129.68 USD
-2.32 (-1.76%)
129.68 USD
0 (0%)
Overall LAMR gets a fundamental rating of 5 out of 10. We evaluated LAMR 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 is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years LAMR has always been profitable.
- In the past 5 years LAMR always reported a positive cash flow from operatings.
1.2 Ratios
- LAMR's Return On Assets of 6.35% is amongst the best of the industry. LAMR outperforms 86.67% of its industry peers.
- LAMR has a Return On Equity of 41.96%. This is amongst the best in the industry. LAMR outperforms 96.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.94%, LAMR belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- 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
- The Profit Margin of LAMR (19.26%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of LAMR has declined.
- LAMR has a Operating Margin (23.91%) which is in line with its industry peers.
- 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
- LAMR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, LAMR has more shares outstanding
- Compared to 5 years ago, LAMR has more shares outstanding
- LAMR has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.68, we must say that LAMR is in the distress zone and has some risk of bankruptcy.
- LAMR has a better Altman-Z score (1.68) than 80.00% of its industry peers.
- The Debt to FCF ratio of LAMR is 4.73, which is a neutral value as it means it would take LAMR, 4.73 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of LAMR (4.73) is better than 96.67% of its industry peers.
- A Debt/Equity ratio of 3.08 is on the high side and indicates that LAMR has dependencies on debt financing.
- The Debt to Equity ratio of LAMR (3.08) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.08 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.86
WACC8.03%
2.3 Liquidity
- LAMR has a Current Ratio of 0.59. 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 Current ratio of 0.59 is on the low side compared to the rest of the industry. LAMR is outperformed by 60.00% of its industry peers.
- 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
- LAMR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.80%.
- LAMR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
- The Revenue has been growing slightly by 3.04% in the past year.
- LAMR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.71% yearly.
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
- LAMR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.91% yearly.
- LAMR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
EPS Next Y69.6%
EPS Next 2Y29.77%
EPS Next 3Y22.91%
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.
- When comparing the Revenue 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 30.44, LAMR can be considered very expensive at the moment.
- 66.67% of the companies in the same industry are more expensive than LAMR, based on the Price/Earnings ratio.
- LAMR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 21.81, the valuation of LAMR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LAMR indicates a somewhat cheap valuation: LAMR is cheaper than 73.33% 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 (24.32), we can say LAMR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LAMR is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
- LAMR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LAMR is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.47 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
- The 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 22.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y29.77%
EPS Next 3Y22.91%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.67%, LAMR is a good candidate for dividend investing.
- LAMR's Dividend Yield is slightly below the industry average, which is at 5.65.
- LAMR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
- On average, the dividend of LAMR grows each year by 8.03%, which is quite nice.
- 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)8.03%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- LAMR pays out 148.41% of its income as dividend. 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 2Y29.77%
EPS Next 3Y22.91%
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 30.44 and the Price/Book (PB) ratio is 12.72.
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 69.6% in the next year.