NasdaqGS:LAMR

Stock Analysis Report

Lamar Advertising Company (REIT)

Executive Summary

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 360,000 displays across the United States and Canada.

Snowflake

Fundamentals

Proven track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Lamar Advertising Company (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

LAMR

0.9%

US REITs

0.07%

US Market


1 Year Return

12.9%

LAMR

21.8%

US REITs

8.9%

US Market

Return vs Industry: LAMR underperformed the US REITs industry which returned 21.8% over the past year.

Return vs Market: LAMR exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

LAMRIndustryMarket
7 Day1.7%0.9%0.07%
30 Day4.0%2.2%-0.3%
90 Day3.5%7.9%-1.6%
1 Year18.6%12.9%27.0%21.8%11.3%8.9%
3 Year49.6%29.4%37.5%20.2%46.3%36.8%
5 Year108.1%62.7%65.5%30.4%62.1%44.3%

Price Volatility Vs. Market

How volatile is Lamar Advertising Company (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lamar Advertising Company (REIT) undervalued compared to its fair value and its price relative to the market?

38.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAMR ($83.22) is trading below our estimate of fair value ($134.45)

Significantly Below Fair Value: LAMR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LAMR is good value based on its PE Ratio (23.1x) compared to the REITs industry average (37.3x).

PE vs Market: LAMR is poor value based on its PE Ratio (23.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LAMR is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: LAMR is overvalued based on its PB Ratio (7.3x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAMR's forecast earnings growth (5.4% per year) is above the savings rate (2.7%).

Earnings vs Market: LAMR's earnings (5.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: LAMR's earnings are forecast to grow, but not significantly.

Revenue vs Market: LAMR's revenue (4.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LAMR's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAMR's Return on Equity is forecast to be high in 3 years time (36.5%)


Next Steps

Past Performance

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

10.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LAMR's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: LAMR's earnings growth over the past year (20.2%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: LAMR earnings growth over the past year (20.2%) exceeded the REITs industry 16.9%.


Return on Equity

High ROE: Whilst LAMR's Return on Equity (31.55%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: LAMR has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: LAMR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Lamar Advertising Company (REIT)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LAMR has a high level of physical assets or inventory.

Debt Coverage by Assets: LAMR's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: LAMR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LAMR has a sufficient allowance for bad loans.

Low Risk Liabilities: LAMR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LAMR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LAMR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LAMR has an appropriate level of bad loans.


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LAMR's dividend (4.61%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LAMR's dividend (4.61%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: Whilst dividend payments have been stable, LAMR has been paying a dividend for less than 10 years.

Growing Dividend: LAMR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.9%), LAMR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

19.7yrs

Average management tenure


CEO

Sean Reilly (57yo)

8.7yrs

Tenure

US$4,416,799

Compensation

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 Execut ...


CEO Compensation Analysis

Compensation vs. Market: Sean's total compensation ($USD0.00) is too low to compare against companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Sean's compensation has been consistent with company performance over the past year.


Management Age and Tenure

19.7yrs

Average Tenure

61yo

Average Age

Experienced Management: LAMR's management team is seasoned and experienced (19.7 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LAMR's board of directors are seasoned and experienced ( 14.8 years average tenure).


Insider Trading

Insider Buying: LAMR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$279,33518 Sep 19
Stephen Mumblow
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$79.81
SellUS$1,308,04815 May 19
Keith Istre
EntityIndividual
Role
Chief Financial Officer
Chief Financial & Accounting Officer and Treasurer
Shares16,294
Max PriceUS$80.86
SellUS$4,594,07906 Mar 19
Sean Reilly
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares57,606
Max PriceUS$79.75
SellUS$1,384,46725 Feb 19
Keith Istre
EntityIndividual
Role
Chief Financial Officer
Chief Financial & Accounting Officer and Treasurer
Shares18,054
Max PriceUS$76.68

Ownership Breakdown


Management Team

  • Kevin Reilly (64yo)

    Chairman & President

    • Tenure: 0yrs
    • Compensation: US$3.71m
  • Keith Istre (66yo)

    Chief Financial & Accounting Officer and Treasurer

    • Tenure: 30.7yrs
    • Compensation: US$3.13m
  • Sean Reilly (57yo)

    Chief Executive Officer

    • Tenure: 8.7yrs
    • Compensation: US$4.42m
  • James McIlwain

    Secretary & General Counsel

    • Tenure: 0yrs
  • John Miller

    Senior Vice President of Sales & Sales Operations

    • Tenure: 2.8yrs
  • Brent McCoy (58yo)

    Executive Vice President

    • Tenure: 0yrs
  • Robert Switzer

    Vice President of Operations

    • Tenure: 0yrs
  • Thomas Teepell

    Chief Marketing Officer

    • Tenure: 0yrs
  • Tammy Duncan

    Vice President of Human Resources

    • Tenure: 0yrs
  • Buster Kantrow

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Kevin Reilly (64yo)

    Chairman & President

    • Tenure: 0yrs
    • Compensation: US$3.71m
  • Stephen Mumblow (63yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$158.45k
  • Johnny Koerner (76yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$139.43k
  • Marshall Loeb (57yo)

    Director

    • Tenure: 1.4yrs
  • Tom Reifenheiser (83yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$142.43k
  • Anna Reilly Cullinan (55yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$99.94k
  • Wendell Reilly (62yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$99.94k
  • Elizabeth Thompson (55yo)

    Director

    • Tenure: 0.4yrs

Company Information

Lamar Advertising Company (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lamar Advertising Company (REIT)
  • Ticker: LAMR
  • Exchange: NasdaqGS
  • Founded: 1902
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$8.353b
  • Shares outstanding: 100.38m
  • Website: https://www.lamar.com

Number of Employees


Location

  • Lamar Advertising Company (REIT)
  • 5321 Corporate Boulevard
  • Baton Rouge
  • Louisiana
  • 70808
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LAMRNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDAug 1996
6LADB (Deutsche Boerse AG)YesClass A Common StockDEEURAug 1996

Biography

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 360,000 displays across the United States and Canada. Lamar offers advertis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:39
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.