Education
About Us
Working with TipRanks
Follow Us
Lamar Advertising Company (LAMR)
NASDAQ:LAMR
Top Page
Lamar Advertising
(NASDAQ:LAMR)
69Neutral
Positive Factors
Market Leadership
Lamar commands the most extensive billboard footprint in the US with over 160,000 domestic billboard faces.
Strategic Expansion
The company plans to increase capital deployment into mergers and acquisitions, which is expected to contribute positively to revenue growth.
Negative Factors
Revenue Growth Concerns
Weaker core revenue growth is expected due to ongoing challenges with national advertisements.
Lamar Advertising (LAMR) vs. S&P 500 (SPY)
Market Cap
$11.96B
Dividend Yield4.62%
Average Volume (3M)571.38K
Price to Earnings (P/E)33.1
Beta (1Y)1.23
Revenue Growth4.55%
EPS Growth-27.25%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength69
IndustryREITs
Share Statistics
EPS (TTM)3.52
Shares Outstanding87,976,920
10 Day Avg. Volume599,602
30 Day Avg. Volume571,379
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)N/A
Price to Sales (P/S)5.42
Price to Cash Flow (P/CF)10.70
P/FCF Ratio28.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$132.60Price Target Upside19.84% Upside
Rating ConsensusHold
Number of Analyst Covering5
Lamar Advertising Business Overview & Revenue Model
Company DescriptionLamar Advertising Company is a leading outdoor advertising firm in the United States. Founded in 1902 and headquartered in Baton Rouge, Louisiana, Lamar specializes in billboard advertising, offering a wide array of formats including traditional billboards, digital billboards, and transit advertising displays. It operates one of the largest networks of outdoor advertising structures across North America, providing advertisers with access to prime locations and high-visibility spaces for their marketing campaigns.
How the Company Makes MoneyLamar Advertising primarily generates revenue through the leasing of advertising space on its extensive network of outdoor advertising structures. The company leases billboard space to businesses and advertisers on a short-term or long-term basis, offering both traditional and digital advertising options. Key revenue streams include rental income from billboard leases and fees for digital display advertising, which allows for dynamic content changes. Lamar's business model relies on maintaining a broad and strategically located inventory of billboard structures, which attracts national, regional, and local advertisers. Significant partnerships with municipalities and property owners enable Lamar to secure prime locations for its advertising displays, further enhancing its income potential. Additionally, the company's investment in digital technology has expanded its offerings, allowing for more flexible and engaging advertising solutions that command premium pricing.
Lamar Advertising Financial Statement Overview
Summary
Lamar Advertising shows strong revenue growth and effective cash flow management. The company is highly leveraged, typical for REITs, but maintains a strong return on equity. There is a need to monitor net profitability and leverage levels.Income Statement
Lamar Advertising shows a strong revenue growth with a 4.56% increase from 2023 to 2024. The Gross Profit Margin remains robust at 100% due to the nature of REITs' financial reporting. However, Net Profit Margin has decreased from 23.49% in 2023 to 16.39% in 2024, indicating some pressure on net profitability. The EBIT and EBITDA margins are solid, showing effective cost management and operational efficiency.78
Positive
Balance Sheet
The company has a high Debt-to-Equity Ratio of 1.52 for 2024, which is common in REITs but indicates significant leverage. The Return on Equity is relatively strong at 34.51%, showing efficient use of equity to generate profits. The Equity Ratio is at 15.91%, suggesting a relatively low proportion of equity financing, which could be a risk if interest rates rise.70
Positive
Cash Flow
Lamar Advertising demonstrates strong cash flow performance with substantial Operating Cash Flow. The Free Cash Flow Growth Rate is 44.34% from 2023 to 2024, indicating improved cash generation capabilities. Both Operating Cash Flow to Net Income and Free Cash Flow to Net Income ratios are favorable, highlighting healthy cash flow relative to earnings.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.21B | 2.11B | 2.03B | 1.79B | 1.57B | Gross Profit |
| 1.48B | 1.41B | 1.36B | 1.21B | 1.01B | EBIT |
| 532.04M | 675.43M | 578.00M | 521.19M | 410.11M | EBITDA |
| 1.00B | 974.55M | 916.04M | 793.75M | 652.38M | Net Income Common Stockholders |
| 361.87M | 495.76M | 438.65M | 388.09M | 243.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 49.46M | 44.60M | 52.62M | 99.79M | 121.57M | Total Assets |
| 6.59B | 6.56B | 6.48B | 6.05B | 5.79B | Total Debt |
| 1.60B | 4.64B | 1.26B | 4.23B | 4.10B | Net Debt |
| 1.55B | 4.60B | 1.21B | 4.13B | 3.97B | Total Liabilities |
| 5.54B | 5.35B | 5.28B | 4.83B | 4.59B | Stockholders Equity |
| 1.05B | 1.22B | 1.20B | 1.22B | 1.20B |
| Cash Flow | Free Cash Flow | |||
| 748.33M | 605.34M | 614.53M | 608.33M | 507.60M | Operating Cash Flow |
| 873.61M | 783.61M | 781.61M | 734.42M | 569.87M | Investing Cash Flow |
| -164.91M | -310.12M | 619.07M | 461.76M | -96.89M | Financing Cash Flow |
| -703.42M | -481.63M | -209.32M | -294.52M | -377.92M |
Lamar Advertising Technical Analysis
Negative
110.65
Price Trends
123.87
Negative
126.42
Negative
122.95
Negative
Market Momentum
-2.55
Positive
29.68
Positive
2.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAMR, the sentiment is Negative. The current price of 110.65 is below the 20-day moving average (MA) of 123.46, below the 50-day MA of 123.87, and below the 200-day MA of 122.95, indicating a bearish trend. The MACD of -2.55 indicates Positive momentum. The RSI at 29.68 is Positive, neither overbought nor oversold. The STOCH value of 2.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAMR.
