Lamar Advertising Company
Lamar Advertising Company Fundamental Analysis
Lamar Advertising Company (LAMR) shows strong financial fundamentals with a PE ratio of 23.13, profit margin of 25.91%, and ROE of 58.83%. The company generates $2.3B in annual revenue with moderate year-over-year growth of 4.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LAMR's fundamental strength across five key dimensions:
Efficiency Score
WeakLAMR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLAMR trades at attractive valuation levels.
Growth Score
WeakLAMR faces weak or negative growth trends.
Financial Health Score
WeakLAMR carries high financial risk with limited liquidity.
Profitability Score
ExcellentLAMR achieves industry-leading margins.
Key Financial Metrics
Is LAMR Expensive or Cheap?
P/E Ratio
LAMR trades at 23.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LAMR's PEG of 0.65 indicates potential undervaluation.
Price to Book
The market values Lamar Advertising Company at 13.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 11.27 times EBITDA. This signals the market has high growth expectations.
How Well Does LAMR Make Money?
Net Profit Margin
For every $100 in sales, Lamar Advertising Company keeps $25.91 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $58.83 in profit for every $100 of shareholder equity.
ROA
Lamar Advertising Company generates $8.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lamar Advertising Company generates strong operating cash flow of $866.32M, reflecting robust business health.
Free Cash Flow
Lamar Advertising Company generates strong free cash flow of $748.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.37 in free cash annually.
FCF Yield
LAMR converts 5.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.004
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.59
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How LAMR Stacks Against Its Sector Peers
| Metric | LAMR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.13 | 24.23 | Neutral |
| ROE | 58.83% | 659.00% | Weak |
| Net Margin | 25.91% | 4497.00% | Weak |
| Debt/Equity | 1.71 | -22.14 (disorted) | Distorted |
| Current Ratio | 0.58 | 13.87 | Weak Liquidity |
| ROA | 8.47% | -1390.00% (disorted) | Weak |
LAMR outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lamar Advertising Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.24%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-4.78%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
339.23%
Industry Style: Income, Inflation Hedge, REIT
High Growth