OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OUT - US69007J3041 - REIT
24.59 USD
-0.43 (-1.72%)
24.59 USD
0 (0%)
OUT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Specialized REITs industry. There are concerns on the financial health of OUT while its profitability can be described as average. OUT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year OUT was profitable.
- In the past year OUT had a positive cash flow from operations.
- In multiple years OUT reported negative net income over the last 5 years.
- In the past 5 years OUT always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.21%, OUT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- With an excellent Return On Equity value of 17.42%, OUT belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
- With a decent Return On Invested Capital value of 4.82%, OUT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for OUT is in line with the industry average of 4.86%.
- The last Return On Invested Capital (4.82%) for OUT is above the 3 year average (4.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 17.42% | ||
| ROIC | 4.82% |
ROA(3y)-0.27%
ROA(5y)-0.41%
ROE(3y)-5.86%
ROE(5y)-4.6%
ROIC(3y)4.34%
ROIC(5y)3.27%
1.3 Margins
- OUT has a Profit Margin (6.37%) which is in line with its industry peers.
- OUT's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 15.81%, OUT is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
- OUT's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 74.02%, OUT is in line with its industry, outperforming 60.00% of the companies in the same industry.
- OUT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.81% | ||
| PM (TTM) | 6.37% | ||
| GM | 74.02% |
OM growth 3Y10.75%
OM growth 5Y-2.09%
PM growth 3Y198.47%
PM growth 5Y11.93%
GM growth 3Y0.26%
GM growth 5Y1.52%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OUT is destroying value.
- The number of shares outstanding for OUT has been increased compared to 1 year ago.
- Compared to 5 years ago, OUT has more shares outstanding
- The debt/assets ratio for OUT has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.53, we must say that OUT is in the distress zone and has some risk of bankruptcy.
- OUT has a Altman-Z score of 0.53. This is in the lower half of the industry: OUT underperforms 70.00% of its industry peers.
- The Debt to FCF ratio of OUT is 12.12, which is on the high side as it means it would take OUT, 12.12 years of fcf income to pay off all of its debts.
- OUT's Debt to FCF ratio of 12.12 is fine compared to the rest of the industry. OUT outperforms 63.33% of its industry peers.
- OUT has a Debt/Equity ratio of 3.90. This is a high value indicating a heavy dependency on external financing.
- OUT's Debt to Equity ratio of 3.90 is on the low side compared to the rest of the industry. OUT is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 12.12 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.6
WACC8.03%
2.3 Liquidity
- OUT has a Current Ratio of 0.79. This is a bad value and indicates that OUT is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of OUT (0.79) is comparable to the rest of the industry.
- A Quick Ratio of 0.79 indicates that OUT may have some problems paying its short term obligations.
- OUT's Quick ratio of 0.79 is in line compared to the rest of the industry. OUT outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- OUT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.61%, which is quite impressive.
- Measured over the past years, OUT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.35% on average per year.
- The Revenue has decreased by -1.48% in the past year.
- Measured over the past years, OUT shows a small growth in Revenue. The Revenue has been growing by 0.54% on average per year.
EPS 1Y (TTM)27.61%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.69%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%3.45%
3.2 Future
- OUT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.30% yearly.
- OUT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.58% yearly.
EPS Next Y56.17%
EPS Next 2Y42.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue Next Year0.16%
Revenue Next 2Y2.04%
Revenue Next 3Y2.33%
Revenue Next 5Y2.58%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 30.36, which means the current valuation is very expensive for OUT.
- Based on the Price/Earnings ratio, OUT is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
- OUT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- OUT is valuated rather expensively with a Price/Forward Earnings ratio of 19.79.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 83.33% of the companies listed in the same industry.
- OUT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OUT is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- 70.00% of the companies in the same industry are more expensive than OUT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.3 | ||
| EV/EBITDA | 14.88 |
4.3 Compensation for Growth
- OUT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- OUT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as OUT's earnings are expected to grow with 27.30% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y42.2%
EPS Next 3Y27.3%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.80%, OUT is a good candidate for dividend investing.
- OUT's Dividend Yield is comparable with the industry average which is at 5.51.
- Compared to an average S&P500 Dividend Yield of 1.81, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
- The dividend of OUT decreases each year by -3.24%.
- OUT has been paying a dividend for at least 10 years, so it has a reliable track record.
- OUT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-3.24%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- OUT pays out 181.72% of its income as dividend. This is not a sustainable payout ratio.
DP181.72%
EPS Next 2Y42.2%
EPS Next 3Y27.3%
OUTFRONT MEDIA INC / OUT FAQ
What is the fundamental rating for OUT stock?
ChartMill assigns a fundamental rating of 5 / 10 to OUT.
Can you provide the valuation status for OUTFRONT MEDIA INC?
ChartMill assigns a valuation rating of 6 / 10 to OUTFRONT MEDIA INC (OUT). This can be considered as Fairly Valued.
How profitable is OUTFRONT MEDIA INC (OUT) stock?
OUTFRONT MEDIA INC (OUT) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for OUT stock?
The Price/Earnings (PE) ratio for OUTFRONT MEDIA INC (OUT) is 30.36 and the Price/Book (PB) ratio is 6.21.
What is the expected EPS growth for OUTFRONT MEDIA INC (OUT) stock?
The Earnings per Share (EPS) of OUTFRONT MEDIA INC (OUT) is expected to grow by 56.17% in the next year.