Lamar Advertising Risk Analysis
Lamar Advertising disclosed 30 risk factors in its most recent earnings report. Lamar Advertising 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
Lamar Advertising Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $10.18B | 14.96 | 17.82% | 4.83% | -1.81% | -35.74% | |
69 Neutral | $11.96B | 33.13 | 31.97% | 4.62% | 4.55% | -27.25% | |
65 Neutral | $2.72B | 10.53 | 34.53% | 5.66% | 0.57% | ― | |
61 Neutral | $4.76B | 19.07 | -3.20% | 8.08% | 6.43% | -19.69% | |
50 Neutral | $526.51M | ― | -5.27% | ― | 45.67% | -100.72% | |
30 Underperform | $597.87M | ― | 4.92% | ― | -13.48% | 55.39% |
* Real Estate Sector Average
Performance Comparison
LAMR
Lamar Advertising
110.65
-1.77
-1.57%
CCO
Clear Channel Outdoor
1.10
-0.53
-32.52%
IPG
Interpublic Group of Companies
26.09
-5.17
-16.54%
NCMI
National Cinemedia
5.71
1.63
39.95%
OUT
Outfront Media
15.69
0.75
5.02%
Lamar Advertising Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -16.17% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a generally positive financial performance for 2024, with notable achievements in revenue growth and digital expansion. However, challenges such as increased non-cash expenses, sector-specific revenue declines, and conservative 2025 guidance tempered the overall outlook.Highlights
Revenue Growth and AFFO Increase
Revenue was up 4.1% on an acquisition-adjusted basis compared to Q4 2023, with full-year AFFO per share increasing by 7%.
Digital Billboard Expansion
Digital billboard revenue increased nearly 8% year-over-year, with same-store growth of 3.7%. The company plans to deploy at least 350 new digital displays in 2025.
Successful Divestment of Vistar Media Stake
Lamar sold its 20% stake in Vistar Media to T-Mobile for $115 million, with an additional $15 million due, resulting in a return of over 4x the initial investment.
Solid Financial Performance
Adjusted EBITDA grew 3.9% year-over-year in Q4, with free cash flow improving by 8.5%.
Strong Balance Sheet
Lamar reduced overall debt by $136 million in 2024, with a total leverage ratio of 2.83x net debt to EBITDA.
Lowlights
Increased Depreciation and Amortization Expenses
Depreciation and amortization expenses increased by over 230% due to a revision in asset retirement obligations.
Health Care and Insurance Revenue Declines
Revenue from healthcare and insurance sectors declined by 6.6% and 5%, respectively.
Potential Headwinds in 2025
2025 AFFO guidance is slightly below expectations, with a projected increase of 1.8% to 3.6% over 2024, partly due to a $0.13 headwind from CapEx and the loss of Vistar contribution.
Challenging National Ad Spend
National advertising growth has lagged behind peers due to Lamar's footprint and category-specific recovery patterns.
Company Guidance
In the Q4 2024 earnings call, Lamar reported a strong finish to the year with revenue growth of 4.1% on an acquisition-adjusted basis, aided by political and programmatic advertising. The company achieved full-year AFFO of $7.99 per share, surpassing the revised guidance by $0.04 and the original guidance by $0.17, representing a 7% increase. EBITDA grew 4.5% for the year with a margin improvement to 46.8%, allowing a 13% increase in the distribution to shareholders. For 2025, Lamar guides AFFO per share between $8.13 and $8.28, anticipating 3% acquisition-adjusted revenue growth and a similar rise in operating expenses. The company plans to deploy at least 350 new digital displays organically, with a more active year expected in M&A, potentially spending around $150 million. The call highlighted a solid balance sheet with total leverage of 2.83x net debt to EBITDA and liquidity of over $500 million. Lamar also discussed a successful divestment of its 20% stake in Vistar Media, resulting in a significant gain.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.