Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $13.04B
• Dividend Yield: 4.77%
• Average Volume (3M): 715.37K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.00
• Revenue Growth: 3.08%
• EPS Growth: -12.87%
• Country: US
• Employees: 3,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 1.52
• Shares Outstanding: 86,798,610
• 10 Day Avg. Volume: 543,039
• 30 Day Avg. Volume: 715,368
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 7.65
• Enterprise Value/Gross Profit: 11.42
• Enterprise Value/Ebitda: 15.70
• 1Y Price Target: $129.00
• Price Target Upside: 1.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $142.00 ▲(11.29% Upside)

Lamar Advertising's overall stock score is driven by strong financial performance and positive technical indicators. The company's strategic acquisitions and dividend policy further enhance its attractiveness. However, high leverage and revised earnings guidance pose potential risks.

Positive Factors

Revenue Growth

Consistent revenue growth over 17 quarters shows robust market demand and effective business strategies, supporting long-term expansion.

Strategic Acquisitions

Strategic acquisitions enhance market position and asset base, providing growth opportunities and competitive advantages in the billboard space.

Shareholder Value

Regular dividends reflect strong cash flow and commitment to shareholder returns, enhancing investor confidence and long-term value.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in volatile market conditions, impacting long-term stability.

Weakness in Certain Categories

Weakness in key advertising categories may indicate shifting market dynamics or competitive pressures, potentially affecting revenue streams.

Loss of Vancouver Transit Contract

Loss of significant contracts can reduce revenue and cash flow, highlighting risks in contract renewals and market competition.

Lamar Advertising Business Overview & Revenue Model

Company Description

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 352,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with approximately 3,800 displays.

How the Company Makes Money

Lamar Advertising generates revenue primarily through leasing advertising space on its extensive network of billboards and digital displays. The company typically enters into contracts with advertisers for specific durations, ranging from a few weeks to several months, allowing them to showcase their products or services. Key revenue streams include traditional billboard advertising, digital advertising, and transit advertising, which involves ads placed on buses and other transit systems. Additionally, Lamar may engage in strategic partnerships with other media companies and local businesses to enhance its advertising offerings. Factors contributing to its earnings include high demand for outdoor advertising in urban areas, the effectiveness of digital billboards in capturing consumer attention, and the company's ability to maintain and expand its inventory of advertising spaces.

Lamar Advertising Financial Statement Overview

Summary

Lamar Advertising demonstrates strong revenue and profit growth, supported by solid margins. However, the high debt-to-equity ratio of 1.83 is a concern for financial stability, despite strong cash flow generation and efficient use of equity capital.

Income Statement

Lamar Advertising shows strong revenue growth with a TTM increase of 63.5%, indicating robust business expansion. The gross profit margin remains healthy at 63.5%, though slightly lower than the previous year. Net profit margin improved to 19.7% in TTM, reflecting better cost management. EBIT and EBITDA margins also show positive trends, supporting profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 1.83 in TTM, which is a concern for financial stability. However, the return on equity is strong at 40.0%, indicating efficient use of equity capital. The equity ratio is not provided, but the high leverage suggests potential risks if market conditions change.

Cash Flow

Operating cash flow remains strong with a TTM coverage ratio of 1.10. However, free cash flow growth is negative at -5.5%, which could impact future investments. The free cash flow to net income ratio is healthy at 83.7%, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.21B	2.11B	2.03B	1.79B	1.57B
Gross Profit	1.49B	1.48B	1.41B	1.36B	1.21B	1.01B
EBITDA	1.09B	1.00B	974.55M	933.06M	775.02M	636.97M
Net Income	440.05M	361.87M	495.76M	438.65M	388.09M	243.39M
Balance Sheet
Total Assets	6.67B	6.59B	6.56B	6.48B	6.05B	5.79B
Cash, Cash Equivalents and Short-Term Investments	55.73M	49.46M	44.60M	52.62M	99.79M	121.57M
Total Debt	4.77B	4.56B	4.64B	4.57B	4.23B	4.10B
Total Liabilities	5.77B	5.54B	5.35B	5.28B	4.83B	4.59B
Stockholders Equity	905.07M	1.05B	1.22B	1.20B	1.22B	1.20B
Cash Flow
Free Cash Flow	722.70M	748.33M	605.34M	614.53M	608.33M	507.60M
Operating Cash Flow	863.94M	873.61M	783.61M	781.61M	734.42M	569.87M
Investing Cash Flow	-122.02M	-164.91M	-310.12M	619.07M	461.76M	-96.89M
Financing Cash Flow	-764.15M	-703.42M	-481.63M	-209.32M	-294.52M	-377.92M

Lamar Advertising Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAMR, the sentiment is Positive. The current price of 127.6 is above the 20-day moving average (MA) of 125.45, above the 50-day MA of 124.26, and above the 200-day MA of 119.61, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAMR.

Lamar Advertising Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPR	77 Outperform	$4.19B	27.06	7.56%	6.15%	1.37%	-16.66%
LAMR	77 Outperform	$13.04B	29.51	41.80%	4.77%	3.08%	-12.87%
OUT	66 Neutral	$3.13B	30.75	14.89%	8.81%	-2.49%	-52.99%
Sector *	63 Neutral	$7.15B	13.09	-0.31%	6.85%	4.03%	-25.34%

Lamar Advertising Corporate Events

Lamar Advertising Declares Quarterly Cash Dividend

On August 27, 2025, Lamar Advertising Company announced that its Board of Directors declared a quarterly cash dividend of $1.55 per share, payable on September 30, 2025, to stockholders of record on September 19, 2025. This announcement reflects the company’s ongoing commitment to providing shareholder value, with expected total quarterly distributions in 2025 reaching at least $6.20 per common share.

Lamar Advertising Expands with Verde Outdoor Acquisition

On July 2, 2025, Lamar Advertising Limited Partnership issued 1,187,500 Common Units to acquire assets from Verde Outdoor, which include over 1,500 billboard faces across ten states. The issuance of these units, exempt from registration under the Securities Act, allows for redemption after a holding period, impacting Lamar’s market positioning by expanding its asset base significantly.