Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $13.46B
• Dividend Yield: 4.74%
• Average Volume (3M): 482.67K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.79
• Revenue Growth: 3.04%
• EPS Growth: -14.88%
• Country: US
• Employees: 3,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 1.40
• Shares Outstanding: 86,863,495
• 10 Day Avg. Volume: 348,949
• 30 Day Avg. Volume: 482,671
• PEG Ratio: -1.27
• Price to Book (P/B): 11.89
• Price to Sales (P/S): 5.64
• P/FCF Ratio: 16.64
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 7.64
• Enterprise Value/Gross Profit: 12.35
• Enterprise Value/Ebitda: 16.29
• 1Y Price Target: $139.33
• Price Target Upside: 4.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.84
• Revenue Forecast (FY): $2.27B

• Rating: 73 Outperform
• Price Target: $142.00 ▲(6.89% Upside)

Lamar Advertising's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are slightly offset by valuation concerns and technical indicators suggesting potential overbought conditions. The company's robust cash flow and attractive dividend yield further support the score, despite challenges in local revenue growth and high P/E ratio.

Positive Factors

Digital Billboard Expansion

The expansion in digital billboards enhances Lamar's competitive edge by leveraging technology to capture consumer attention more effectively, supporting long-term revenue growth.

Successful M&A Activity

Strategic acquisitions expand Lamar's market presence and asset base, potentially leading to increased revenue streams and market share over the long term.

Strong Capital Market Transactions

Improved liquidity and extended debt maturity profiles enhance financial stability, providing Lamar with more flexibility for future investments and growth initiatives.

Negative Factors

Local Revenue Growth Challenges

Sluggish local revenue growth indicates potential market saturation or competition, which could limit Lamar's ability to drive revenue from local advertisers.

Political Advertising Decline

A decline in political advertising revenue can impact Lamar's earnings, especially during election cycles, reducing a historically reliable revenue stream.

Increased Operating Expenses

Rising operating expenses, due to severance and technology costs, could pressure margins, necessitating cost management to maintain profitability.

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, digital displays, and transit advertising locations. The company's revenue model is based on long-term contracts with advertisers who pay for the right to display their advertisements for specified periods. Key revenue streams include traditional static billboard advertising, digital billboard advertising which allows for rotating ads and real-time updates, and transit advertising on buses and shelters. Additionally, Lamar benefits from partnerships with local municipalities and transit authorities, which can provide exclusive advertising rights in certain locations. Seasonal advertising campaigns and promotional events also contribute to its earnings, as businesses often seek to increase visibility during peak shopping times or special events.

Lamar Advertising Financial Statement Overview

Summary

Lamar Advertising demonstrates solid financial performance with strong revenue growth and improved profitability. The balance sheet shows better leverage management, although high debt levels remain a concern. Cash flow metrics are strong, indicating good liquidity and cash management. The company is on a positive growth trajectory, but should continue to focus on optimizing costs and managing leverage.

Income Statement

Lamar Advertising shows strong revenue growth with a TTM increase of 9.61%, indicating robust demand in its market. The gross profit margin is healthy at 49.39%, although it has decreased from previous years. The net profit margin has improved to 19.30% in the TTM, reflecting better cost management. However, the EBIT margin has declined, suggesting increased operating expenses. Overall, the income statement reflects a positive growth trajectory with some areas for cost optimization.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM to 1.55 from 4.35 in the previous year, indicating better leverage management. Return on equity is strong at 43.13%, showcasing effective use of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. The balance sheet shows improved financial stability, but the high leverage remains a potential risk.

Cash Flow

Lamar Advertising's cash flow statement is robust, with a free cash flow growth rate of 5.31% in the TTM. The operating cash flow to net income ratio is 1.25, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is also healthy at 0.87, suggesting efficient cash conversion. Overall, the cash flow statement reflects strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.25B	2.21B	2.11B	2.03B	1.79B	1.57B
Gross Profit	1.39B	1.48B	1.41B	1.36B	1.21B	1.01B
EBITDA	1.05B	1.00B	974.55M	933.06M	775.02M	636.97M
Net Income	433.66M	361.87M	495.76M	438.65M	388.09M	243.39M
Balance Sheet
Total Assets	6.82B	6.59B	6.56B	6.48B	6.05B	5.79B
Cash, Cash Equivalents and Short-Term Investments	22.02M	49.46M	44.60M	52.62M	99.79M	121.57M
Total Debt	4.79B	4.56B	4.64B	4.57B	4.23B	4.10B
Total Liabilities	5.78B	5.54B	5.35B	5.28B	4.83B	4.59B
Stockholders Equity	1.03B	1.05B	1.22B	1.20B	1.22B	1.20B
Cash Flow
Free Cash Flow	711.25M	748.33M	605.34M	614.53M	608.33M	507.60M
Operating Cash Flow	872.20M	873.61M	783.61M	781.61M	734.42M	569.87M
Investing Cash Flow	-184.92M	-164.91M	-310.12M	-619.07M	-461.76M	-96.89M
Financing Cash Flow	-694.63M	-703.42M	-481.63M	-209.32M	-294.52M	-377.92M

