Lamar Advertising (LAMR) AI Stock Analysis

• Market Cap: $12.52B
• Dividend Yield: 5%
• Average Volume (3M): 477.64K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.07
• Revenue Growth: 3.58%
• EPS Growth: -15.47%
• Country: US
• Employees: 3,500
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Specialty
• EPS (TTM): 1.35
• Shares Outstanding: 87,969,955
• 10 Day Avg. Volume: 349,191
• 30 Day Avg. Volume: 477,643
• PEG Ratio: 1.71
• Price to Book (P/B): 8.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.60
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 7.28
• Enterprise Value/Ebitda: 2.66
• 1Y Price Target: $134.00
• Price Target Upside: 9.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $141.00 ▲(15.34%Upside)

Lamar Advertising exhibits strong financial performance with sustainable revenue growth and profitability. The technical indicators suggest bullish momentum, although caution is warranted due to the relatively high valuation. The earnings call reinforced confidence in strategic growth, despite some operational challenges.

Positive Factors

Digital Expansion and Acquisitions

Increasing digital boards and tuck-in acquisitions represent tailwinds in future.

M&A and Digital Conversions

Liquidity remains robust, supporting an active M&A pipeline and digital conversions.

Negative Factors

National Sales and Revenue

Lamar was below expectations on softer-than-expected national sales.

Operating Expenses and Revenue

Lowering AFFO estimates on lower revenue and elevated operating expense growth.

Political Revenue Comparisons

Political revenue contributed significantly, which the market views negatively as it could set up a tough comparison later.

Lamar Advertising Business Overview & Revenue Model

Company Description

Lamar Advertising Company (LAMR) is one of the largest outdoor advertising companies in the United States. Established in 1902 and headquartered in Baton Rouge, Louisiana, Lamar specializes in outdoor advertising including billboards, interstate logos, and transit advertising displays. The company operates in North America, offering advertisers a range of formats to reach consumers on the go, including bulletins, posters, and digital billboards.

How the Company Makes Money

Lamar Advertising generates revenue primarily through leasing advertising space on its extensive network of outdoor displays. The company's key revenue streams include rental fees from advertisers who use Lamar's billboards, transit displays, and logo signs to promote their products and services. Lamar also benefits from the flexibility and higher pricing potential of its digital billboards, which allow for dynamic content and multiple advertisements in a single location. Additionally, the company maintains partnerships with various municipalities and transit authorities to secure prime advertising locations, further enhancing its revenue potential. Factors contributing to Lamar's earnings include the strategic placement of its advertising assets in high-traffic areas and its ability to adapt to market trends by expanding its digital footprint.

Lamar Advertising Financial Statement Overview

Summary

Lamar Advertising is in a strong financial position with sustainable revenue growth and profitability. The balance sheet reflects reduced leverage, improving financial stability. Cash flow metrics are solid, indicating robust cash generation capabilities. While the company faces potential risks related to high liabilities, it maintains healthy profitability and operational efficiency.

Income Statement

Lamar Advertising demonstrates robust revenue growth with a steady increase from $1.57 billion in 2020 to $2.21 billion TTM, indicating strong market presence. The gross profit margin remains healthy, consistently above 65%, reflecting efficient cost management. Net profit margin improved, showing operational efficiency gains. However, EBIT margin fluctuated, suggesting potential volatility in core operations.

Balance Sheet

The company's debt-to-equity ratio decreased significantly from 3.4 in 2020 to 1.1 TTM, indicating a healthier leverage position. The equity ratio has remained stable, suggesting balanced asset financing. Return on Equity (ROE) is strong, enhancing shareholder value. However, the overall liabilities remain high, posing potential financial risk.

Cash Flow

Operating cash flow shows consistent growth, supporting the company’s ability to generate cash from operations. The free cash flow growth rate is positive, enhancing financial flexibility. However, the high operating cash flow to net income ratio suggests reliance on non-operational cash flow components, which could indicate earnings quality issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.21B	2.21B	2.11B	2.03B	1.79B	1.57B
Gross Profit	1.48B	1.48B	1.41B	1.36B	1.21B	1.01B
EBITDA	1.07B	1.00B	974.55M	916.04M	793.75M	652.38M
Net Income	422.40M	361.87M	495.76M	438.65M	388.09M	243.39M
Balance Sheet
Total Assets	6.55B	6.59B	6.56B	6.48B	6.05B	5.79B
Cash, Cash Equivalents and Short-Term Investments	36.12M	49.46M	44.60M	52.62M	99.79M	121.57M
Total Debt	1.36B	4.56B	4.64B	1.26B	4.23B	4.10B
Total Liabilities	5.52B	5.54B	5.35B	5.28B	4.83B	4.59B
Stockholders Equity	1.23B	1.05B	1.22B	1.20B	1.22B	1.20B
Cash Flow
Free Cash Flow	765.10M	748.33M	605.34M	614.53M	608.33M	507.60M
Operating Cash Flow	890.79M	873.61M	783.61M	781.61M	734.42M	569.87M
Investing Cash Flow	-54.46M	-164.91M	-310.12M	619.07M	461.76M	-96.89M
Financing Cash Flow	-836.32M	-703.42M	-481.63M	-209.32M	-294.52M	-377.92M

Lamar Advertising Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 122.25 is below the 20-day moving average (MA) of 124.53, above the 50-day MA of 121.27, and above the 200-day MA of 120.09, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.23 is Positive, 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	78 Outperform	$12.52B	29.74	38.18%	5.00%	3.58%	-15.47%
GLPI	71 Outperform	$13.09B	17.77	16.52%	6.71%	5.38%	-9.82%
SBAC	67 Neutral	$24.15B	29.74	-14.67%	1.86%	-0.29%	47.83%
IRM	67 Neutral	$29.33B	242.31	-35.81%	3.08%	11.04%	-37.29%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
OUT	61 Neutral	$2.93B	11.47	39.80%	9.41%	-1.10%	―
CCI	60 Neutral	$45.71B	33.81	-234.10%	5.48%	-17.95%	-398.78%

Lamar Advertising Corporate Events

Lamar Advertising Expands with Verde Outdoor Acquisition

On July 2, 2025, Lamar Advertising Limited Partnership issued 1,187,500 Common Units to acquire assets from Verde Outdoor, which include over 1,500 billboard faces across ten states. The issuance of these units, exempt from registration under the Securities Act, allows for redemption after a holding period, impacting Lamar’s market positioning by expanding its asset base significantly.

The most recent analyst rating on (LAMR) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.

Lamar Advertising Holds 2025 Annual Stockholders Meeting

On May 15, 2025, Lamar Advertising Company held its 2025 Annual Meeting of Stockholders, where stockholders elected ten directors to serve until the 2026 Annual Meeting. Additionally, the stockholders ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (LAMR) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.

Lamar Advertising Announces Dividend and Stock Buyback

On May 15, 2025, Lamar Advertising Company announced a quarterly cash dividend of $1.55 per share, payable on June 30, 2025, to stockholders of record on June 16, 2025. Additionally, the company completed $150 million in stock repurchases and increased its stock repurchase program by $150 million, bringing the total available for repurchase to $250 million, with the program set to expire on March 31, 2026.

The most recent analyst rating on (LAMR) stock is a Hold with a $121.00 price target. To see the full list of analyst forecasts on Lamar Advertising stock, see the LAMR Stock Forecast page.