Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $13.95B
• Dividend Yield: 4.9%
• Average Volume (3M): 486.57K
• Price to Earnings (P/E): 23.9
• 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): 1.50
• Shares Outstanding: 86,863,495
• 10 Day Avg. Volume: 583,149
• 30 Day Avg. Volume: 486,568
• PEG Ratio: 0.35
• Price to Book (P/B): 12.71
• Price to Sales (P/S): 5.67
• P/FCF Ratio: 18.81
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 8.87
• Enterprise Value/Gross Profit: 23.21
• Enterprise Value/Ebitda: 18.97
• 1Y Price Target: $142.00
• Price Target Upside: 3.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.8
• Revenue Forecast (FY): $2.37B

• Rating: 75 Outperform
• Price Target: $152.00 ▲(10.35% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong cash flow and high margins, reinforced by positive earnings-call guidance (AFFO growth and record margin outlook) and constructive technical momentum. Offsetting factors are leverage-related balance-sheet risk and a valuation that is supported by the dividend but not especially cheap on P/E.

Positive Factors

Strong cash generation & margins

Lamar generates consistently robust operating cash flow and high free cash flow, which supports recurring dividends, buybacks and M&A without relying on equity raises. Durable cash conversion and elevated EBITDA margins underpin long-term ability to fund capital allocation and weather cyclical ad demand.

Digital and programmatic momentum

Rapid digital buildout and strong programmatic growth increase revenue per site and enable multiple advertisers per display. This structural shift to digital OOH supports higher yields, faster ad rotation, and recurring programmatic demand, creating a durable earnings uplift versus static inventory.

Active M&A and available investment capacity

A proven acquisition cadence and >$1B deployable capacity allow Lamar to grow inventory, capture high-return local assets and drive scale. Disciplined bolt-on M&A plus integration experience offers a repeatable path to revenue and margin expansion when organic occupancy is constrained.

Negative Factors

Elevated leverage

Capital structure is meaningfully leveraged, raising sensitivity to interest-rate moves and refinancing cycles. High leverage can constrain flexibility for opportunistic investment, increase interest expense volatility, and magnify downside in an ad revenue slowdown despite strong ROE supported by leverage.

Limited organic volume upside (peak occupancy)

With occupancy near peak, organic growth must come largely from price increases and product mix rather than adding faces. That structural constraint limits volume-driven revenue growth, places more reliance on pricing power and M&A, and heightens exposure to demand elasticity in slower ad cycles.

Persistent operating expense pressures

Elevated health-insurance costs and multi-year ERP/technology investments are driving structural operating-cost increases. Even modest OpEx creep erodes margin gains from pricing or digital mix improvements and can compress free cash flow if sustained, limiting the pace of deleveraging or excess returns to shareholders.

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

Strong profitability and cash generation (high EBITDA margins and consistently robust operating/free cash flow) support the score. The main offset is balance-sheet risk: leverage is elevated per the balance-sheet analysis, increasing sensitivity to rates and asset-value swings, and earnings have shown some volatility.

Income Statement

LAMR shows strong profitability with consistently high gross and EBITDA margins (TTM (Trailing-Twelve-Months) EBITDA margin ~47%) and improving net margin versus 2024. Revenue growth is modest in the annual period (low-to-mid single digits in 2023–2024), but the TTM (Trailing-Twelve-Months) data indicates a sharp acceleration in revenue growth. A key weakness is earnings volatility: net income dropped in 2024 versus 2023, even as revenue rose, before rebounding in TTM (Trailing-Twelve-Months).

Balance Sheet

The balance sheet is leveraged, with debt-to-equity consistently around ~3.4–4.4x across the annual periods (elevated for financial flexibility). Equity is relatively stable but does not meaningfully de-risk the capital structure. Return on equity is strong (mid-30% to low-40% range, including TTM (Trailing-Twelve-Months)), which is a positive, but it is partly supported by high leverage, increasing sensitivity to refinancing costs and asset-value swings.

Cash Flow

Cash generation is a clear strength: operating cash flow is consistently robust (~$570M to ~$874M annually) and free cash flow remains high and stable, supporting dividends/deleveraging capacity. Cash conversion is healthy, with operating cash flow generally exceeding net income and free cash flow covering a large portion of earnings. The main watch item is variability in free cash flow growth (including a small decline in 2023 and outsized swings in other periods), though overall levels remain strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.27B	2.21B	2.11B	2.03B	1.79B
Gross Profit	866.53M	1.48B	1.41B	1.36B	1.21B
EBITDA	1.10B	1.00B	974.55M	933.06M	775.02M
Net Income	587.15M	361.87M	495.76M	438.65M	388.09M
Balance Sheet
Total Assets	6.93B	6.59B	6.56B	6.48B	6.05B
Cash, Cash Equivalents and Short-Term Investments	64.81M	49.46M	44.60M	52.62M	99.79M
Total Debt	6.18B	4.56B	4.64B	4.57B	4.23B
Total Liabilities	5.91B	5.54B	5.35B	5.28B	4.83B
Stockholders Equity	1.01B	1.05B	1.22B	1.20B	1.22B
Cash Flow
Free Cash Flow	736.01M	748.33M	605.34M	614.53M	608.33M
Operating Cash Flow	864.05M	873.61M	783.61M	781.61M	734.42M
Investing Cash Flow	-244.63M	-164.91M	-310.12M	-619.07M	-461.76M
Financing Cash Flow	-604.32M	-703.42M	-481.63M	-209.32M	-294.52M

Lamar Advertising Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 137.74
• 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 137.74 is above the 20-day moving average (MA) of 132.31, above the 50-day MA of 129.77, and above the 200-day MA of 122.81, indicating a bullish trend. The MACD of 1.74 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 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
EPR	79 Outperform	$4.55B	18.11	―	7.05%	2.93%	-0.87%
LAMR	75 Outperform	$13.95B	23.86	57.04%	4.90%	3.04%	-14.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
OUT	63 Neutral	$5.07B	35.13	19.88%	5.02%	-1.48%	-50.05%

Lamar Advertising Corporate Events

Lamar Advertising Extends Buyback Programs, Declares Quarterly Dividend

On February 26, 2026, Lamar Advertising announced its board had declared a quarterly cash dividend of $1.60 per share, payable on March 31, 2026, to shareholders of record as of March 16. The move underscored the company’s ongoing capital return strategy and signaled continued confidence in cash generation.

On the same date, the board extended Lamar’s stock and debt repurchase programs, each authorizing up to $250 million of buybacks, through September 30, 2027. With $250 million still available under the enlarged $400 million stock plan and no debt repurchases yet executed, the extension increases flexibility for balance sheet management and potential shareholder value enhancement.

The most recent analyst rating on (LAMR) stock is a Hold with a $140.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.

Lamar Advertising Declares Quarterly and Special Dividends

On December 11, 2025, Lamar Advertising Company announced that its Board of Directors declared a quarterly cash dividend of $1.55 per share and a special cash dividend of $0.25 per share, both payable on December 31, 2025, to stockholders of record on December 22, 2025. This announcement reflects the company’s continued commitment to providing value to its shareholders and may enhance its attractiveness to investors by offering a competitive return on investment.

The most recent analyst rating on (LAMR) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.