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Clear Channel Outdoor Holdings (CCO)
NYSE:CCO
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Clear Channel Outdoor
(NYSE:CCO)
46Neutral
Positive Factors
Digital Investments
Digital investments are a highlight of operations: Clear Channel Outdoor America added 33 digital billboards in the quarter and now operates 1,930 in total.
Market Positioning
Investments in the format, combined with its continued status to facilitate advertiser reach and create a distinctive impact with consumers, has likely played a helpful role in maintaining a growth footing.
Negative Factors
Financial Leverage
High financial leverage remains a risk.
Clear Channel Outdoor (CCO) vs. S&P 500 (SPY)
Market Cap
$597.87M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-13.48%
EPS Growth55.39%
CountryUS
Employees3,900
SectorCommunication Services
Sector Strength82
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.28
Shares Outstanding490,058,320
10 Day Avg. Volume1,888,831
30 Day Avg. Volume1,333,548
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.40
Price to Cash Flow (P/CF)5.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside68.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Clear Channel Outdoor Business Overview & Revenue Model
Company DescriptionClear Channel Outdoor Holdings, Inc. (CCO) is a global leader in outdoor advertising, providing advertising solutions across airports, transit systems, and roadside billboards. With a presence in major markets around the world, CCO offers a wide range of advertising formats, including traditional billboards, digital displays, and experiential marketing opportunities. The company focuses on leveraging its extensive network of locations to deliver impactful advertising campaigns that reach large audiences effectively.
How the Company Makes MoneyClear Channel Outdoor makes money primarily through the sale of advertising space on its vast network of outdoor media assets, which includes billboards, transit displays, and street furniture. The company's revenue model revolves around leasing these advertising spaces to businesses looking to promote their products and services. Key revenue streams include long-term contracts with advertisers, digital advertising placements, and dynamic pricing strategies that maximize the value of high-traffic locations. Additionally, CCO's partnerships with municipalities and transit authorities allow it to operate in prime locations, further enhancing its revenue potential. The company's ability to adapt to digital trends and offer innovative solutions also contributes to its earnings.
Clear Channel Outdoor Financial Statement Overview
Summary
Clear Channel Outdoor is facing significant financial challenges, characterized by declining revenue, high leverage, and persistent losses. The negative equity position and cash flow difficulties highlight the need for strategic restructuring and financial stabilization. The ongoing negative trends pose risks to financial sustainability without significant improvements.Income Statement
Clear Channel Outdoor has been experiencing declining revenue over the past few years, with a significant drop in 2024. The company shows a negative EBIT and EBITDA, indicating operational challenges. The net profit margin is negative, which highlights ongoing unprofitability issues. The overall revenue growth rate has been negative, and the absence of gross profit margin calculations due to data constraints further complicates the financial outlook.30
Negative
Balance Sheet
The balance sheet shows that Clear Channel Outdoor has a high debt load with a negative stockholders' equity, which is a significant concern. The debt-to-equity ratio is not calculable due to negative equity, indicating potential financial distress. The equity ratio is negative, reflecting financial instability and high leverage risks.20
Very Negative
Cash Flow
The company's cash flow situation is concerning, with negative free cash flow across the periods. The operating cash flow to net income ratio underscores the negative cash generation from operations. There is also a substantial decline in free cash flow, indicating potential liquidity issues.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.51B | 2.13B | 2.48B | 2.24B | 1.85B | Gross Profit |
| 824.65M | 1.03B | 1.15B | 970.86M | 653.40M | EBIT |
| 279.18M | 236.89M | 231.54M | 104.52M | -142.18M | EBITDA |
| 507.98M | 488.94M | 450.74M | 497.64M | 319.04M | Net Income Common Stockholders |
| -179.25M | -310.92M | -94.39M | -433.12M | -600.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 109.71M | 251.65M | 286.78M | 410.77M | 785.31M | Total Assets |
| 4.80B | 4.72B | 5.09B | 5.30B | 5.76B | Total Debt |
| 7.02B | 7.17B | 7.13B | 7.23B | 7.26B | Net Debt |
| 6.91B | 6.92B | 6.84B | 6.82B | 6.47B | Total Liabilities |
| 8.44B | 8.17B | 8.35B | 8.49B | 8.54B | Stockholders Equity |
| -3.64B | -3.46B | -3.26B | -3.19B | -2.78B |
| Cash Flow | Free Cash Flow | |||
| -62.65M | -147.48M | -44.69M | -281.50M | -261.97M | Operating Cash Flow |
| 79.75M | 31.25M | 139.99M | -133.50M | -137.81M | Investing Cash Flow |
| -155.94M | -119.57M | -221.70M | -152.70M | 94.52M | Financing Cash Flow |
| -8.18M | 45.64M | -32.72M | -85.24M | 418.28M |
Clear Channel Outdoor Technical Analysis
Negative
1.19
Price Trends
1.37
Negative
1.46
Negative
1.49
Negative
Market Momentum
-0.04
Positive
36.95
Neutral
36.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCO, the sentiment is Negative. The current price of 1.19 is below the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.37, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 36.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCO.
