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Lamar Advertising Company (REIT)

Nasdaq:LAMR
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LAMR
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Founded in 1902, La mar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with approximately 360,000 displays across the United States and Canada. The last earnings update was 81 days ago. More info.


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LAMR Share Price and Events
7 Day Returns
-1.6%
NasdaqGS:LAMR
-2.4%
US REITs
-1.2%
US Market
1 Year Returns
11%
NasdaqGS:LAMR
8.1%
US REITs
3.4%
US Market
LAMR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Lamar Advertising Company (REIT) (LAMR) -1.6% -4.8% -1.5% 11% 15.6% 53.4%
US REITs -2.4% -3.6% 2.5% 8.1% 0.6% 22.1%
US Market -1.2% 0.7% 1.7% 3.4% 35.5% 41.6%
1 Year Return vs Industry and Market
  • LAMR outperformed the REITs industry which returned 8.1% over the past year.
  • LAMR outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
LAMR
Industry
5yr Volatility vs Market

LAMR Value

 Is Lamar Advertising Company (REIT) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Lamar Advertising Company (REIT) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Lamar Advertising Company (REIT).

NasdaqGS:LAMR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LAMR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.475 (1 + (1- 21%) (53.28%))
0.782
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:LAMR using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Lamar Advertising Company (REIT) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Lamar Advertising Company (REIT) is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NasdaqGS:LAMR DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 617.75 Analyst x3 574.66
2021 642.09 Est @ 3.94% 555.64
2022 665.05 Est @ 3.58% 535.37
2023 687.15 Est @ 3.32% 514.58
2024 708.76 Est @ 3.14% 493.74
2025 730.17 Est @ 3.02% 473.18
2026 751.59 Est @ 2.93% 453.08
2027 773.18 Est @ 2.87% 433.59
2028 795.06 Est @ 2.83% 414.76
2029 817.31 Est @ 2.8% 396.63
Present value of next 10 years cash flows $4,845.22
NasdaqGS:LAMR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $817.31 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$17,609.63
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $17,609.63 ÷ (1 + 7.5%)10
$8,545.68
NasdaqGS:LAMR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,845.22 + $8,545.68
$13,390.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,390.90 / 100.00
$133.9
NasdaqGS:LAMR Discount to Share Price
Calculation Result
Value per share (USD) From above. $133.90
Current discount Discount to share price of $79.40
= -1 x ($79.40 - $133.90) / $133.90
40.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Lamar Advertising Company (REIT) is available for.
Intrinsic value
41%
Share price is $79.4 vs Future cash flow value of $133.9
Current Discount Checks
For Lamar Advertising Company (REIT) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Lamar Advertising Company (REIT)'s share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Lamar Advertising Company (REIT)'s share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Lamar Advertising Company (REIT)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Lamar Advertising Company (REIT)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LAMR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.44
NasdaqGS:LAMR Share Price ** NasdaqGS (2019-07-19) in USD $79.4
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 31.51x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Lamar Advertising Company (REIT).

NasdaqGS:LAMR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LAMR Share Price ÷ EPS (both in USD)

= 79.4 ÷ 3.44

23.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lamar Advertising Company (REIT) is good value based on earnings compared to the US REITs industry average.
  • Lamar Advertising Company (REIT) is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Lamar Advertising Company (REIT)'s expected growth come at a high price?
Raw Data
NasdaqGS:LAMR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
6.7%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:LAMR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.09x ÷ 6.7%

3.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lamar Advertising Company (REIT) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Lamar Advertising Company (REIT)'s assets?
Raw Data
NasdaqGS:LAMR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $11.10
NasdaqGS:LAMR Share Price * NasdaqGS (2019-07-19) in USD $79.4
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.8x
United States of America Market PB Ratio Median Figure of 5,247 Publicly-Listed Companies 1.79x
NasdaqGS:LAMR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LAMR Share Price ÷ Book Value per Share (both in USD)

= 79.4 ÷ 11.10

7.16x

* Primary Listing of Lamar Advertising Company (REIT).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Lamar Advertising Company (REIT) is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess Lamar Advertising Company (REIT)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Lamar Advertising Company (REIT) has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LAMR Future Performance

