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Outfront Media Inc (OUT)
:OUT
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Outfront Media
(NYSE:OUT)
Rating:70Neutral
Price Target:
$17.00
▲(7.26%Upside)
Positive Factors
Dividend Yield
OUT is yielding ~8% on its dividend, which is viewed as compelling for patient investors.
Revenue Growth
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.
Lower Estimates
The price target has been lowered to $18 on a lower FY25 Adj. OIBDA estimate.
Revenue Headwind
OUT exited a low-margin billboard contract in LA, which will serve as a revenue headwind.
Outfront Media (OUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.65B
Dividend Yield7.69%
Average Volume (3M)1.40M
Price to Earnings (P/E)10.4
Beta (1Y)1.63
Revenue Growth-1.10%
EPS GrowthN/A
CountryUS
Employees2,149
SectorReal Estate
Sector Strength69
IndustryREIT - Specialty
Share Statistics
EPS (TTM)-0.14
Shares Outstanding167,073,750
10 Day Avg. Volume1,315,623
30 Day Avg. Volume1,398,555
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.18
Price to Sales (P/S)0.00
P/FCF Ratio16.96
Enterprise Value/Market Cap2.58
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit7.76
Enterprise Value/Ebitda4.05
Forecast
1Y Price Target
$18.80Price Target Upside18.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Outfront Media Business Overview & Revenue Model
Company DescriptionOutfront Media Inc. leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its technology platform, Outfront Media Inc. will fundamentally change the ways advertisers engage audiences on-the-go.
How the Company Makes MoneyOutfront Media generates revenue primarily through the leasing of advertising space on its extensive network of billboards and transit displays. The company offers various advertising formats, including static billboards, digital billboards, and transit advertising on buses and trains. Revenue is driven by long-term contracts with advertisers who pay to display their messages in high-traffic locations. Outfront Media also leverages its digital displays to offer dynamic content solutions, allowing advertisers to update their messages in real-time. Significant partnerships with local transit authorities and municipalities provide exclusive advertising rights, enhancing Outfront's ability to secure premium locations and attract a diverse range of advertisers. Additionally, the company's investment in digital technology and data analytics enhances targeting capabilities, making its advertising solutions more attractive to marketers seeking measurable results.
Outfront Media Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 4.90%|
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 Financial Statement Overview
Summary
Outfront Media exhibits a recovery trajectory with improving profitability and cash flow generation. The balance sheet's high leverage remains a risk, but operational efficiencies are enhancing financial health. Continued focus on revenue growth and debt management will be crucial to maintaining this positive momentum.Income Statement
Outfront Media's TTM (Trailing-Twelve-Months) gross profit margin is solid, reflecting efficient cost management. The net profit margin shows improvement, indicating profitability trends, but revenue growth is moderately stagnant. EBIT and EBITDA margins demonstrate recovery from past negative figures, which signals operational improvements.68
Positive
Balance Sheet
The company's debt-to-equity ratio indicates high leverage, which is typical for the industry but poses financial risk. However, return on equity has improved, reflecting better profitability relative to equity. The equity ratio is relatively low, suggesting limited asset backing by equity.62
Positive
Cash Flow
Operating cash flow to net income ratio is favorable, showing strong cash generation relative to earnings. Free cash flow growth is robust, indicating effective capital expenditure management. However, the company needs to maintain this trend to ensure sustainability.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.81B | 1.83B | 1.82B | 1.77B | 1.46B | 1.24B | Gross Profit |
| 881.50M | 881.90M | 852.30M | 860.70M | 679.90M | 525.50M | EBIT |
| 425.40M | 425.50M | -258.40M | 287.70M | 168.30M | 72.50M | EBITDA |
| 388.60M | 576.80M | -105.70M | 438.20M | 307.40M | 218.40M | Net Income Common Stockholders |
| 264.80M | 258.20M | -430.40M | 147.90M | 35.60M | -59.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 30.50M | 46.90M | 36.00M | 40.40M | 424.80M | 710.40M | Total Assets |
| 5.13B | 5.22B | 5.58B | 5.99B | 5.92B | 5.90B | Total Debt |
| 1.56B | 4.01B | 4.34B | 4.21B | 4.12B | 4.13B | Net Debt |
| 1.53B | 3.97B | 4.30B | 4.17B | 3.69B | 3.42B | Total Liabilities |
| 4.43B | 4.43B | 4.85B | 4.76B | 4.53B | 4.51B | Stockholders Equity |
| 566.90M | 768.80M | 726.80M | 1.23B | 1.38B | 1.36B |
| Cash Flow | Free Cash Flow | ||||
| 220.30M | 221.10M | 167.40M | 157.50M | 8.50M | 53.50M | Operating Cash Flow |
| 302.20M | 299.20M | 254.20M | 254.10M | 98.80M | 130.60M | Investing Cash Flow |
| 201.80M | 207.50M | -107.50M | -449.50M | -224.00M | -53.20M | Financing Cash Flow |
| -515.80M | -495.40M | -151.50M | -188.00M | -162.20M | 573.00M |
Outfront Media Technical Analysis
Negative
15.85
Price Trends
15.30
Positive
16.23
Negative
16.86
Negative
Market Momentum
0.14
Positive
48.92
Neutral
10.22
Positive
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 15.85 is below the 20-day moving average (MA) of 16.05, above the 50-day MA of 15.30, and below the 200-day MA of 16.86, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, 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 0 New Risks
Outfront Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
OUT
Outfront Media
15.85
3.11
24.41%
LAMR
Lamar Advertising
119.43
10.76
9.90%
EPR
EPR Properties
56.31
18.50
48.93%
Outfront Media Corporate Events
Executive/Board Changes
Outfront Media Appoints Mark Carleton to Board
Positive
Jun 10, 2025
On June 9, 2025, OUTFRONT Media Inc. announced the election of Mark Carleton to its Board of Directors, effective June 11, 2025. Mr. Carleton will also join the audit committee, with his term lasting until the 2026 Annual Meeting of Stockholders. His compensation includes an annual cash retainer and equity grants, aligning with the company’s compensation policy for non-employee directors. This appointment is expected to strengthen the company’s governance structure and potentially enhance its strategic oversight.
The most recent analyst rating on (OUT) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Outfront Media stock, see the OUT Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Outfront Media Holds Annual Stockholders Meeting
Neutral
Jun 3, 2025
On June 3, 2025, Outfront Media Inc. held its Annual Meeting of Stockholders where key decisions were made, including the re-election of six incumbent directors and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. Additionally, the stockholders approved, on a non-binding advisory basis, the compensation of the company’s named executive officers, reflecting continued support for the current management and strategic direction.
The most recent analyst rating on (OUT) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Outfront Media stock, see the OUT Stock Forecast page.
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
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.