oOh media Ltd (OML) AI Stock Analysis

• Market Cap: AU$759.68M
• Dividend Yield: 4.04%
• Average Volume (3M): 736.42K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.65
• Revenue Growth: 9.25%
• EPS Growth: -42.79%
• Country: AU
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.05
• Shares Outstanding: 538,781,300
• 10 Day Avg. Volume: 829,925
• 30 Day Avg. Volume: 736,418
• PEG Ratio: 2.19
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 4.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.95
• Price Target Upside: 38.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: AU$1.50 ▲(6.38% Upside)

oOh media Ltd's overall stock score is primarily influenced by its stable financial performance, marked by revenue growth and profitability, despite high leverage and declining free cash flow growth. Technical indicators suggest weak momentum, and the high P/E ratio indicates potential overvaluation, which could limit upside potential despite a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's strong market position and ability to attract advertisers, supporting long-term business sustainability.

Operational Efficiency

Improved gross profit margins demonstrate effective cost control and operational efficiency, enhancing profitability and competitive advantage.

Cash Generation

Strong operating cash flow indicates robust cash generation capability, crucial for funding operations and strategic investments.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Free Cash Flow Growth

Negative free cash flow growth may hinder the company's ability to fund new projects and pay down debt, affecting long-term financial health.

Decline in EBITDA

A decline in EBITDA indicates potential pressure on profitability, necessitating improved cost management to sustain earnings.

oOh media Ltd Business Overview & Revenue Model

Company Description

oOh!media Ltd (OML) is a leading Australian out-of-home (OOH) media company specializing in the design, development, and execution of advertising solutions across various platforms. The company operates in several sectors, including roadside, retail, and transit advertising, utilizing both traditional and digital formats. OML's core products and services include large format billboards, street furniture, retail displays, and airport advertising, enhancing brand visibility and engagement for clients across diverse industries.

How the Company Makes Money

oOh!media generates revenue primarily through the leasing of advertising space on its extensive network of outdoor media assets. The company operates on a revenue model that includes both traditional and digital advertising sales, with digital screens allowing for dynamic content and targeted campaigns that can be sold at a premium. Key revenue streams include long-term contracts with advertisers, one-off campaign sales, and programmatic advertising services that enable automated ad placements. Additionally, OML benefits from significant partnerships with various brands and agencies, as well as strategic alliances with property owners and transport operators, which enhance its advertising inventory and market reach. Factors contributing to its earnings include the growth of the OOH advertising sector, increasing demand for digital advertising solutions, and a focus on innovative technologies to improve campaign effectiveness.

oOh media Ltd Financial Statement Overview

Summary

oOh media Ltd shows a promising financial trajectory with consistent revenue growth and profitability. The company has managed to improve its gross profit margins significantly, showcasing operational efficiency. However, the high leverage indicated by the debt-to-equity ratio demands caution. While cash flows are positive, the recent decline in free cash flow growth suggests the need for strategic cash management to sustain future operations.

Income Statement

The company has shown steady revenue growth over the past few years, with a recent increase from AUD 592.6M in 2022 to AUD 635.6M in 2024. Gross profit margin improved significantly from prior years, indicating better cost management and efficiency. The net profit margin has also been positive, indicating profitability, though there was a slight decline in EBITDA in 2024 compared to 2023, suggesting a need for careful cost management.

Balance Sheet

The debt-to-equity ratio is relatively high, reflecting significant leverage which could pose financial risk if not managed properly. However, the equity ratio shows that a substantial portion of the company is funded by equity, which is a positive sign. Return on equity is reasonable, showing that the company is effectively using shareholder equity to generate profits.