 How is Lamar Advertising Company (REIT) expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Lamar Advertising Company (REIT) expected to grow at an attractive rate?
  • Lamar Advertising Company (REIT)'s earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Lamar Advertising Company (REIT)'s earnings growth is positive but not above the United States of America market average.
  • Lamar Advertising Company (REIT)'s revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LAMR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LAMR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 6.7%
NasdaqGS:LAMR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.2%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 6%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LAMR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LAMR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,886 435 2
2020-12-31 1,814 546 404 6
2019-12-31 1,750 519 388 6
NasdaqGS:LAMR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,651 585 341
2018-12-31 1,627 565 305
2018-09-30 1,598 556 296
2018-06-30 1,579 528 299
2018-03-31 1,556 513 291
2017-12-31 1,541 507 317
2017-09-30 1,530 505 311
2017-06-30 1,518 506 299
2017-03-31 1,508 505 289
2016-12-31 1,500 522 298
2016-09-30 1,470 502 294
2016-06-30 1,433 500 295

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Lamar Advertising Company (REIT)'s earnings are expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
  • Lamar Advertising Company (REIT)'s revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LAMR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Lamar Advertising Company (REIT) Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LAMR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.31 4.39 4.23 2.00
2020-12-31 3.90 4.26 3.17 7.00
2019-12-31 3.85 4.09 3.69 7.00
NasdaqGS:LAMR Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.44
2018-12-31 3.09
2018-09-30 3.01
2018-06-30 3.04
2018-03-31 2.96
2017-12-31 3.24
2017-09-30 3.18
2017-06-30 3.07
2017-03-31 2.97
2016-12-31 3.07
2016-09-30 3.04
2016-06-30 3.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Lamar Advertising Company (REIT) is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Lamar Advertising Company (REIT)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Lamar Advertising Company (REIT) has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LAMR Past Performance

  How has Lamar Advertising Company (REIT) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Lamar Advertising Company (REIT)'s growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Lamar Advertising Company (REIT)'s year on year earnings growth rate has been positive over the past 5 years.
  • Lamar Advertising Company (REIT)'s 1-year earnings growth exceeds its 5-year average (17.4% vs 14.1%)
  • Lamar Advertising Company (REIT)'s earnings growth has exceeded the US REITs industry average in the past year (17.4% vs 16%).
Earnings and Revenue History
Lamar Advertising Company (REIT)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Lamar Advertising Company (REIT) Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LAMR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,650.65 341.07 377.33
2018-12-31 1,627.22 304.87 372.32
2018-09-30 1,597.80 296.34 358.76
2018-06-30 1,578.65 298.61 348.40
2018-03-31 1,555.92 290.58 341.22
2017-12-31 1,541.26 317.31 338.57
2017-09-30 1,529.50 310.67 344.53
2017-06-30 1,517.67 299.40 347.78
2017-03-31 1,508.12 288.92 351.64
2016-12-31 1,500.29 298.44 345.79
2016-09-30 1,469.55 294.45 338.95
2016-06-30 1,432.73 295.35 328.25
2016-03-31 1,389.45 272.80 322.16
2015-12-31 1,353.40 262.21 313.94
2015-09-30 1,334.12 393.56 310.30
2015-06-30 1,318.42 342.64 308.84
2015-03-31 1,304.60 298.71 301.51
2014-12-31 1,287.06 253.15 299.88
2014-09-30 1,270.72 55.46 287.91
2014-06-30 1,256.86 37.32 285.10
2014-03-31 1,254.17 45.20 284.01
2013-12-31 1,245.84 39.77 288.79
2013-09-30 1,227.83 35.24 288.70
2013-06-30 1,212.98 29.83 282.57
2013-03-31 1,190.10 20.08 276.56
2012-12-31 1,179.74 7.53 264.41
2012-09-30 1,165.64 8.61 260.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Lamar Advertising Company (REIT) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Lamar Advertising Company (REIT) used its assets more efficiently than the US REITs industry average last year based on Return on Assets.
  • Lamar Advertising Company (REIT)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Lamar Advertising Company (REIT)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Lamar Advertising Company (REIT) has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LAMR Health

 How is Lamar Advertising Company (REIT)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Lamar Advertising Company (REIT)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Lamar Advertising Company (REIT)'s short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Lamar Advertising Company (REIT)'s long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Lamar Advertising Company (REIT)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Lamar Advertising Company (REIT) Company Filings, last reported 3 months ago.

