Lamar Advertising Co/New (NASDAQ: LAMR)

Sector: Real Estate Industry: REIT - Specialty CIK: 0001090425
Market Cap 12.52 Bn
P/B 13.77
P/E 427.65
P/S 10.32
ROIC (Qtr) 10.50
Div Yield % 1.36
Rev 1y % (Qtr) 3.79
Total Debt (Qtr) 4.79 Bn
Debt/Equity (Qtr) 4.64
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About

Investment thesis

Bull case

  • Operating cash flow of 872.20M provides exceptional 237.01x coverage of minority interest expenses 3.68M, showing strong core operations.
  • Operating cash flow of 872.20M provides strong 27.16x coverage of stock compensation 32.12M, indicating sustainable incentive practices.
  • Strong operating cash flow of 872.20M provides 1.77x coverage of SG&A expenses 493.37M, showing efficient operational cost management.
  • Robust free cash flow of 711.25M exceeds capital expenditure of 160.95M by 4.42x, indicating strong organic growth funding capability.
  • Tangible assets of 3.60B provide exceptional 22.23x coverage of deferred revenue 161.97M, showing strong service capability backing.

Bear case

  • Operating cash flow of 872.20M barely covers its investment activities of (184.92M), with a coverage ratio of -4.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 872.20M provides thin coverage of dividend payments of (643.05M) with a -1.36 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 22.02M provide limited coverage of acquisition spending of (148.20M), which is -0.15x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 614.64M show weak coverage of depreciation charges of 477.64M, with a 1.29 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of (694.62M) relative to working capital of (287.51M), which is 2.42x suggests concerning dependence on external funding for operational needs.

Legal Entity Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Specialty
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EQIX Equinix Inc 93.20 Bn 69.03 10.11 22.73 Bn
2 AMT American Tower Corp /Ma/ 84.92 Bn 69.21 11.41 45.01 Bn
3 DLR Digital Realty Trust, Inc. 61.15 Bn 48.23 10.00 19.66 Bn
4 CCI Crown Castle Inc. 37.84 Bn 64.24 6.91 29.58 Bn
5 IRM Iron Mountain Inc 32.10 Bn 222.02 4.65 18.73 Bn
6 SBAC Sba Communications Corp 25.39 Bn 332.98 15.54 15.02 Bn
7 WY Weyerhaeuser Co 19.35 Bn 59.73 2.80 5.57 Bn
8 LAMR Lamar Advertising Co/New 12.52 Bn 427.65 10.32 4.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.14 1.49
EV to Cash from Ops. EV/CFO 37.07 23.58
EV to Debt EV to Debt 3.05 2.74
EV to EBIT EV/EBIT 71.12 32.67
EV to EBITDA EV/EBITDA 28.42 18.09
EV to Free Cash Flow [EV/FCF] EV/FCF 51.21 66.87
EV to Market Cap EV to Market Cap 1.17 2.19
EV to Revenue EV/Rev 12.04 9.81
Price to Book Value [P/B] P/B 13.77 0.95
Price to Earnings [P/E] P/E 427.65 70.17
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.67 3.96
Dividend Payout Ratio % Div Payout % (Qtr) 147.90 112.65
Dividend per Basic Share Div per Share (Qtr) 6.30 3.59
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 89.67 187.43
Interest Coverage Int. cover (Qtr) 3.84 4.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -25.36 12.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.39 105.31
Dividend Growth (1y) % Div 1y % (Qtr) 20.00 27.11
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.61 44.10
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.88 -3.90
EBIT Growth (1y) % EBIT 1y % (Qtr) -11.24 45.16
EBT Growth (1y) % EBT 1y % (Qtr) -11.98 209.40
EPS Growth (1y) % EPS 1y % (Qtr) -14.97 198.65
FCF Growth (1y) % FCF 1y % (Qtr) -1.23 -130.11
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.32 5.54
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.20
Cash Payout Ratio Cash Payout (Qtr) 0.62 0.17
Cash Ratio Cash Ratio (Qtr) 0.03 0.30
Current Ratio Curr Ratio (Qtr) 0.59 0.62
Debt to Equity Ratio Debt/Equity (Qtr) 4.64 1.20
Interest Cover Ratio Int Coverage (Qtr) 3.84 4.10
Times Interest Earned Times Interest Earned (Qtr) 3.84 4.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 48.50 59.74
EBIT Margin % EBIT Margin % (Qtr) 27.32 40.99
EBT Margin % EBT Margin % (Qtr) 20.20 18.94
Gross Margin % Gross Margin % (Qtr) 67.10 65.41
Net Profit Margin % Net Margin % (Qtr) 19.30 14.71