above the 3 year average (8.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 42.22% | ||
| ROIC | 9.31% |
ROA(3y)6.91%
ROA(5y)6.24%
ROE(3y)36.42%
ROE(5y)32.19%
ROIC(3y)8.13%
ROIC(5y)7.62%
1.3 Margins
Looking at the Profit Margin, with a value of 23.44%, LAMR is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
LAMR's Profit Margin has improved in the last couple of years.
The Operating Margin of LAMR (31.21%) is worse than 67.86% of its industry peers.
LAMR's Operating Margin has improved in the last couple of years.
The Gross Margin of LAMR (81.12%) is better than 71.43% of its industry peers.
LAMR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.21% | ||
| PM (TTM) | 23.44% | ||
| GM | 81.12% |
OM growth 3Y7.47%
OM growth 5Y2%
PM growth 3Y14.86%
PM growth 5Y4.6%
GM growth 3Y-2.38%
GM growth 5Y4.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LAMR is still creating some value.
LAMR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 1.85 indicates that LAMR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of LAMR (1.85) is better than 85.71% of its industry peers.
LAMR has a debt to FCF ratio of 4.53. This is a neutral value as LAMR would need 4.53 years to pay back of all of its debts.
The Debt to FCF ratio of LAMR (4.53) is better than 92.86% of its industry peers.
A Debt/Equity ratio of 2.48 is on the high side and indicates that LAMR has dependencies on debt financing.
The Debt to Equity ratio of LAMR (2.48) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 4.53 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.15
WACC8.1%
2.3 Liquidity
LAMR has a Current Ratio of 0.56. This is a bad value and indicates that LAMR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.56, LAMR is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
LAMR has a Quick Ratio of 0.56. This is a bad value and indicates that LAMR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAMR's Quick ratio of 0.56 is on the low side compared to the rest of the industry. LAMR is outperformed by 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
LAMR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.56%, which is quite good.
The Earnings Per Share has been growing by 9.64% on average over the past years. This is quite good.
EPS 1Y (TTM)18.56%
EPS 3Y14.6%
EPS 5Y9.64%
EPS Q2Q%51.37%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.26%
3.2 Future
Based on estimates for the next years, LAMR will show a small growth in Earnings Per Share. The EPS will grow by 5.05% on average per year.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y1.38%
EPS Next 2Y5.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y4.66%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.20, LAMR is valued on the expensive side.
82.14% of the companies in the same industry are more expensive than LAMR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, LAMR is valued a bit cheaper.
LAMR is valuated rather expensively with a Price/Forward Earnings ratio of 20.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LAMR to the average of the S&P500 Index (22.68), we can say LAMR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LAMR is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LAMR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of LAMR may justify a higher PE ratio.
PEG (NY)15.37
PEG (5Y)2.2
EPS Next 2Y5.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LAMR has a Yearly Dividend Yield of 5.07%, which is a nice return.
Compared to an average industry Dividend Yield of 4.50, LAMR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, LAMR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
5.2 History
The dividend of LAMR has a limited annual growth rate of 2.28%.
LAMR has been paying a dividend for at least 10 years, so it has a reliable track record.
LAMR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.28%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
105.05% 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.
DP105.05%
EPS Next 2Y5.05%
EPS Next 3YN/A
121.91
-0.4 (-0.33%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.45%
Inst Owner Change2.85%
Ins Owners0.78%
Ins Owner Change-5.9%
Market Cap12.48B
Analysts72.31
Price Target136.63 (12.07%)
Short Float %2.88%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.07% |
Yearly Dividend5.01
Dividend Growth(5Y)2.28%
DP105.05%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.43%
Min EPS beat(2)-4.07%
Max EPS beat(2)-2.79%
EPS beat(4)1
Avg EPS beat(4)-2.33%
Min EPS beat(4)-8.39%
Max EPS beat(4)5.92%
EPS beat(8)1
Avg EPS beat(8)-10.5%
EPS beat(12)5
Avg EPS beat(12)-4.79%
EPS beat(16)8
Avg EPS beat(16)0.4%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-6.86%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-6.86%
Max Revenue beat(4)-0.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.05%
Revenue beat(12)3
Avg Revenue beat(12)-0.61%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)-0.04%
PT rev (3m)3.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 20.91 | ||
| P/S | 5.72 | ||
| P/FCF | 17.33 | ||
| P/OCF | 14.71 | ||
| P/B | 10.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.08 |
EPS(TTM)5.75
EY4.72%
EPS(NY)5.83
Fwd EY4.78%
FCF(TTM)7.04
FCFY5.77%
OCF(TTM)8.29
OCFY6.8%
SpS21.33
BVpS11.84
TBVpS-18.65
PEG (NY)15.37
PEG (5Y)2.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 42.22% | ||
| ROCE | 11.79% | ||
| ROIC | 9.31% | ||
| ROICexc | 9.36% | ||
| ROICexgc | 20.47% | ||
| OM | 31.21% | ||
| PM (TTM) | 23.44% | ||
| GM | 81.12% | ||
| FCFM | 32.98% |
ROA(3y)6.91%
ROA(5y)6.24%
ROE(3y)36.42%
ROE(5y)32.19%
ROIC(3y)8.13%
ROIC(5y)7.62%
ROICexc(3y)8.23%
ROICexc(5y)7.71%
ROICexgc(3y)18.76%
ROICexgc(5y)17.47%
ROCE(3y)10.29%
ROCE(5y)9.64%
ROICexcg growth 3Y13.84%
ROICexcg growth 5Y-7.43%
ROICexc growth 3Y13.8%
ROICexc growth 5Y0.07%
OM growth 3Y7.47%
OM growth 5Y2%
PM growth 3Y14.86%
PM growth 5Y4.6%
GM growth 3Y-2.38%
GM growth 5Y4.54%
F-Score7
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.48 | ||
| Debt/FCF | 4.53 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 43.06% | ||
| Cap/Sales | 5.88% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 86.63% | ||
| Profit Quality | 140.72% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.85 |
F-Score7
WACC8.1%
ROIC/WACC1.15
Cap/Depr(3y)51.69%
Cap/Depr(5y)47.25%
Cap/Sales(3y)7.91%
Cap/Sales(5y)7.15%
Profit Quality(3y)139.76%
Profit Quality(5y)152%
High Growth Momentum
Growth
EPS 1Y (TTM)18.56%
EPS 3Y14.6%
EPS 5Y9.64%
EPS Q2Q%51.37%
EPS Next Y1.38%
EPS Next 2Y5.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.26%
Revenue Next Year5.06%
Revenue Next 2Y4.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.54%
EBIT growth 3Y18.65%
EBIT growth 5Y7.45%
EBIT Next Year52.04%
EBIT Next 3Y19.46%
EBIT Next 5YN/A
FCF growth 1Y17.69%
FCF growth 3Y6.05%
FCF growth 5Y6.24%
OCF growth 1Y8.33%
OCF growth 3Y11.2%
OCF growth 5Y6.77%