Boston Omaha (BOC) AI Stock Analysis

• Market Cap: $447.39M
• Dividend Yield: N/A
• Average Volume (3M): 115.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 12.49%
• EPS Growth: 82.27%
• Country: US
• Employees: 439
• Sector: Communication Services
• Sector Strength: 75
• Industry: Advertising Agencies
• EPS (TTM): -0.32
• Shares Outstanding: 30,846,087
• 10 Day Avg. Volume: 154,719
• 30 Day Avg. Volume: 115,337
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.17
• Price to Cash Flow (P/CF): 21.10
• P/FCF Ratio: 0.00
• 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: $0.63
• Price Target Upside: -95.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Boston Omaha's stock reflects a mixed outlook. Strong revenue growth and a solid equity base are overshadowed by profitability issues and negative cash flow. Technical indicators show a neutral market sentiment, but valuation metrics suggest the stock might be overvalued given its current financial performance. Investors may consider this stock risky due to its operational challenges and lack of profitability.

Positive Factors

Advertising revenue

Billboard revenue growth continued its steady increase, aligning with local advertising growth trends.

Insurance performance

The Insurance segment posted a strong quarter, with premium and commission revenues growing significantly year over year.

Negative Factors

Broadband capital consumption

Broadband is consuming significant capital, requiring BOC to demonstrate improvement to ensure the durability of potential cash flows.

Broadband financial performance

Broadband revenue growth decelerated, and its EBITDA was significantly below estimates.

Broadband investment challenges

Broadband's upfront costs and subscriber lag are pushing down early returns and extending payback periods.

Boston Omaha Business Overview & Revenue Model

Company Description

Boston Omaha Corporation (BOC) is a diverse holding company engaged in various sectors, including advertising, insurance, and broadband services. The company invests in and operates businesses with long-term growth potential, with a focus on acquiring and building a portfolio of high-quality assets. Boston Omaha's core services include outdoor advertising, surety insurance, and broadband internet services, all aimed at delivering value to its stakeholders.

How the Company Makes Money

Boston Omaha Corporation generates revenue through multiple streams. The company's outdoor advertising segment earns money by leasing billboard space to advertisers across several U.S. states, providing a steady income from long-term contracts. In the insurance sector, BOC's subsidiary provides surety insurance, earning premiums from clients seeking financial guarantees for contractual obligations. Additionally, Boston Omaha's investments in broadband services contribute to its revenue by offering internet connectivity solutions in underserved areas, leveraging both subscription fees and service contracts. Strategic partnerships and acquisitions in these sectors further enhance its earnings potential, allowing the company to capitalize on synergies and expand its footprint.

Boston Omaha Financial Statement Overview

Summary

Boston Omaha presents a mixed financial profile. While revenue growth and low leverage are positive indicators, persistent net losses and negative free cash flow signal underlying challenges. The company needs to focus on enhancing profitability and cash flow to improve its financial health in the highly competitive traditional media industry.

Income Statement

Boston Omaha has shown moderate revenue growth in the TTM with a 9.1% increase compared to the prior year, indicating a positive trajectory. However, profitability metrics such as gross profit margin (45.9%) and net profit margin (-9.7%) are concerning, especially with negative net income and EBIT. The EBITDA margin is relatively healthier at 17.2%, but overall, the income statement reflects challenges in achieving profitability.

Balance Sheet

The balance sheet demonstrates a strong equity position with a high equity ratio of 74.1%, suggesting financial stability. The debt-to-equity ratio stands at 0.18, indicating low leverage and good risk management. Return on equity remains negative due to net losses, highlighting profitability issues. Overall, the balance sheet is solid, but profitability needs improvement.

Cash Flow

The cash flow statement shows a positive operating cash flow to net income ratio, suggesting efficient cash generation relative to accounting losses. However, the free cash flow is negative, and there is a significant decline in free cash flow growth, indicating challenges in sustaining free cash generation. The company needs to improve its cash flow management to support long-term growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
105.01M	96.25M	81.23M	56.97M	45.74M	41.39M
	Gross Profit
48.20M	12.01M	54.54M	38.38M	27.23M	23.78M
	EBIT
-9.09M	-8.77M	-6.68M	-23.59M	3.40M	-8.21M
	EBITDA
18.07M	17.27M	29.73M	88.82M	10.22M	16.15M
	Net Income Common Stockholders
-10.22M	-7.00M	7.14M	52.75M	-5.57M	-2.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.20M	96.02M	74.07M	235.40M	152.40M	153.89M
	Total Assets
332.19M	768.21M	683.72M	807.05M	509.65M	436.91M
	Total Debt
0.00	88.86M	92.98M	90.61M	74.99M	70.06M
	Net Debt
-17.11M	66.91M	67.49M	18.10M	31.45M	54.03M
	Total Liabilities
15.63M	151.75M	157.07M	166.46M	100.46M	89.94M
	Stockholders Equity
315.22M	538.21M	503.53M	496.33M	402.88M	345.24M
Cash Flow		Free Cash Flow
-15.05M	-35.81M	-45.22M	-13.24M	-3.00M	6.80M
	Operating Cash Flow
20.38M	16.06M	-5.17M	7.77M	5.57M	9.61M
	Investing Cash Flow
14.69M	-64.25M	87.86M	-45.67M	-38.13M	-60.63M
	Financing Cash Flow
-50.14M	32.94M	-109.73M	64.64M	60.01M	49.24M

Boston Omaha Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.26
• 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 BOC, the sentiment is Negative. The current price of 14.26 is above the 20-day moving average (MA) of 14.10, below the 50-day MA of 14.47, and below the 200-day MA of 14.35, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 75.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOC.

Boston Omaha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRK.B	75 Outperform	$1.14T	12.75	14.70%	―	1.91%	-6.72%
MKL	73 Outperform	$23.69B	9.32	16.52%	―	5.17%	35.36%
WFC	71 Outperform	$230.81B	13.17	10.81%	2.19%	7.87%	11.69%
GLRE	66 Neutral	$469.04M	10.99	6.95%	―	7.75%	-49.93%
L	60 Neutral	$19.29B	14.14	8.63%	0.28%	10.44%	1.63%
BOC	60 Neutral	$447.39M	―	-1.91%	―	12.49%	82.27%
Sector *	59 Neutral	$27.95B	0.82	-25.77%	4.12%	2.13%	-46.61%

Boston Omaha Corporate Events

Boston Omaha Reports 2024 Financial Results with Revenue Growth

On March 28, 2025, Boston Omaha Corporation announced its financial results for the fiscal year ended December 31, 2024. The company reported total revenues of $108.3 million, a notable increase from $96.3 million in 2023. Despite this revenue growth, the company experienced a net loss attributable to common stockholders of $1.3 million, an improvement from a $7 million loss in the previous year. The financial results highlighted significant gains in investment income, particularly from the Sky Harbour warrants, but also noted substantial one-time costs related to the separation of a former Co-CEO. The company’s investment in Sky Harbour was valued at $94.5 million, with a potential fair value of $170.5 million if accounted for at market price. Boston Omaha’s cash inflow from operations improved to $21.2 million, and the company repurchased shares worth $1.6 million during the year.