Lamar Advertising Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.85
• 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 132.85 is above the 20-day moving average (MA) of 129.89, above the 50-day MA of 123.97, and above the 200-day MA of 118.99, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 66.50 is Neutral, neither overbought nor oversold. The STOCH value of 64.85 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
LAMR	73 Outperform	$13.46B	31.24	38.63%	4.74%	3.04%	-14.88%
EPR	70 Outperform	$3.93B	22.53	8.44%	6.80%	2.93%	-0.87%
OUT	67 Neutral	$3.37B	29.40	17.74%	5.15%	-1.48%	-50.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Lamar Advertising Corporate Events

Lamar Advertising Completes $400M Senior Notes Placement

On September 25, 2025, Lamar Advertising Company completed a private placement of $400 million in senior notes due in 2033, raising approximately $393.5 million in net proceeds. This financial maneuver is expected to impact Lamar Media’s operations by imposing certain restrictions on debt, investments, and asset sales, while also offering redemption options under specific conditions, potentially affecting the company’s financial flexibility and stakeholder interests.

Lamar Advertising Completes $400 Million Senior Notes Placement

On September 25, 2025, Lamar Advertising Company completed a private placement of $400 million in senior notes due 2033, resulting in net proceeds of approximately $393.5 million. This financial move is expected to impact Lamar Media’s operations by providing capital while imposing certain restrictions on financial activities, such as incurring additional debt and making certain investments, which could influence the company’s strategic decisions and stakeholder interests.

Lamar Advertising Amends Credit Agreement for $700M Loan

On September 23, 2025, Lamar Media Corp., a subsidiary of Lamar Advertising Company, amended its Credit Agreement to establish $700 million in new Term B Loans. This financial move allowed Lamar Media to repay $600 million of previously outstanding Term B Loans and reduce its revolving credit facility balance, with the new loans maturing in 2032 and offering flexible interest rate options.

Lamar Advertising Secures $700 Million Term B Loans

On September 23, 2025, Lamar Advertising‘s subsidiary, Lamar Media Corp., amended its existing credit agreement to establish $700 million in new Term B Loans. The proceeds were used to repay existing loans and reduce the balance on a revolving credit facility, with the loans maturing in 2032 and bearing interest based on the Adjusted Term SOFR Rate or the Adjusted Base Rate.

Lamar Advertising Subsidiary to Sell $400M Senior Notes

On September 22, 2025, Lamar Advertising Company announced that its subsidiary, Lamar Media Corp., plans to sell $400 million in Senior Notes due 2033 through a private placement. The proceeds, expected to be around $393.5 million after expenses, will be used to repay existing debt under its senior credit facility and Accounts Receivable Securitization Program, potentially impacting the company’s financial structure and market positioning.

Lamar Advertising Announces $400M Senior Notes Sale

On September 22, 2025, Lamar Advertising Company announced that its subsidiary, Lamar Media Corp., plans to sell $400 million in 5.375% Senior Notes due 2033 through a private placement. The proceeds, expected to be approximately $393.5 million after expenses, will be used to repay existing debt under Lamar Media’s senior credit facility and Accounts Receivable Securitization Program, potentially impacting the company’s financial structure and market positioning.

Lamar Advertising Announces $400 Million Senior Notes Offering

On September 22, 2025, Lamar Advertising Company announced a proposed private placement of $400 million in senior notes through its subsidiary, Lamar Media Corp. The proceeds from this offering are intended to repay existing debts under its senior credit facility and Accounts Receivable Securitization Program. Additionally, Lamar Media Corp. is seeking to amend its senior credit agreement to refinance its existing $600 million Term B Loan with a new $700 million facility. These financial maneuvers aim to strengthen Lamar’s financial position, although they carry risks related to market conditions and evolving ESG expectations, which could impact the company’s reputation and operations.

Lamar Advertising Announces $400M Senior Notes Offering

On September 22, 2025, Lamar Advertising Company announced a proposed private placement of $400 million in senior notes by its subsidiary, Lamar Media Corp. The proceeds from this offering are intended to repay existing indebtedness under its senior credit facility and Accounts Receivable Securitization Program. Additionally, Lamar Media Corp. is seeking to amend its senior credit agreement to refinance its existing $600 million Term B Loan facility with a new $700 million facility. This financial maneuver aims to strengthen Lamar’s financial position and manage its debt obligations, though it carries risks related to market conditions and ESG factors that could impact the company’s reputation and operations.