Lamar Advertising Company (LAMR)
NASDAQ:LAMR
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Lamar Advertising
(NASDAQ:LAMR)
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Rating:75Outperform
Price Target:
$152.00
▲(22.81% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Lamar Advertising (LAMR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.54B
Dividend Yield4.9%
Average Volume (3M)611.90K
Price to Earnings (P/E)21.0
Beta (1Y)0.82
Revenue Growth3.04%
EPS Growth-14.88%
CountryUS
Employees3,500
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.50
Shares Outstanding86,910,545
10 Day Avg. Volume636,356
30 Day Avg. Volume611,904
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 Cap1.49
Enterprise Value/Revenue8.25
Enterprise Value/Gross Profit21.57
Enterprise Value/Ebitda17.63
Forecast
1Y Price Target
$142.00Price Target Upside14.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)5.68
Revenue Forecast (FY)$2.37B
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 log...
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 advertise...
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 Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive message: Lamar delivered revenue and AFFO growth, exceeded revised guidance, expanded margins, demonstrated strong digital and programmatic momentum, maintained a healthy balance sheet and active M&A pipeline, and increased the dividend. Headwinds included political advertising volatility (a 2025 drag that should reverse in 2026 but is back-loaded), notable declines in telecom and beverage verticals, and expense pressures from healthcare and ERP initiatives. On balance, the positives (guidance beat, margin expansion, digital/programmatic strength, strong liquidity and M&A activity) outweigh the negatives, though management remains cautious about expense inflation and political timing.Positive Updates
Exceeded Full-Year AFFO Guidance and Grew AFFO
Fiscal 2025 diluted AFFO per share was $8.26, above the high end of the revised guidance; full-year diluted AFFO per share increased 3.4% year-over-year. Q4 diluted AFFO per share was $2.24, up 1.4% versus Q4 2024. Management provided 2026 AFFO guidance of $8.50 to $8.70 per share (guidance range implying 2.9%–5.4% growth vs. 2024; midpoint implies ~4.1% AFFO per share growth).
Negative Updates
Political Advertising Headwind in 2025
Political advertising was a drag in Q4 and for the full year: political was down about $11 million in Q4 versus 2024 and the difference between 2024 and 2025 political was a little less than $20 million for the year. Management expects this dynamic to reverse in 2026 but the timing and magnitude typically back-load into the second half of the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Exceeded Full-Year AFFO Guidance and Grew AFFO
Fiscal 2025 diluted AFFO per share was $8.26, above the high end of the revised guidance; full-year diluted AFFO per share increased 3.4% year-over-year. Q4 diluted AFFO per share was $2.24, up 1.4% versus Q4 2024. Management provided 2026 AFFO guidance of $8.50 to $8.70 per share (guidance range implying 2.9%–5.4% growth vs. 2024; midpoint implies ~4.1% AFFO per share growth).
Read all positive updates
Company Guidance
Lamar guided full-year AFFO of $8.50–$8.70 per share (midpoint implying ~4.1% YoY AFFO per share growth; management said the range represents ~2.9%–5.4% growth versus 2024), with acquisition‑adjusted revenue growth of roughly 3.5%–3.6% and acquisition‑adjusted operating expenses rising about 3% (or “modestly slower than revenue”); the midpoint also implies consolidated operating margins north of 47% (a company record). The guidance assumes cash interest of $154 million (SOFR flat), maintenance CapEx of ~$64 million, cash taxes of ~$10 million, and reflects a dividend plan of $1.60 for Q1 (a $6.40 regular cash dividend for 2026; Q1 annualized yield ~4.8% at yesterday’s close); balance‑sheet metrics cited alongside the guidance include ~ $3.4 billion total debt at a 4.5% weighted average rate, weighted average debt maturity of 4.6 years, net leverage of 2.92x ND/EBITDA, ~$800 million total liquidity ($64.8M cash, $742.2M revolver), and a $250M AR securitization outstanding, with management saying they retain >$1 billion of investment capacity and can deploy capital while remaining at or below their 3.5–4.0x target leverage range.Lamar Advertising Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
84
Very Positive
| 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
Negative
123.77
Price Trends
130.68
Negative
127.86
Negative
123.18
Positive
Market Momentum
-1.41
Positive
37.96
Neutral
25.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAMR, the sentiment is Negative. The current price of 123.77 is below the 20-day moving average (MA) of 132.20, below the 50-day MA of 130.68, and above the 200-day MA of 123.18, indicating a neutral trend. The MACD of -1.41 indicates Positive momentum. The RSI at 37.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.73B | 13.80 | 11.81% | 7.05% | 2.93% | -0.87% | |
75 Outperform | $12.54B | 21.05 | 59.02% | 4.90% | 3.04% | -14.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
55 Neutral | $4.52B | 27.51 | 21.63% | 5.02% | -1.48% | -50.05% |
* Real Estate Sector Average
LAMR
Lamar Advertising
123.77
16.98
15.90%
EPR
EPR Properties
48.71
0.31
0.64%
OUT
Outfront Media
25.65
10.29
66.99%
Lamar Advertising Corporate Events
Business Operations and StrategyStock BuybackDividends
Lamar Advertising Extends Buyback Programs, Declares Quarterly Dividend
Positive
Feb 26, 2026
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 re...
Dividends
Lamar Advertising Declares Quarterly and Special Dividends
Positive
Dec 11, 2025
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 recor...
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.