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Lamar Advertising
(NASDAQ:LAMR)
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Rating:72Outperform
Price Target:
$176.00
â–²(10.37% Upside)
Action:Reiterated
Date:08/06/26
Overall score is driven by strong operating fundamentals and cash generation, reinforced by a bullish earnings update (raised AFFO guidance and dividend outlook). The biggest constraint is the balance-sheet risk from historically high leverage, while valuation is also a modest headwind given the elevated P/E despite an attractive dividend yield. Technicals are mixed, indicating consolidation rather than strong near-term momentum.
Positive Factors
Cash generation
Consistent operating cash flow and high free-cash-flow conversion (TTM ~83%) provide durable internal funding for dividends, maintenance capex, and M&A. Strong cash conversion reduces reliance on external financing and supports predictable capital returns over the medium term.
Negative Factors
High leverage and thin equity
Elevated multi-year leverage and relatively thin equity amplify refinancing and interest-rate sensitivity—material for a REIT. Even with current liquidity and coverage, high leverage reduces flexibility for large shocks, raises refinancing risk, and can constrain capital allocation during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and high free-cash-flow conversion (TTM ~83%) provide durable internal funding for dividends, maintenance capex, and M&A. Strong cash conversion reduces reliance on external financing and supports predictable capital returns over the medium term.
Read all positive factors
Lamar Advertising Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows how revenue is generated across different segments, highlighting which areas drive growth and profitability, and indicating potential shifts in business focus or market demand.
Shows how revenue is generated across different segments, highlighting which areas drive growth and profitability, and indicating potential shifts in business focus or market demand.
Data provided by:
The Fly
The FlyLamar Advertising (LAMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.23B
Dividend Yield4.09%
Average Volume (3M)608.03K
Price to Earnings (P/E)29.5
Beta (1Y)0.83
Revenue Growth3.36%
EPS Growth31.50%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)5.49
Shares Outstanding87,055,016
10 Day Avg. Volume473,397
30 Day Avg. Volume608,029
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)12.71
Price to Sales (P/S)5.67
P/FCF Ratio17.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$158.60Price Target Upside-0.54% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)5.92
Revenue Forecast (FY)$2.38B
Lamar Advertising Business Overview & Revenue Model
Company Description
Established in 1902, Lamar Advertising (Nasdaq: LAMR) operates as a major force in the North American outdoor advertising landscape, boasting a portfolio of over 352,000 displays across the United States and Canada. Lamar furnishes advertisers wit...
How the Company Makes Money
Lamar primarily makes money by selling advertising space (and time/rotation) on its out-of-home display network. The largest revenue driver is billboard advertising, where advertisers pay for campaigns that run on specific structures in defined ge...
Lamar Advertising Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed broad, multi-channel momentum: revenue, adjusted EBITDA, digital growth, programmatic expansion, airport acceleration, and raised AFFO guidance and dividend, supported by a strong balance sheet and active M&A. Offsetting items include higher-than-expected expense growth (driven by variable costs), some category softness (real estate/amusements), and timing uncertainty for additional cost-savings from software initiatives. Overall the positives—record margins, double-digit digital growth, raised guidance, and healthy liquidity—materially outweigh the manageable headwinds.Positive Updates
Revenue and EBITDA Growth
Acquisition-adjusted consolidated revenue grew 6.1% in Q2 2026; adjusted EBITDA rose 7.3% on an acquisition-adjusted basis and was $303.4M (up 9.0% vs. $278.4M in Q2 2025). Adjusted EBITDA margin expanded 110 bps to a record 49.2%.
Negative Updates
Expense Pressure Above Initial Plan
Acquisition-adjusted consolidated expenses rose 5.1% in Q2 (about 150 bps higher than anticipated), driven by variable costs (revenue share leases and sales commissions). Management now expects full-year expense growth closer to ~4% (above prior ~3% framework).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EBITDA Growth
Acquisition-adjusted consolidated revenue grew 6.1% in Q2 2026; adjusted EBITDA rose 7.3% on an acquisition-adjusted basis and was $303.4M (up 9.0% vs. $278.4M in Q2 2025). Adjusted EBITDA margin expanded 110 bps to a record 49.2%.
