Outfront Media (OUT) AI Stock Analysis

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Outfront Media

(NYSE:OUT)

Rating:72Outperform

Price Target:

$17.50

▲( 11.46% Upside)

Outfront Media's overall score is driven by solid financial performance with improving profitability and cash flow. The stock's attractive valuation and stable technical indicators further support its position. However, challenges such as high leverage and mixed earnings call sentiment temper the outlook.

Positive Factors

Dividend Yield

The company's cash dividend rate provides a 7.2% yield, which is attractive for investors seeking income.

Revenue Growth

The distinctiveness of out-of-home advertising helps support revenue growth by presenting unique messaging and providing flexibility.

Negative Factors

Contract Loss

The loss of the MTA billboard contract and a billboard contract in LA presents a significant headwind to billboard revenue growth.

Macro Environment

There is a reduced visibility given the current macro backdrop.

Revenue Expectations

Q1 total Billboard & Transit revenue was below both the guide and Street estimates.

Outfront Media (OUT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.62B

Dividend Yield5.83%

Average Volume (3M)1.47M

Price to Earnings (P/E)10.3

Beta (1Y)1.63

Revenue Growth-1.10%

EPS GrowthN/A

CountryUS

Employees2,149

SectorReal Estate

Sector Strength64

IndustryREIT - Specialty

Share Statistics

EPS (TTM)-0.14

Shares Outstanding167,073,750

10 Day Avg. Volume1,688,699

30 Day Avg. Volume1,466,597

Financial Highlights & Ratios

PEG Ratio1.13

Price to Book (P/B)3.16

Price to Sales (P/S)0.00

P/FCF Ratio11.59

Enterprise Value/Market Cap2.47

Enterprise Value/Revenue0.88

Enterprise Value/Gross Profit7.65

Enterprise Value/Ebitda5.49

Forecast

1Y Price Target

$18.60

Price Target Upside18.47% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering5

Outfront Media Business Overview & Revenue Model

Company DescriptionOutfront Media (OUT) is a leading provider of out-of-home advertising solutions in the United States and Canada. The company specializes in offering a diverse portfolio of billboard, transit, and digital advertising assets to a wide range of advertisers. Outfront Media operates in the media and advertising sectors, leveraging high-traffic locations to reach audiences in urban, suburban, and rural areas effectively.

How the Company Makes MoneyOutfront Media generates revenue primarily through leasing advertising space on its extensive network of out-of-home assets, which include traditional billboards, digital displays, and transit advertising formats. The company's key revenue streams are derived from selling advertising space to local, regional, and national advertisers across various industries. Outfront Media's strategic partnerships with transit authorities and municipalities enable it to secure prime advertising locations, particularly in high-visibility areas such as major transportation hubs and city centers. Additionally, the company invests in digital technology to enhance its advertising offerings, allowing for dynamic and targeted advertising campaigns that command premium pricing, thereby contributing to its earnings.

Outfront Media Financial Statement Overview

Summary

Outfront Media shows a recovery trajectory in its financial performance, with significant improvements in profitability and cash flow efficiency. However, high leverage remains a concern, requiring careful management to ensure long-term financial health and stability. The company is on a path to improvement with consistent revenue and profit growth.

Income Statement

Positive

Outfront Media's income statement shows an improving trend with a gross profit margin of 48.2% and a net profit margin of 14.1% for the latest year. The EBIT and EBITDA margins have rebounded to 23.2% after a previous negative year. Revenue growth rate is modest at 0.6%, indicating stability with some improvement over the previous year.

Balance Sheet

Neutral

The balance sheet reveals a challenging financial structure with a high debt-to-equity ratio of 2.36, indicating significant leverage. The return on equity stands at 39.8%, suggesting efficient use of equity, despite low equity ratio of 12.4%. The company has reduced its total debt, improving overall financial stability.

Cash Flow

Positive

Cash flow analysis shows strong operational cash flow at 115.9% of net income, with free cash flow growing by 32% year-on-year. The free cash flow to net income ratio is 85.6%, demonstrating efficient cash management and a positive outlook for liquidity.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.83B	1.82B	1.77B	1.46B	1.24B
	Gross Profit
881.90M	852.30M	860.70M	679.90M	525.50M
	EBIT
425.50M	-258.40M	287.70M	168.30M	72.50M
	EBITDA
576.80M	-105.70M	438.20M	307.40M	218.40M
	Net Income Common Stockholders
258.20M	-430.40M	147.90M	35.60M	-59.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.90M	36.00M	40.40M	424.80M	710.40M
	Total Assets
5.22B	5.58B	5.99B	5.92B	5.90B
	Total Debt
4.01B	4.34B	4.21B	4.12B	4.13B
	Net Debt
3.97B	4.30B	4.17B	3.69B	3.42B
	Total Liabilities
4.43B	4.85B	4.76B	4.53B	4.51B
	Stockholders Equity
768.80M	726.80M	1.23B	1.38B	1.36B
Cash Flow		Free Cash Flow
221.10M	167.40M	157.50M	8.50M	53.50M
	Operating Cash Flow
299.20M	254.20M	254.10M	98.80M	130.60M
	Investing Cash Flow
207.50M	-107.50M	-449.50M	-224.00M	-53.20M
	Financing Cash Flow
-495.40M	-151.50M	-188.00M	-162.20M	573.00M

