Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $12.39B
• Dividend Yield: 4.85%
• Average Volume (3M): 617.00K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.01
• Revenue Growth: 3.08%
• EPS Growth: -12.87%
• Country: US
• Employees: 3,500
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Specialty
• EPS (TTM): 1.52
• Shares Outstanding: 86,798,610
• 10 Day Avg. Volume: 978,228
• 30 Day Avg. Volume: 616,997
• 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: 1.38
• Enterprise Value/Revenue: 7.65
• Enterprise Value/Gross Profit: 12.06
• Enterprise Value/Ebitda: 15.76
• 1Y Price Target: $130.20
• Price Target Upside: 2.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: $136.00 ▲(7.27% Upside)

Lamar Advertising's strong financial performance and strategic acquisitions are key strengths, but high leverage and mixed earnings guidance present risks. The stock's valuation is high, but the dividend yield is appealing. Technical indicators suggest a neutral trend.

Positive Factors

Growth Opportunities

Increasing digital boards and tuck-in acquisitions represent tailwinds in future.

M&A and Digital Conversion

Liquidity remains robust, supporting an active M&A pipeline and digital conversions.

Revenue Growth

Strength in local and programmatic advertising drove revenue, meeting expectations.

Negative Factors

Ad Spend

A slowdown in local and national ad spend tempers growth expectations for '25, leading to lowered AFFO guide.

AFFO Guidance

Management reduced AFFO guidance driven by Vancouver transit exit and lighter topline expectations.

Revenue Outlook

The new outlook implies more cautious revenue and earnings expectations for the year.

Lamar Advertising Business Overview & Revenue Model

Company Description

Lamar Advertising Company (NASDAQ: LAMR) is a leading outdoor advertising company in the United States, specializing in billboard advertising. The company operates a vast network of billboards across various formats, including traditional and digital displays, primarily in high-traffic urban and suburban areas. Lamar's services cater to a diverse range of clients, including local businesses, national brands, and advertising agencies, providing them with innovative advertising solutions to reach their target audiences effectively.

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 shows strong revenue and profit growth with healthy margins. However, the high debt-to-equity ratio is a concern, despite strong cash flow generation. Overall, the financial health is positive, but attention is needed on managing debt levels.

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	1.41B	1.48B	1.41B	1.36B	1.21B	1.01B
EBITDA	1.08B	1.00B	974.55M	916.04M	793.75M	652.38M
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: 126.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 126.78 is above the 20-day moving average (MA) of 122.07, above the 50-day MA of 122.53, and above the 200-day MA of 119.44, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 80.70 is Negative, 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
LAMR	72 Outperform	$12.39B	28.54	41.80%	4.85%	3.08%	-12.87%
GLPI	72 Outperform	$13.41B	18.20	16.52%	6.36%	5.38%	-9.82%
OUT	66 Neutral	$3.16B	31.17	14.89%	8.60%	-2.49%	-52.99%
SBAC	64 Neutral	$23.72B	27.14	-14.67%	1.93%	1.82%	71.39%
Sector *	63 Neutral	$6.92B	13.18	-0.57%	7.01%	3.62%	-22.63%
IRM	60 Neutral	$26.74B	659.50	-35.81%	3.20%	10.72%	-81.96%
CCI	51 Neutral	$44.60B	33.81	-234.10%	5.55%	-17.95%	-398.78%

Lamar Advertising Corporate Events

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.