NasdaqGS:LAMR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,109.58 3,026.55 32.83
2018-12-31 1,131.78 2,888.69 21.49
2018-09-30 1,096.96 2,545.88 10.61
2018-06-30 1,073.52 2,564.90 19.59
2018-03-31 1,040.20 2,627.96 10.05
2017-12-31 1,103.49 2,556.69 115.47
2017-09-30 1,090.53 2,449.43 29.42
2017-06-30 1,071.11 2,391.85 42.88
2017-03-31 1,053.73 2,424.91 31.62
2016-12-31 1,069.53 2,349.18 35.53
2016-09-30 1,056.31 2,380.02 37.48
2016-06-30 1,039.73 2,392.68 41.74
2016-03-31 1,020.98 2,438.15 28.42
2015-12-31 1,021.06 1,891.45 22.33
2015-09-30 1,005.86 1,968.44 29.08
2015-06-30 983.43 1,940.44 27.46
2015-03-31 981.19 1,953.17 32.55
2014-12-31 981.47 1,899.90 26.04
2014-09-30 847.21 1,941.08 27.96
2014-06-30 885.66 1,927.87 34.42
2014-03-31 942.06 1,946.76 68.74
2013-12-31 932.95 1,938.80 33.21
2013-09-30 933.49 2,142.81 182.67
2013-06-30 909.20 2,148.92 118.88
2013-03-31 880.74 2,154.87 75.47
2012-12-31 861.63 2,160.85 58.91
2012-09-30 860.93 2,075.61 38.45
  • Lamar Advertising Company (REIT)'s level of debt (272.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (206.8% vs 272.8% today).
  • Debt is not well covered by operating cash flow (19.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess Lamar Advertising Company (REIT)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Lamar Advertising Company (REIT) has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LAMR Dividends

 What is Lamar Advertising Company (REIT)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.84%
Current annual income from Lamar Advertising Company (REIT) dividends. Estimated to be 5.07% next year.
If you bought $2,000 of Lamar Advertising Company (REIT) shares you are expected to receive $97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Lamar Advertising Company (REIT)'s pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Lamar Advertising Company (REIT)'s dividend is above the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LAMR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 185 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LAMR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 4.17 2.00
2020-12-31 4.13 4.00
2019-12-31 3.85 4.00
NasdaqGS:LAMR Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-30 3.840 4.767
2019-02-28 3.840 4.798
2018-11-30 3.680 5.055
2018-11-08 3.650 4.864
2018-05-17 3.650 4.990
2018-02-22 3.650 5.595
2017-11-28 3.320 4.581
2017-08-29 3.320 4.819
2017-05-25 3.320 4.745
2017-02-23 3.320 4.526
2016-12-08 3.040 4.217
2016-11-03 3.020 4.738
2016-08-09 3.020 4.778
2016-02-25 2.750 4.361
2016-02-23 2.750 5.025
2014-12-11 3.360 5.894
2014-08-27 3.320 6.510
2014-05-22 3.320 6.474

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Lamar Advertising Company (REIT) has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Lamar Advertising Company (REIT) only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Lamar Advertising Company (REIT)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Lamar Advertising Company (REIT)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Lamar Advertising Company (REIT) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Lamar Advertising Company (REIT) has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LAMR Management

 What is the CEO of Lamar Advertising Company (REIT)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sean Reilly
COMPENSATION $4,416,799
AGE 57
TENURE AS CEO 8.4 years
CEO Bio

