OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J1060 - REIT
OUT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 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
OUT had positive earnings in the past year.
In the past year OUT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OUT reported negative net income in multiple years.
Each year in the past 5 years OUT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.53%, OUT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
OUT's Return On Equity of 31.95% is amongst the best of the industry. OUT outperforms 92.86% of its industry peers.
OUT has a Return On Invested Capital of 4.80%. This is comparable to the rest of the industry: OUT outperforms 57.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OUT is in line with the industry average of 5.21%.
The last Return On Invested Capital (4.80%) for OUT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 12.82%, OUT is in line with its industry, outperforming 42.86% of the companies in the same industry.
OUT has a worse Operating Margin (15.58%) than 82.14% of its industry peers.
In the last couple of years the Operating Margin of OUT has declined.
The Gross Margin of OUT (74.67%) is better than 60.71% of its industry peers.
OUT's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for OUT has been increased compared to 1 year ago.
OUT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OUT is higher compared to a year ago.
2.2 Solvency
OUT has an Altman-Z score of 0.43. This is a bad value and indicates that OUT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.43, OUT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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 (13.82) which is in line with its industry peers.
OUT has a Debt/Equity ratio of 3.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.42, OUT is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.42 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.69
WACC7%
2.3 Liquidity
A Current Ratio of 0.65 indicates that OUT may have some problems paying its short term obligations.
OUT's Current ratio of 0.65 is in line compared to the rest of the industry. OUT outperforms 50.00% of its industry peers.
OUT has a Quick 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 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 44.19%, which is quite impressive.
OUT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.30% yearly.
OUT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.37%.
Measured over the past years, OUT shows a small growth in Revenue. The Revenue has been growing by 2.54% on average per year.
EPS 1Y (TTM)44.19%
EPS 3YN/A
EPS 5Y-14.3%
EPS Q2Q%144.44%
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 25.89% 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 Y197.85%
EPS Next 2Y31.86%
EPS Next 3Y25.89%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y1.33%
Revenue Next 3Y1.98%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
OUT is valuated quite expensively with a Price/Earnings ratio of 30.23.
OUT's Price/Earnings ratio is a bit cheaper when compared to the industry. OUT is cheaper than 64.29% of the companies in the same industry.
OUT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.00, OUT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, OUT is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of OUT to the average of the S&P500 Index (24.44), we can say OUT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OUT is valued cheaply inside the industry as 89.29% of the companies are valued more expensively.
89.29% 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 | 17.05 | ||
| EV/EBITDA | 12.82 |
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.
OUT's earnings are expected to grow with 25.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y31.86%
EPS Next 3Y25.89%
5. Dividend
5.1 Amount
OUT has a Yearly Dividend Yield of 6.80%, which is a nice return.
Compared to an average industry Dividend Yield of 4.78, OUT pays a better dividend. On top of this OUT pays more dividend than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
5.2 History
The dividend of OUT decreases each year by -2.98%.
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)-2.98%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
88.21% of the earnings are spent on dividend by OUT. This is not a sustainable payout ratio.
DP88.21%
EPS Next 2Y31.86%
EPS Next 3Y25.89%
OUTFRONT MEDIA INC
NYSE:OUT (1/21/2025, 8:19:01 PM)
After market: 18.74 0 (0%)18.74
-0.17 (-0.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners83.73%
Inst Owner Change0.02%
Ins Owners2.35%
Ins Owner Change0%
Market Cap3.11B
Analysts75
Price TargetN/A
Short Float %11.1%
Short Ratio7.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.8% |
Yearly Dividend1.26
Dividend Growth(5Y)-2.98%
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)-3.7%
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)0.83%
PT rev (3m)8.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.95%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.23 | ||
| Fwd PE | 22 | ||
| P/S | 1.69 | ||
| P/FCF | 17.05 | ||
| P/OCF | 11.12 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.82 |
EPS(TTM)0.62
EY3.31%
EPS(NY)0.85
Fwd EY4.55%
FCF(TTM)1.1
FCFY5.86%
OCF(TTM)1.69
OCFY8.99%
SpS11.08
BVpS4.45
TBVpS-11.6
PEG (NY)0.15
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 | 0.43 |
F-Score7
WACC7%
ROIC/WACC0.69
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)44.19%
EPS 3YN/A
EPS 5Y-14.3%
EPS Q2Q%144.44%
EPS Next Y197.85%
EPS Next 2Y31.86%
EPS Next 3Y25.89%
EPS Next 5YN/A
Revenue 1Y (TTM)1.37%
Revenue growth 3Y13.77%
Revenue growth 5Y2.54%
Sales Q2Q%-0.64%
Revenue Next Year0.71%
Revenue Next 2Y1.33%
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%