Clear Channel Outdoor Risk Analysis
Clear Channel Outdoor disclosed 29 risk factors in its most recent earnings report. Clear Channel Outdoor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clear Channel Outdoor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $74.40B | 17.58 | 28.29% | 1.47% | -20.40% | -13.30% | |
69 Neutral | $11.96B | 34.73 | 31.97% | 4.41% | 4.55% | -27.25% | |
65 Neutral | $2.72B | 11.14 | 34.53% | 5.34% | 0.57% | ― | |
64 Neutral | $1.08B | 12.56 | 6.92% | 10.64% | 7.13% | 64.82% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
46 Neutral | $597.87M | ― | 4.92% | ― | -13.48% | 55.39% |
* Communication Services Sector Average
Performance Comparison
CCO
Clear Channel Outdoor
1.19
-0.51
-30.00%
APO
Apollo Global Management
134.92
26.46
24.40%
CIM
Chimera Investment
13.40
1.00
8.06%
LAMR
Lamar Advertising
114.26
2.14
1.91%
OUT
Outfront Media
16.31
1.25
8.30%
Clear Channel Outdoor Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -11.85% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance in the Americas and airport segments, successful divestiture strategies, and positive growth in digital solutions. However, challenges were noted with the loss of a contract in Singapore, decreased revenue in CCI BV, and flat national sales in the Americas. Overall, the positive developments and strategic advancements indicate a cautiously optimistic outlook.Highlights
Record Revenue in Americas Segment
The Americas segment delivered record revenue of $311 million in Q4, representing an increase of 4.1% driven by strength in digital and local sales.
Successful Divestiture Strategy
Clear Channel Outdoor Holdings made significant progress by selling businesses in Europe North and Latin America, totaling $120 million, with an agreement to sell the Europe North segment for $625 million.
Strong Airport Segment Performance
Airport segment revenue increased by 4.3% to a record $116 million due to strong national demand for premium assets and record travel activity.
Positive Full-Year Revenue Growth
Full-year consolidated revenue reached $1.505 billion, marking a 5% increase over the prior year, with Americas and airport segments up 6.6% excluding Singapore.
Innovative Digital Solutions and Expansion
The launch of CCO in-flight insights measurement solution and expansion of the sales force are driving growth in digital advertising and data analytics capabilities.
Lowlights
Loss of Contract in Singapore
There was a revenue impact from the loss of a contract in Singapore as of December 31, 2023, affecting consolidated revenue growth.
Decreased Revenue in CCI BV
Clear Channel International BV saw a revenue decrease of 13.7% due to the sale of the business in France.
Flat National Sales in Americas
National sales in the Americas were flat on a comparable basis, indicating a lack of growth compared to prior periods.
Reduction in Airport Local Sales
Local sales in the airport segment decreased by 4.7% on a comparable basis in Q4, indicating a potential area of concern.
Company Guidance
In the fourth quarter of 2024, Clear Channel Outdoor Holdings, Inc. reported a consolidated revenue of $427 million, marking a 2.6% increase despite the impact of a lost contract in Singapore. The Americas segment achieved record revenue of $311 million, a 4.1% increase, while the airport segment's revenue rose 4.3% to $116 million. The company successfully closed deals worth approximately $120 million and agreed to sell its Europe North segment for $625 million. Adjusted EBITDA was $145 million, up 2.5%, and AFFO increased by 1% to $37 million. For 2025, the company forecasts consolidated revenue between $1.562 billion and $1.607 billion, a 4% to 7% increase over the previous year, with the Americas contributing $1.19 billion to $1.22 billion and airports $372 million to $387 million. Capital expenditures are anticipated to be between $75 million and $85 million.Clear Channel Outdoor Corporate Events
M&A TransactionsBusiness Operations and Strategy
Clear Channel Outdoor Gains Approval for Europe-North Sale
Positive
Mar 10, 2025
On March 10, 2025, Clear Channel Outdoor Holdings, Inc. announced it received all necessary regulatory clearances for the sale of its Europe-North segment to Bauer Radio Limited, a subsidiary of Bauer Media Group. The transaction, expected to close on March 31, 2025, marks a significant step in the company’s strategic realignment, potentially impacting its market positioning and stakeholder interests.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Clear Channel Outdoor Shifts Focus to U.S. Markets
Positive
Feb 24, 2025
Clear Channel Outdoor Holdings, Inc. reported its financial results for the fourth quarter and full year of 2024, revealing a strategic shift towards focusing on higher margin U.S. markets following the sale of its Europe-North segment and businesses in Mexico, Chile, and Peru. The company’s America segment achieved record revenue driven by digital and local sales, contributing to a consolidated revenue increase despite losing a Singapore contract. Ongoing initiatives include expanding its digital footprint and leveraging data analytics to enhance its position in the digital advertising ecosystem. The company also announced plans to sell its remaining Latin American business in Brazil and resume efforts for its business in Spain.
M&A TransactionsBusiness Operations and Strategy
Clear Channel Outdoor Sells Latin American Assets
Neutral
Feb 6, 2025
On February 6, 2025, Clear Channel Outdoor Holdings, Inc. announced the completion of the sale of its businesses in Mexico, Peru, and Chile to Global Media US LLC for $20 million in cash, with an additional $1.25 million earn-out potential. This move is part of Clear Channel’s strategy to optimize its portfolio, improve liquidity, and focus on its American and Airport segments, while the sale of its remaining Latin American business in Brazil is ongoing.
M&A TransactionsBusiness Operations and Strategy
Clear Channel Outdoor Sells Europe-North Segment to Bauer
Positive
Jan 10, 2025
Clear Channel Outdoor Holdings, Inc. has entered into a definitive agreement to sell its Europe-North segment to Bauer Radio Limited for $625 million, subject to adjustments. This transaction is part of Clear Channel’s strategic plan to optimize its portfolio and focus on its America and Airports segments, aiming to reduce leverage and enhance cash flow. The sale, expected to be completed in 2025, will allow Bauer Media Group to strengthen its position in the media industry while Clear Channel Outdoor plans to use the proceeds to pay down debt and adhere to asset sale provisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.