Mr. Sean E. Reilly has been the Chief Executive Officer of Lamar Advertising Co. since February 21, 2011 and serves as the Chief Executive Officer at Lamar Media Corp. Mr. Reilly serves as Principal Executive Officer and President of American Signs, Inc. and Lamar OCI North Corporation. Mr. Reilly served as the Chief Operating Officer and President of Outdoor Division of Lamar Advertising Company from November 2001 to February 21, 2011 and also served as its Vice President of Mergers & Acquisitions until February 21, 2011. He served at Lamar Advertising Company as Vice President of Mergers and Acquisitions from 1987 to 1994. He served as the Chief Executive Officer of Wireless One Inc., from 1994 to May 1997 after which he rejoined Lamar Advertising Company as Vice President of Mergers and Acquisitions and President of its real estate division, TLC Properties Inc. and served as Chief Executive Officer and President of Wireless One Inc.'s predecessor ("Old Wireless One") since its founding in late 1993. He served as Vice Chairman of the Board of Wireless One Inc. since May 1997. He serves as Director of American Signs, Inc. He serves as Director of Lamar Media Corp., Managing Member of Interstate Logos, LLC. He serves as Director of Lamar OCI North Corporation. He serves as a Director of various Lamar companies in the Group. Mr. Reilly served as a Director of Wireless One Inc. since June 1995. He serves as Director of Lamar Media Corp. He served as a Director at Lamar Media Corp. from May 1989 to May 1996 and Lamar Advertising Company from May 1999 to May 2003. Mr. Reilly served in the Louisiana Legislature as a State Representative from March 1988 to January 1996. Mr. Reilly holds a B.A. from Harvard University in 1984 and a J.D. from Harvard Law School in 1989.

CEO Compensation
  • Sean's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Sean to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Lamar Advertising Company (REIT) management team in years:

19.4
Average Tenure
61
Average Age
  • The average tenure for the Lamar Advertising Company (REIT) management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Kevin Reilly

TITLE
Chairman & President
COMPENSATION
$4M
AGE
64
TENURE
30.4 yrs

Sean Reilly

TITLE
Chief Executive Officer
COMPENSATION
$4M
AGE
57
TENURE
8.4 yrs

Keith Istre

TITLE
Chief Financial & Accounting Officer and Treasurer
COMPENSATION
$3M
AGE
66
TENURE
30.4 yrs

Robert Switzer

TITLE
Vice President of Operations

Buster Kantrow

TITLE
Director of Investor Relations

James McIlwain

TITLE
Secretary & General Counsel

John Miller

TITLE
Senior Vice President of Sales & Sales Operations
TENURE
2.6 yrs

Thomas Teepell

TITLE
Chief Marketing Officer

Tammy Duncan

TITLE
Vice President of Human Resources

Brent McCoy

TITLE
Executive Vice President
AGE
58
Board of Directors Tenure

Average tenure and age of the Lamar Advertising Company (REIT) board of directors in years:

16.5
Average Tenure
63
Average Age
  • The average tenure for the Lamar Advertising Company (REIT) board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Stephen Mumblow

TITLE
Director
COMPENSATION
$158K
AGE
63
TENURE
20.5 yrs

Kevin Reilly

TITLE
Chairman & President
COMPENSATION
$4M
AGE
64

Tom Reifenheiser

TITLE
Director
COMPENSATION
$142K
AGE
83
TENURE
19.5 yrs

Johnny Koerner

TITLE
Director
COMPENSATION
$139K
AGE
76
TENURE
11.6 yrs

Anna Reilly Cullinan

TITLE
Director
COMPENSATION
$100K
AGE
55
TENURE
18.5 yrs

Wendell Reilly

TITLE
Director
COMPENSATION
$100K
AGE
62
TENURE
14.5 yrs

Marshall Loeb

TITLE
Director
AGE
57
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • Lamar Advertising Company (REIT) individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. May 19 Sell Keith Istre Individual 13. May 19 13. May 19 -16,294 $80.86 $-1,308,048
06. Mar 19 Sell Sean Reilly Individual 04. Mar 19 04. Mar 19 -57,606 $79.75 $-4,594,079
25. Feb 19 Sell Keith Istre Individual 22. Feb 19 22. Feb 19 -18,054 $76.68 $-1,384,467
X
Management checks
We assess Lamar Advertising Company (REIT)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Lamar Advertising Company (REIT) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LAMR News

Simply Wall St News

Read This Before Buying Lamar Advertising Company (REIT) (NASDAQ:LAMR) For Its Dividend

Dividend paying stocks like Lamar Advertising Company (REIT) (NASDAQ:LAMR) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Conclusion To summarise, shareholders should always check that Lamar Advertising Company (REIT)'s dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Lamar Advertising Company (REIT)'s is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow.

Simply Wall St -

Should You Investigate Lamar Advertising Company (REIT) (NASDAQ:LAMR) At US$79.25?

Let’s take a look at Lamar Advertising Company (REIT)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … Great news for investors – Lamar Advertising Company (REIT) is still trading at a fairly cheap price. … What’s more interesting is that, Lamar Advertising Company (REIT)’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future.

