OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J1060 - REIT - Currency: USD
Taking everything into account, OUT scores 4 out of 10 in our fundamental rating. OUT was compared to 29 industry peers in the Specialized REITs industry. OUT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
OUT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of OUT (4.53%) is better than 71.43% of its industry peers.
The Return On Equity of OUT (31.95%) is better than 92.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.80%, OUT is in line with its industry, outperforming 57.14% of the companies in the same industry.
OUT had an Average Return On Invested Capital over the past 3 years of 3.56%. This is in line with the industry average of 5.41%.
The 3 year average ROIC (3.56%) for OUT is below the current ROIC(4.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 31.95% | ||
| ROIC | 4.8% |
ROA(3y)-1.82%
ROA(5y)-0.86%
ROE(3y)-16.6%
ROE(5y)-8.62%
ROIC(3y)3.56%
ROIC(5y)3.3%
1.3 Margins
OUT's Profit Margin of 12.82% is in line compared to the rest of the industry. OUT outperforms 42.86% of its industry peers.
Looking at the Operating Margin, with a value of 15.58%, OUT is doing worse than 82.14% of the companies in the same industry.
OUT's Operating Margin has declined in the last couple of years.
OUT has a better Gross Margin (74.67%) than 60.71% of its industry peers.
In the last couple of years the Gross Margin of OUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.58% | ||
| PM (TTM) | 12.82% | ||
| GM | 74.67% |
OM growth 3Y40.19%
OM growth 5Y-3.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.28%
GM growth 5Y9.88%
2. Health
2.1 Basic Checks
OUT 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, OUT has less shares outstanding
OUT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OUT has a worse debt to assets ratio.
2.2 Solvency
OUT has an Altman-Z score of 0.42. This is a bad value and indicates that OUT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.42, OUT is doing worse than 78.57% of the companies in the same industry.
OUT has a debt to FCF ratio of 13.82. This is a negative value and a sign of low solvency as OUT would need 13.82 years to pay back of all of its debts.
OUT has a Debt to FCF ratio of 13.82. This is comparable to the rest of the industry: OUT outperforms 53.57% of its industry peers.
A Debt/Equity ratio of 3.42 is on the high side and indicates that OUT has dependencies on debt financing.
The Debt to Equity ratio of OUT (3.42) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 0.42 |
ROIC/WACC0.6
WACC7.97%
2.3 Liquidity
OUT has a Current Ratio of 0.65. 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 (0.65) which is comparable to the rest of the industry.
A Quick Ratio of 0.65 indicates that OUT may have some problems paying its short term obligations.
OUT has a Quick ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
OUT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.21%, which is quite impressive.
The earnings per share for OUT have been decreasing by -14.30% on average. This is quite bad
OUT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.37%.
OUT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.54% yearly.
EPS 1Y (TTM)45.21%
EPS 3YN/A
EPS 5Y-14.3%
EPS Q2Q%149.33%
Revenue 1Y (TTM)1.37%
Revenue growth 3Y13.77%
Revenue growth 5Y2.54%
Sales Q2Q%-0.64%
3.2 Future
The Earnings Per Share is expected to grow by 26.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.98% on average over the next years.
EPS Next Y204.41%
EPS Next 2Y34.05%
EPS Next 3Y26.44%
EPS Next 5YN/A
Revenue Next Year0.65%
Revenue Next 2Y1.22%
Revenue Next 3Y1.98%
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
With a Price/Earnings ratio of 29.10, OUT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, OUT is valued a bit cheaper than 64.29% of the companies in the same industry.
OUT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 20.49 indicates a rather expensive valuation of OUT.
OUT's Price/Forward Earnings ratio is rather cheap when compared to the industry. OUT is cheaper than 82.14% of the companies in the same industry.
OUT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.1 | ||
| Fwd PE | 20.49 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than OUT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 89.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.42 | ||
| EV/EBITDA | 12.66 |
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's earnings are expected to grow with 26.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y34.05%
EPS Next 3Y26.44%
5. Dividend
5.1 Amount
OUT has a Yearly Dividend Yield of 6.70%, which is a nice return.
Compared to an average industry Dividend Yield of 4.50, OUT pays a better dividend. On top of this OUT pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
5.2 History
The dividend of OUT decreases each year by -2.75%.
