OUTFRONT MEDIA INC (OUT) Stock Fundamental Analysis
NYSE:OUT - New York Stock Exchange, Inc. - US69007J3041 - REIT - Currency: USD
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. There are concerns on the financial health of OUT while its profitability can be described as average. OUT is not valued too expensively and it also shows a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: OUT reported negative net income in multiple years.
In the past 5 years OUT always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.99%, OUT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
OUT's Return On Equity of 37.28% is amongst the best of the industry. OUT outperforms 93.33% of its industry peers.
OUT has a Return On Invested Capital (4.64%) which is in line with 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 5.28%.
The last Return On Invested Capital (4.64%) for OUT is above the 3 year average (4.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 37.28% | ||
| ROIC | 4.64% |
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's Profit Margin of 14.12% is in line compared to the rest of the industry. OUT outperforms 53.33% of its industry peers.
In the last couple of years the Profit Margin of OUT has grown nicely.
OUT has a Operating Margin of 15.07%. This is amonst the worse of the industry: OUT underperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of OUT has declined.
The Gross Margin of OUT (74.52%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OUT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.07% | ||
| PM (TTM) | 14.12% | ||
| GM | 74.52% |
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.
OUT has more shares outstanding than it did 1 year ago.
OUT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OUT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that OUT is in the distress zone and has some risk of bankruptcy.
OUT has a worse Altman-Z score (0.34) than 83.33% of its industry peers.
The Debt to FCF ratio of OUT is 12.29, which is on the high side as it means it would take OUT, 12.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.29, OUT is in line with its industry, outperforming 60.00% of the companies in the same industry.
OUT has a Debt/Equity ratio of 3.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.69, OUT is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Altman-Z | 0.34 |
ROIC/WACC0.6
WACC7.79%
2.3 Liquidity
OUT has a Current Ratio of 0.61. 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 (0.61) which is in line with its industry peers.
OUT has a Quick Ratio of 0.61. 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 Quick ratio of OUT (0.61) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.35% over the past year.
The earnings per share for OUT have been decreasing by -10.35% on average. This is quite bad
OUT shows a decrease in Revenue. In the last year, the revenue decreased by -1.10%.
OUT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.54% yearly.
EPS 1Y (TTM)32.35%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.01%
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-4.36%
3.2 Future
OUT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.22% yearly.
Based on estimates for the next years, OUT will show a small growth in Revenue. The Revenue will grow by 1.65% on average per year.
EPS Next Y33.06%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue Next Year-1.25%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
OUT is valuated quite expensively with a Price/Earnings ratio of 25.22.
Compared to the rest of the industry, the Price/Earnings ratio of OUT indicates a somewhat cheap valuation: OUT is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, OUT is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.10, the valuation of OUT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OUT indicates a rather cheap valuation: OUT is cheaper than 90.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. OUT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than OUT, based on the Enterprise Value to EBITDA ratio.
93.33% 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 | 13.9 | ||
| EV/EBITDA | 12.39 |
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 18.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.31%, OUT is a good candidate for dividend investing.
OUT's Dividend Yield is rather good when compared to the industry average which is at 5.88. OUT pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, OUT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
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
81.64% of the earnings are spent on dividend by OUT. This is not a sustainable payout ratio.
DP81.64%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
17.15
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustrySpecialized REITs
Earnings (Last)
Earnings (Next)
Inst Owners101.3%
Inst Owner Change8.05%
Ins Owners2.04%
Ins Owner Change6.37%
Market Cap2.87B
Analysts75
Price Target18.85 (9.91%)
Short Float %13.04%
Short Ratio12.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.31% |
Yearly Dividend1.27
Dividend Growth(5Y)-3.24%
DP81.64%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-25.22%
Min EPS beat(2)-52.23%
Max EPS beat(2)1.79%
EPS beat(4)2
Avg EPS beat(4)-12.24%
Min EPS beat(4)-52.23%
Max EPS beat(4)17.74%
EPS beat(8)3
Avg EPS beat(8)-18.43%
EPS beat(12)4
Avg EPS beat(12)-17.5%
EPS beat(16)8
Avg EPS beat(16)16.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.35%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)-0.38%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)-0.38%
Revenue beat(8)1
Avg Revenue beat(8)-1.59%
Revenue beat(12)2
Avg Revenue beat(12)-1.05%
Revenue beat(16)6
Avg Revenue beat(16)-0.25%
PT rev (1m)-5.94%
PT rev (3m)-10.95%
EPS NQ rev (1m)2.17%
EPS NQ rev (3m)-2.12%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-8.93%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 19.1 | ||
| P/S | 1.58 | ||
| P/FCF | 13.9 | ||
| P/OCF | 9.48 | ||
| P/B | 4.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.39 |
EPS(TTM)0.68
EY3.97%
EPS(NY)0.9
Fwd EY5.23%
FCF(TTM)1.23
FCFY7.19%
OCF(TTM)1.81
OCFY10.55%
SpS10.85
BVpS4.11
TBVpS-11.75
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 37.28% | ||
| ROCE | 5.94% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 10.94% | ||
| OM | 15.07% | ||
| PM (TTM) | 14.12% | ||
| GM | 74.52% | ||
| FCFM | 11.37% |
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%
ROICexcg growth 3Y25.02%
ROICexcg 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-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.69 | ||
| Debt/FCF | 12.29 | ||
| Debt/EBITDA | 5.9 | ||
| Cap/Depr | 61.56% | ||
| Cap/Sales | 5.3% | ||
| Interest Coverage | 1.86 | ||
| Cash Conversion | 70.38% | ||
| Profit Quality | 80.51% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.34 |
F-Score8
WACC7.79%
ROIC/WACC0.6
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)32.35%
EPS 3Y211.13%
EPS 5Y-10.35%
EPS Q2Q%33.01%
EPS Next Y33.06%
EPS Next 2Y20.88%
EPS Next 3Y18.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.1%
Revenue growth 3Y7.74%
Revenue growth 5Y0.54%
Sales Q2Q%-4.36%
Revenue Next Year-1.25%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y-2.39%
EBIT growth 3Y19.32%
EBIT growth 5Y-1.56%
EBIT Next Year15.44%
EBIT Next 3Y7.5%
EBIT Next 5YN/A
FCF growth 1Y202.08%
FCF growth 3YN/A
FCF growth 5Y11.44%
OCF growth 1Y24.36%
OCF growth 3Y44.68%
OCF growth 5Y1.56%