Cash Flow

Operating cash flow remains strong, although there was a decline from 2023 to 2024. Free cash flow has been positive and indicates good cash generation capability. However, the free cash flow growth has been negative from 2023 to 2024, suggesting potential challenges in maintaining cash flow levels. The operating cash flow to net income ratio is healthy, indicating good cash conversion from income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	683.49M	635.63M	633.91M	592.62M	503.73M	426.52M
Gross Profit	465.16M	433.88M	417.75M	112.10M	49.52M	-1.60M
EBITDA	171.98M	149.72M	244.92M	290.90M	238.38M	233.62M
Net Income	19.44M	36.58M	34.62M	31.52M	-10.29M	-36.18M
Balance Sheet
Total Assets	1.76B	1.79B	1.66B	1.73B	1.85B	1.91B
Cash, Cash Equivalents and Short-Term Investments	13.83M	21.45M	31.65M	40.05M	60.05M	80.04M
Total Debt	950.55M	956.93M	806.84M	827.90M	951.74M	995.83M
Total Liabilities	1.04B	1.05B	918.13M	929.06M	1.05B	1.10B
Stockholders Equity	716.56M	746.93M	742.23M	805.75M	803.55M	806.93M
Cash Flow
Free Cash Flow	188.27M	139.07M	171.25M	195.65M	141.38M	152.25M
Operating Cash Flow	230.22M	180.67M	211.00M	222.69M	156.08M	167.96M
Investing Cash Flow	-39.00M	-38.52M	-41.90M	-28.89M	-13.80M	-13.22M
Financing Cash Flow	-209.17M	-154.01M	-177.50M	-213.80M	-162.28M	-135.90M

oOh media Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OML, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.56, and below the 200-day MA of 1.51, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OML.

oOh media Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OML	63 Neutral	AU$759.68M	39.06	2.70%	4.04%	9.25%	-42.79%
IGL	63 Neutral	AU$411.46M	8.84	22.94%	6.74%	-1.40%	68.17%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SXL	60 Neutral	€208.71M	26.52	3.01%	4.73%	-15.51%	―
GTN	56 Neutral	AU$63.87M	12.86	-2.90%	76.03%	-2.19%	-210.32%
MXO	54 Neutral	AU$13.54M	―	-1.65%	―	12.07%	98.72%

oOh media Ltd Corporate Events

oOh!media Appoints James Taylor as New CEO

oOh!media Limited has announced the appointment of James Taylor as its new Managing Director and CEO, succeeding Cathy O’Connor who will step down after more than four years. Taylor, with over 25 years of experience in the Australian media industry, is expected to bring his expertise in digital and technology platforms to drive the company’s growth in the Out of Home sector, which is the fastest growing sector in the Australian media landscape. His appointment follows a comprehensive search process, and he is anticipated to join the company by early 2026, ensuring a smooth transition with O’Connor remaining until January 2026.

The most recent analyst rating on (AU:OML) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on oOh media Ltd stock, see the AU:OML Stock Forecast page.

oOh!media to Announce 2025 Half-Year Results

oOh!media Limited has announced that it will release its half-year results for the period ending 30 June 2025 on 18 August 2025. Following the announcement, a briefing for analysts and investors will be held, which will be webcast for broader accessibility. This release is significant as it provides insights into the company’s financial performance and strategic positioning, potentially impacting stakeholders’ perceptions and decisions.

The most recent analyst rating on (AU:OML) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on oOh media Ltd stock, see the AU:OML Stock Forecast page.

oOh!media Faces Contract Non-Renewal with Auckland Transport

oOh!media Limited announced that its contract with Auckland Transport, which accounted for 4% of its FY24 revenue, will not be renewed upon its expiration in September 2025. Despite this setback, the company remains confident in maintaining its leading position in the New Zealand Out Of Home market, emphasizing its diverse lease maturity profile and strong contract discipline to ensure sustainable growth and returns.

The most recent analyst rating on (AU:OML) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on oOh media Ltd stock, see the AU:OML Stock Forecast page.

oOh!media Ltd Issues Performance Rights to Employees

oOh!media Ltd has announced the issuance of 1,525,035 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions until the restriction period ends, reflecting the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market competitiveness.

The most recent analyst rating on (AU:OML) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on oOh media Ltd stock, see the AU:OML Stock Forecast page.