OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OUT - US69007J3041 - REIT
24.17 USD
+0.14 (+0.58%)
24.17 USD
0 (0%)
Taking everything into account, OUT scores 4 out of 10 in our fundamental rating. OUT was compared to 30 industry peers in the Specialized REITs industry. While OUT is still in line with the averages on profitability rating, there are concerns on its financial health. OUT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OUT was profitable.
OUT had a positive operating cash flow in the past year.
In multiple years OUT reported negative net income over the last 5 years.
Each year in the past 5 years OUT had a positive operating cash flow.
1.2 Ratios
OUT has a Return On Assets (2.21%) which is in line with its industry peers.
The Return On Equity of OUT (17.42%) is better than 86.67% of its industry peers.
OUT has a Return On Invested Capital of 4.82%. This is in the better half of the industry: OUT outperforms 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OUT is in line with the industry average of 4.78%.
The 3 year average ROIC (4.34%) for OUT is below the current ROIC(4.82%), indicating increased profibility in the last year.
| 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.
OUT has a Operating Margin of 15.81%. This is in the lower half of the industry: OUT underperforms 76.67% of its industry peers.
In the last couple of years the Operating Margin of OUT has declined.
OUT's Gross Margin of 74.02% is in line compared to the rest of the industry. OUT outperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of OUT has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OUT is destroying value.
Compared to 1 year ago, OUT has more shares outstanding
The number of shares outstanding for OUT has been increased compared to 5 years ago.
OUT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.51, we must say that OUT is in the distress zone and has some risk of bankruptcy.
OUT's Altman-Z score of 0.51 is on the low side compared to the rest of the industry. OUT is outperformed by 73.33% 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.
With a decent Debt to FCF ratio value of 12.12, OUT is doing good in the industry, outperforming 63.33% of the companies in the same industry.
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 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 12.12 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.62
WACC7.77%
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.
OUT has a Current ratio of 0.79. This is comparable to the rest of the industry: OUT outperforms 53.33% of its industry peers.
A Quick Ratio of 0.79 indicates that OUT may have some problems paying its short term obligations.
OUT has a Quick ratio (0.79) which is comparable to the rest of the industry.
| 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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.84, which means the current valuation is very expensive for OUT.
The rest of the industry has a similar Price/Earnings ratio as OUT.
Compared to an average S&P500 Price/Earnings ratio of 26.77, OUT is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.46, the valuation of OUT can be described as rather expensive.
OUT's Price/Forward Earnings ratio is rather cheap when compared to the industry. OUT is cheaper than 86.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, OUT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
OUT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OUT is cheaper than 80.00% of the companies in the same industry.
OUT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OUT is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.97 | ||
| EV/EBITDA | 14.56 |
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.
The decent profitability rating of OUT may justify a higher PE ratio.
OUT's earnings are expected to grow with 27.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y42.2%
EPS Next 3Y27.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.99%, OUT is a good candidate for dividend investing.
OUT's Dividend Yield is comparable with the industry average which is at 5.73.
Compared to an average S&P500 Dividend Yield of 2.00, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
5.2 History
The dividend of OUT decreases each year by -3.24%.
OUT has paid a dividend for at least 10 years, which is 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
181.72% of the earnings are spent on dividend by OUT. This is not a sustainable payout ratio.
DP181.72%
EPS Next 2Y42.2%
EPS Next 3Y27.3%
24.17
+0.14 (+0.58%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.24%
Inst Owner Change1.82%
Ins Owners1.99%
Ins Owner Change-1.35%
Market Cap4.04B
Revenue(TTM)1.81B
Net Income(TTM)115.40M
Analysts80
Price Target25.33 (4.8%)
Short Float %3.15%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
Yearly Dividend1.27
Dividend Growth(5Y)-3.24%
DP181.72%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.33%
Min EPS beat(2)1.2%
Max EPS beat(2)19.45%
EPS beat(4)3
Avg EPS beat(4)-7.45%
Min EPS beat(4)-52.23%
Max EPS beat(4)19.45%
EPS beat(8)5
Avg EPS beat(8)-9.16%
EPS beat(12)5
Avg EPS beat(12)-16.27%
EPS beat(16)8
Avg EPS beat(16)-4.64%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)0.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)0.99%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)3
Avg Revenue beat(12)-1%
Revenue beat(16)5
Avg Revenue beat(16)-0.52%
PT rev (1m)7.97%
PT rev (3m)26.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.4%
EPS NY rev (1m)9.83%
EPS NY rev (3m)9.83%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.84 | ||
| Fwd PE | 19.46 | ||
| P/S | 2.23 | ||
| P/FCF | 18.97 | ||
| P/OCF | 12.87 | ||
| P/B | 6.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.56 |
EPS(TTM)0.81
EY3.35%
EPS(NY)1.24
Fwd EY5.14%
FCF(TTM)1.27
FCFY5.27%
OCF(TTM)1.88
OCFY7.77%
SpS10.83
BVpS3.96
TBVpS-11.76
PEG (NY)0.53
PEG (5Y)N/A
Graham Number8.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.21% | ||
| ROE | 17.42% | ||
| ROCE | 6.1% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.88% | ||
| ROICexgc | 11.27% | ||
| OM | 15.81% | ||
| PM (TTM) | 6.37% | ||
| GM | 74.02% | ||
| FCFM | 11.76% |
ROA(3y)-0.27%
ROA(5y)-0.41%
ROE(3y)-5.86%
ROE(5y)-4.6%
ROIC(3y)4.34%
ROIC(5y)3.27%
ROICexc(3y)4.37%
ROICexc(5y)3.36%
ROICexgc(3y)9.75%
ROICexgc(5y)7.47%
ROCE(3y)5.52%
ROCE(5y)4.17%
ROICexgc growth 3Y25.02%
ROICexgc growth 5Y0.65%
ROICexc growth 3Y22.11%
ROICexc growth 5Y-0.68%
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%
F-Score4
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 12.12 | ||
| Debt/EBITDA | 5.73 | ||
| Cap/Depr | 61.49% | ||
| Cap/Sales | 5.57% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 69.68% | ||
| Profit Quality | 184.66% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 0.51 |
F-Score4
WACC7.77%
ROIC/WACC0.62
Cap/Depr(3y)144.64%
Cap/Depr(5y)125.53%
Cap/Sales(3y)12.33%
Cap/Sales(5y)11.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.61%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.69%
EPS Next Y56.17%
EPS Next 2Y42.2%
EPS Next 3Y27.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%3.45%
Revenue Next Year0.16%
Revenue Next 2Y2.04%
Revenue Next 3Y2.33%
Revenue Next 5Y2.58%
EBIT growth 1Y0%
EBIT growth 3Y19.32%
EBIT growth 5Y-1.56%
EBIT Next Year18.88%
EBIT Next 3Y10.6%
EBIT Next 5Y7.98%
FCF growth 1Y491.94%
FCF growth 3YN/A
FCF growth 5Y11.44%
OCF growth 1Y37.42%
OCF growth 3Y44.68%
OCF growth 5Y1.56%
OUTFRONT MEDIA INC / OUT FAQ
What is the fundamental rating for OUT stock?
ChartMill assigns a fundamental rating of 4 / 10 to OUT.
What is the valuation status for OUT stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the valuation of OUTFRONT MEDIA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for OUTFRONT MEDIA INC (OUT) is 29.84 and the Price/Book (PB) ratio is 6.1.
Is the dividend of OUTFRONT MEDIA INC sustainable?
The dividend rating of OUTFRONT MEDIA INC (OUT) is 5 / 10 and the dividend payout ratio is 181.72%.