Outfront Media Technical Analysis

Technical Analysis Sentiment

Negative

Last Price15.70

Price Trends

50DMA

15.53

Positive

100DMA

16.73

Negative

200DMA

17.07

Negative

Market Momentum

MACD

0.17

Positive

RSI

49.41

Neutral

STOCH

32.75

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OUT, the sentiment is Negative. The current price of 15.7 is below the 20-day moving average (MA) of 15.80, above the 50-day MA of 15.53, and below the 200-day MA of 17.07, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 32.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OUT.

Outfront Media Risk Analysis

Outfront Media disclosed 40 risk factors in its most recent earnings report. Outfront Media 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 1 New Risks

Our board of directors may revoke our REIT election at any time. Q4, 2024

Outfront Media Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMR	79 Outperform	$11.81B	28.05	38.18%	4.90%	3.58%	-15.47%
EPR	77 Outperform	$4.01B	32.15	6.25%	6.50%	0.69%	-19.22%
OUT	72 Outperform	$2.62B	10.27	39.80%	5.83%	-1.10%	―
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%

* Real Estate Sector Average

Performance Comparison

OUT

Outfront Media

15.70

2.56

19.48%

LAMR

Lamar Advertising

115.31

2.57

2.28%

EPR

EPR Properties

52.76

15.16

40.32%

Outfront Media Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 2.01%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted growth in transit and digital revenues, along with improvements in billboard OIBDA margin. However, challenges included a decline in billboard and local revenues, increased SG&A, and corporate expenses. Despite positive trends in some areas, the overall sentiment is balanced due to the presence of significant lowlights.

Q1-2025 Updates

Positive Updates

Transit Revenue Growth

Transit revenues grew 2.6% with strong growth in the New York MTA segment, which increased by about 10% during the quarter.

Digital Revenue Surge

Digital billboard revenues were up 5.4%, and combined digital revenue grew almost 7% in the quarter, representing nearly 33% of total organic revenues, up from about 31% last year.

Improved Billboard OIBDA Margin

Billboard adjusted OIBDA rose about $2 million or 2%, with margins increasing by 100 basis points year-over-year to 31.9%.

National Revenue Growth

National revenues grew 4% during the first quarter, driven by improved creative efforts on advertising sales.

Negative Updates

Billboard Revenue Decline

Billboard revenues were down 1%, impacted by a 2 percentage point headwind from the exit of a large marginally profitable New York billboard contract.

Local Revenue Decrease

Local revenues declined by 3% year-on-year during the quarter, with growth in New York City transit being offset by weakness in billboard.

Increased SG&A Expenses

SG&A expenses rose about $2 million or 3.2% due to higher compensation-related expenses and a higher allowance for bad debt.

Corporate Expense Increase

Corporate expenses rose by about $5 million, mainly due to management severance payments and executive search fees.

Company Guidance

During the OUTFRONT Media First Quarter 2025 earnings call, the company provided detailed guidance on its financial performance and strategic priorities. Organic revenues grew slightly, aligning with prior guidance, while adjusted OIBDA was $64 million, and AFFO was $24 million. Billboard revenues declined by 1% due to a major New York contract exit, while transit revenues grew 2.6%, driven by a 10% increase in New York MTA revenues. Digital billboard revenues rose by 5.4%, and digital transit revenues increased by nearly 11%, contributing to a 7% growth in combined digital revenue, which now represents 33% of total organic revenues. National revenues increased by 4%, although local revenues fell by 3%. The company also maintained its full-year AFFO growth expectation in the mid-single-digit range, despite an uncertain economic environment. Looking ahead, OUTFRONT expects second-quarter revenues to mirror those of the first quarter, with minimal impact on OIBDA and AFFO from recent contract exits.

Outfront Media Corporate Events

DividendsFinancial Disclosures

Outfront Media Declares Quarterly Cash Dividend

Neutral

May 8, 2025

On May 8, 2025, OUTFRONT Media announced a quarterly cash dividend of $0.30 per share, payable on June 30, 2025. The company reported first-quarter 2025 revenues of $390.7 million, a 4.4% decrease from the previous year, with a net loss of $20.6 million. Despite the uncertain economic climate, the interim CEO expressed confidence in the company’s short and long-term business health.

Executive/Board ChangesShareholder Meetings

Outfront Media Board Member Joseph Wender Retires

Neutral

Apr 17, 2025

On April 16, 2025, Joseph H. Wender, a board member of Outfront Media Inc., announced his retirement and decision not to seek reelection at the company’s 2025 Annual Meeting of Stockholders. His departure is not due to any disagreements with the company, ensuring a smooth transition without impacting the company’s operations or policies.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.