Simply Wall St -

Lamar Advertising Company (REIT) (NASDAQ:LAMR) Seems To Use Debt Quite Sensibly

NasdaqGS:LAMR Historical Debt, June 22nd 2019 A Look At Lamar Advertising Company (REIT)'s Liabilities We can see from the most recent balance sheet that Lamar Advertising Company (REIT) had liabilities of US$551.2m falling due within a year, and liabilities of US$4.13b due beyond that. … Either way, since Lamar Advertising Company (REIT) does have more debt than cash, it's worth keeping an eye on its balance sheet. … Lamar Advertising Company (REIT) has a debt to EBITDA ratio of 4.22 and its EBIT covered its interest expense 3.60 times.

Simply Wall St -

Here's Why Lamar Advertising Company (REIT) (NASDAQ:LAMR) Can Manage Its Debt Responsibly

We can see that Lamar Advertising Company (REIT) (NASDAQ:LAMR) does use debt in its business. … Since Lamar Advertising Company (REIT) does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View On our analysis Lamar Advertising Company (REIT)'s conversion of EBIT to free cash flow should signal that it won't have too much trouble with its debt.

Simply Wall St -

Lamar Advertising Company (REIT) (NASDAQ:LAMR) Goes Ex-Dividend In 2 Days

Check out our latest analysis for Lamar Advertising Company (REIT) Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … That's why we're glad to see Lamar Advertising Company (REIT)'s earnings per share growing, although as we saw, the company is paying out more than half of its earnings and cashflow - 80% and 93% respectively. … While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Lamar Advertising Company (REIT)'s dividend merits.

Simply Wall St -

Should You Be Impressed By Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) ROE?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Lamar Advertising Company (REIT): 31% = US$341m ÷ US$1.1b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Lamar Advertising Company (REIT) Have A Good ROE? … Combining Lamar Advertising Company (REIT)'s Debt And Its 31% Return On Equity We think Lamar Advertising Company (REIT) uses a lot of debt to boost returns, as it has a relatively high debt to equity ratio of 3.81.

Simply Wall St -

Does Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) CEO Pay Reflect Performance?

View our latest analysis for Lamar Advertising Company (REIT) How Does Sean Reilly's Compensation Compare With Similar Sized Companies? … According to our data, Lamar Advertising Company (REIT) has a market capitalization of US$8.2b, and pays its CEO total annual compensation worth US$4.4m. … Lamar Advertising Company (REIT) is currently paying its CEO below what is normal for companies of its size.

Simply Wall St -

Did Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) Share Price Deserve to Gain 65%?

To wit, the Lamar Advertising Company (REIT) share price has climbed 65% in five years, easily topping the market return of 48% (ignoring dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Lamar Advertising Company (REIT) managed to grow its earnings per share at 49% a year.

Simply Wall St -

Should You Be Worried About Insider Transactions At Lamar Advertising Company (REIT) (NASDAQ:LAMR)?

So before you buy or sell Lamar Advertising Company (REIT) (NASDAQ:LAMR), you may well want to know whether insiders have been buying or selling. … Lamar Advertising Company (REIT) Insider Transactions Over The Last Year. … All up, insiders sold more shares in Lamar Advertising Company (REIT) than they bought, over the last year

Simply Wall St -

What Are Analysts Saying About Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) Future?

Based on Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) earnings update on 31 December 2018, … with earnings expected to grow by 25% in the upcoming year … the past 5-year average growth rate of 18%.

Simply Wall St -

LAMR Company Info

Description

Founded in 1902, La mar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with approximately 360,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,100 displays.

Details
Name: Lamar Advertising Company (REIT)
LAMR
Exchange: NasdaqGS
Founded: 1902
$7,940,358,808
100,004,519
Website: http://www.lamar.com
Address: Lamar Advertising Company (REIT)
5321 Corporate Boulevard,
Baton Rouge,
Louisiana, 70808,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LAMR Class A Common Stock Nasdaq Global Select US USD 02. Aug 1996
DB 6LA Class A Common Stock Deutsche Boerse AG DE EUR 02. Aug 1996
Number of employees
Current staff
Staff numbers
3,600
Lamar Advertising Company (REIT) employees.
Industry
Specialized REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 02:34
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.