Read all positive updates
Company Guidance
Management raised full‑year diluted AFFO guidance to $8.75–$8.90 per share (a $0.22 midpoint increase, implying roughly 7% AFFO/share growth vs. 2025), with cash interest assumed at $155M (no short‑term rate change), maintenance CapEx budgeted at $65M and total CapEx ≈$186M, and cash taxes ≈$12M; they recommended a $0.05 quarterly dividend increase to $1.65 (Board approval pending) and expect at least $6.50 of regular dividends for the year (4.1% yield at yesterday’s close) with a likely year‑end special dividend to distribute 100% of taxable income. On the balance sheet they expect total leverage to hover around 3.0x net debt/EBITDA (secured <1x), reflecting ~ $3.5B consolidated debt, a weighted‑average interest rate of 4.5% and 4‑year weighted maturity, with $720M liquidity (cash $68M, revolver $652M) and $250M AR securitization outstanding; management retains >$1B deployment capacity and expects to exceed $200M of cash M&A spend for 2026.Lamar Advertising Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
45
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.33B | 2.27B | 2.21B | 2.11B | 2.03B | 1.79B |
| Gross Profit | 148.56M | 866.53M | 1.48B | 1.41B | 1.36B | 1.21B |
| EBITDA | 1.03B | 1.10B | 1.00B | 974.55M | 933.06M | 775.02M |
| Net Income | 556.08M | 587.15M | 361.87M | 495.76M | 438.65M | 388.09M |
Balance Sheet | ||||||
| Total Assets | 6.99B | 6.93B | 6.59B | 6.56B | 6.48B | 6.05B |
| Cash, Cash Equivalents and Short-Term Investments | 67.95M | 64.81M | 49.46M | 44.60M | 52.62M | 99.79M |
| Total Debt | 0.00 | 6.18B | 4.56B | 4.64B | 4.57B | 4.23B |
| Total Liabilities | 6.00B | 5.91B | 5.54B | 5.35B | 5.28B | 4.83B |
| Stockholders Equity | 995.47M | 1.01B | 1.05B | 1.22B | 1.20B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | 830.22M | 736.01M | 748.33M | 649.52M | 614.53M | 608.33M |
| Operating Cash Flow | 906.62M | 864.05M | 873.61M | 783.61M | 781.61M | 734.42M |
| Investing Cash Flow | -210.86M | -244.63M | -164.91M | -310.12M | -619.07M | -461.76M |
| Financing Cash Flow | -286.85M | -604.32M | -703.42M | -481.63M | -209.32M | -294.52M |
Lamar Advertising Technical Analysis
Positive
159.46
Price Trends
155.59
Positive
145.53
Positive
135.48
Positive
Market Momentum
1.07
Positive
53.77
Neutral
32.00
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 159.46 is below the 20-day moving average (MA) of 159.74, above the 50-day MA of 155.59, and above the 200-day MA of 135.48, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAMR.
Lamar Advertising Risk Analysis
Lamar Advertising disclosed 33 risk factors in its most recent earnings report. Lamar Advertising reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lamar Advertising Peers Comparison
UnderperformOutperform
Sector (65)
LAMR
Lamar Advertising
160.00
41.23
34.71%
EPR
EPR Properties
61.34
10.65
21.01%
OUT
Outfront Media
31.15
14.27
84.55%
Lamar Advertising Corporate Events
Business Operations and StrategyShareholder Meetings
Lamar Shareholders Approve Expanded Equity Incentive Plans
Positive
May 19, 2026
At its Annual Meeting of Stockholders held on May 14, 2026, Lamar Advertising shareholders approved amendments to two key equity plans, raising the share reserve under the 1996 Equity Incentive Plan by 2,000,000 Class A shares to 19,500,000 effect...
Dividends
Lamar Advertising Declares Quarterly Dividend, Reaffirms 2026 Payouts
Positive
May 14, 2026
On May 14, 2026, Lamar Advertising Company announced that its board of directors had declared a quarterly cash dividend of $1.60 per share on its Class A and Class B common stock. The dividend is scheduled to be paid on June 30, 2026 to stockholde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.