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)-2.75%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
OUT pays out 88.21% of its income as dividend. This is not a sustainable payout ratio.
DP88.21%
EPS Next 2Y34.05%
EPS Next 3Y26.44%
18.04
-0.29 (-1.58%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners91.35%
Inst Owner Change7.3%
Ins Owners1.86%
Ins Owner Change0%
Market Cap2.99B
Analysts75
Price Target20.9 (15.85%)
Short Float %N/A
Short Ratio9.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.7% |
Yearly Dividend1.27
Dividend Growth(5Y)-2.75%
DP88.21%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.74%
Min EPS beat(2)-16.26%
Max EPS beat(2)17.74%
EPS beat(4)2
Avg EPS beat(4)-10.88%
Min EPS beat(4)-54.17%
Max EPS beat(4)17.74%
EPS beat(8)2
Avg EPS beat(8)-20.68%
EPS beat(12)5
Avg EPS beat(12)-3.71%
EPS beat(16)8
Avg EPS beat(16)20.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-2.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.07%
Revenue beat(8)2
Avg Revenue beat(8)-1.13%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)0.36%
PT rev (3m)8.43%
EPS NQ rev (1m)2.06%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)2%
EPS NY rev (3m)3.07%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.1 | ||
| Fwd PE | 20.49 | ||
| P/S | 1.63 | ||
| P/FCF | 16.42 | ||
| P/OCF | 10.71 | ||
| P/B | 4.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.66 |
EPS(TTM)0.62
EY3.44%
EPS(NY)0.88
Fwd EY4.88%
FCF(TTM)1.1
FCFY6.09%
OCF(TTM)1.69
OCFY9.34%
SpS11.08
BVpS4.45
TBVpS-11.6
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.53% | ||
| ROE | 31.95% | ||
| ROCE | 6.13% | ||
| ROIC | 4.8% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 11.18% | ||
| OM | 15.58% | ||
| PM (TTM) | 12.82% | ||
| GM | 74.67% | ||
| FCFM | 9.92% |
ROA(3y)-1.82%
ROA(5y)-0.86%
ROE(3y)-16.6%
ROE(5y)-8.62%
ROIC(3y)3.56%
ROIC(5y)3.3%
ROICexc(3y)3.65%
ROICexc(5y)3.4%
ROICexgc(3y)7.92%
ROICexgc(5y)7.4%
ROCE(3y)4.54%
ROCE(5y)4.26%
ROICexcg growth 3Y54.5%
ROICexcg growth 5Y-17.68%
ROICexc growth 3Y56.39%
ROICexc growth 5Y-7.62%
OM growth 3Y40.19%
OM growth 5Y-3.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.28%
GM growth 5Y9.88%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | 13.82 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 65.97% | ||
| Cap/Sales | 5.29% | ||
| Interest Coverage | 1.89 | ||
| Cash Conversion | 64.45% | ||
| Profit Quality | 77.35% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.42 |
F-Score7
WACC7.97%
ROIC/WACC0.6
Cap/Depr(3y)171.38%
Cap/Depr(5y)129.06%
Cap/Sales(3y)15.34%
Cap/Sales(5y)12.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.21%
EPS 3YN/A
EPS 5Y-14.3%
EPS Q2Q%149.33%
EPS Next Y204.41%
EPS Next 2Y34.05%
EPS Next 3Y26.44%
EPS Next 5YN/A
Revenue 1Y (TTM)1.37%
Revenue growth 3Y13.77%
Revenue growth 5Y2.54%
Sales Q2Q%-0.64%
Revenue Next Year0.65%
Revenue Next 2Y1.22%
Revenue Next 3Y1.98%
Revenue Next 5YN/A
EBIT growth 1Y10.45%
EBIT growth 3Y59.49%
EBIT growth 5Y-0.91%
EBIT Next Year276.29%
EBIT Next 3Y58.1%
EBIT Next 5YN/A
FCF growth 1Y178.93%
FCF growth 3Y31.35%
FCF growth 5Y1.35%
OCF growth 1Y22.41%
OCF growth 3Y24.86%
OCF growth 5Y3.47%