Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $13.25B
• Dividend Yield: 4.9%
• Average Volume (3M): 457.44K
• Price to Earnings (P/E): 30.8
• 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: 413,914
• 30 Day Avg. Volume: 457,439
• 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: 1.30
• Enterprise Value/Revenue: 7.64
• Enterprise Value/Gross Profit: 12.35
• Enterprise Value/Ebitda: 16.29
• 1Y Price Target: $139.50
• Price Target Upside: 6.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.8
• Revenue Forecast (FY): $2.37B

• Rating: 72 Outperform
• Price Target: $145.00 ▲(10.87% Upside)

Lamar Advertising's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust cash flow and strategic growth initiatives, including digital expansion and M&A activity, support a positive outlook. However, high leverage and valuation concerns slightly temper the score. The recent dividend announcement further enhances investor appeal.

Positive Factors

Digital Billboard Expansion

The growth in digital billboards reflects Lamar's strategic shift towards more dynamic and higher-margin advertising solutions, positioning it well for future revenue growth as digital becomes a larger part of the advertising landscape.

Strong Cash Flow

Robust cash flow growth indicates strong liquidity and effective cash management, providing Lamar with the financial flexibility to invest in growth opportunities and manage debt obligations efficiently.

Successful M&A Activity

Ongoing M&A activity enhances Lamar's market position by expanding its asset base and geographic reach, supporting long-term growth and competitive advantage in the outdoor advertising industry.

Negative Factors

High Leverage

While leverage management has improved, high debt levels can limit financial flexibility and increase risk, potentially impacting Lamar's ability to navigate economic downturns or invest in strategic initiatives.

Local Revenue Growth Challenges

Sluggish local revenue growth suggests potential market saturation or competitive pressures, which could hinder Lamar's ability to drive growth in this segment and necessitate strategic adjustments.

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, necessitating cost management strategies to sustain long-term financial health and competitiveness.

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: 130.78
• 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 130.78 is above the 20-day moving average (MA) of 127.22, above the 50-day MA of 126.82, and above the 200-day MA of 119.25, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 91.10 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	75 Outperform	$4.16B	23.85	8.44%	7.05%	2.93%	-0.87%
LAMR	72 Outperform	$13.25B	30.76	38.63%	4.90%	3.04%	-14.88%
OUT	69 Neutral	$4.04B	35.21	17.74%	5.02%	-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 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.