Boston Omaha (BOC) AI Stock Analysis

• Market Cap: $446.64M
• Dividend Yield: N/A
• Average Volume (3M): 110.65K
• Price to Earnings (P/E): 501.8
• Beta (1Y): 0.51
• Revenue Growth: 11.58%
• EPS Growth: N/A
• Country: US
• Employees: 407
• Sector: Communication Services
• Sector Strength: 89
• Industry: Advertising Agencies
• EPS (TTM): -0.02
• Shares Outstanding: 30,872,875
• 10 Day Avg. Volume: 117,259
• 30 Day Avg. Volume: 110,652
• PEG Ratio: 3.09
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -47.89
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 5.26
• Enterprise Value/Ebitda: 4.70
• 1Y Price Target: $25.00
• Price Target Upside: 76.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $15.00 ▲( 5.63% Upside)

Boston Omaha's overall score reflects its strong revenue growth and solid equity position, but it is weighed down by its negative margins, cash flow issues, and high valuation. The technical indicators suggest weak market momentum, further impacting the stock's appeal.

Positive Factors

Insurance performance

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

Revenue growth

Boston Omaha delivered another strong quarter, with broad-based revenue growth across all segments.

Negative Factors

Broadband challenges

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

Capital consumption

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

Boston Omaha Business Overview & Revenue Model

Company Description

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and investment businesses. The company provides high-speed internet service to approximately 7,000 subscribers in communities in southern Arizona; and 10,000 subscribers in Salt Lake City, Park City, Ogden, Provo, and surrounding communities. As of March 25, 2022, it operated approximately 3,900 billboards containing approximately 7,400 advertising faces of which 80 are digital displays. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.

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 demonstrates robust revenue growth and a strong equity position. However, profitability and cash flow management are areas of concern, as reflected in negative margins and free cash flow.

Income Statement

The company has shown consistent revenue growth over the years, with a strong increase in 2024. However, the net profit margin is negative due to net losses, impacting overall profitability. Gross profit margin remains solid, but negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a low debt-to-equity ratio, indicating financial stability. The company maintains a healthy equity ratio, suggesting a strong asset base backed by equity. However, there is an increase in total liabilities, which needs monitoring.

Cash Flow

Operating cash flow has improved, but the company faces challenges with negative free cash flow in recent years. The free cash flow to net income ratio is unfavorable, indicating cash flow issues despite operating profits.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
110.45M	108.27M	96.25M	81.23M	56.97M	45.74M
	Gross Profit
85.43M	92.78M	12.01M	54.54M	38.38M	27.23M
	EBIT
-7.21M	-8.47M	-8.77M	-6.68M	-23.59M	3.40M
	EBITDA
28.93M	32.59M	17.27M	29.73M	88.82M	10.22M
	Net Income Common Stockholders
846.35K	-1.29M	-7.00M	7.14M	52.75M	-5.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.39M	89.55M	96.02M	74.07M	235.40M	152.40M
	Total Assets
801.88M	728.35M	768.21M	683.72M	807.05M	509.65M
	Total Debt
88.86M	99.89M	88.86M	92.98M	90.61M	74.99M
	Net Debt
63.55M	71.60M	66.91M	67.49M	18.10M	31.45M
	Total Liabilities
185.43M	165.63M	151.75M	157.07M	166.46M	100.46M
	Stockholders Equity
538.21M	532.82M	538.21M	503.53M	496.33M	402.88M
Cash Flow		Free Cash Flow
-9.23M	-10.96M	-35.81M	-45.22M	-13.24M	-3.00M
	Operating Cash Flow
21.38M	21.24M	16.06M	-5.17M	7.77M	5.57M
	Investing Cash Flow
-6.01M	28.10M	-64.25M	87.86M	-45.67M	-38.13M
	Financing Cash Flow
-43.03M	-47.56M	32.94M	-109.73M	64.64M	60.01M

Boston Omaha Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.2 is below the 20-day moving average (MA) of 15.02, below the 50-day MA of 14.67, and below the 200-day MA of 14.57, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 8.15 is Positive, 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
NEXN	81 Outperform	$677.77M	16.04	8.57%	―	10.36%	―
DLX	71 Outperform	$610.25M	10.94	9.10%	8.80%	-2.69%	61.73%
Sector *	60 Neutral	$14.11B	6.38	-3.55%	3.70%	2.53%	-36.14%
BOC	56 Neutral	$446.64M	501.77	0.16%	―	11.58%	―
TSQ	50 Neutral	$110.70M	―	74.55%	11.71%	-0.16%	57.03%
CCO	48 Neutral	$536.45M	―	4.92%	―	-17.54%	66.05%
NCMI	47 Neutral	$462.09M	―	-4.73%	0.61%	42.01%	-100.56%

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.