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.

Rewards

Trading at 40.9% below its fair value

Earnings are forecast to grow 6.77% per year

Earnings grew by 23.1% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Solid track record and fair value.


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

Stable Share Price: LAMR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

LAMR

2.6%

US REITs

2.0%

US Market


1 Year Return

24.2%

LAMR

18.5%

US REITs

23.5%

US Market

Return vs Industry: LAMR exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: LAMR matched the US Market which returned 24.4% over the past year.


Shareholder returns

LAMRIndustryMarket
7 Day2.6%2.6%2.0%
30 Day6.2%3.9%4.3%
90 Day11.3%-0.1%12.2%
1 Year30.2%24.2%23.4%18.5%26.1%23.5%
3 Year43.1%23.8%35.5%18.5%53.1%43.2%
5 Year109.3%64.3%46.5%16.2%75.5%56.1%

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?

39.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAMR ($90.15) is trading below our estimate of fair value ($152.57)

Significantly Below Fair Value: LAMR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAMR is good value based on its PE Ratio (24.7x) compared to the REITs industry average (37.8x).

PE vs Market: LAMR is poor value based on its PE Ratio (24.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: LAMR is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: LAMR is overvalued based on its PB Ratio (7.8x) compared to the US REITs industry average (2x).


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?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAMR's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: LAMR's earnings (6.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: LAMR's revenue (3.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: LAMR's revenue (3.8% 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 (37%)


Next Steps

Past Performance

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

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAMR has high quality earnings.

Growing Profit Margin: LAMR's current net profit margins (21.2%) are higher than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: LAMR's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: LAMR's earnings growth over the past year (23.1%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: LAMR earnings growth over the past year (23.1%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: Whilst LAMR's Return on Equity (31.26%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


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?

4.17%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: LAMR's dividend (4.26%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: LAMR's dividend (4.26%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.1%), 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?

3.1yrs

Average management tenure


CEO

Sean Reilly (57yo)

8.9yrs

Tenure

US$5,559,110

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 ($USD5.56M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Sean's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

60.5yo

Average Age

Experienced Management: LAMR's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

15.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LAMR's board of directors are seasoned and experienced ( 15 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
Senior Key Executive
Chief Financial Officer Emeritus
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
Senior Key Executive
Chief Financial Officer Emeritus
Shares18,054
Max PriceUS$76.68

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kevin Reilly (64yo)

    Chairman & President

    • Compensation: US$4.55m
  • Keith Istre (66yo)

    Chief Financial Officer Emeritus

    • Tenure: 0.3yrs
    • Compensation: US$4.01m
  • Sean Reilly (57yo)

    Chief Executive Officer

    • Tenure: 8.9yrs
    • Compensation: US$5.56m
  • James McIlwain

    Secretary & General Counsel

    • John Miller

      Senior Vice President of Sales & Sales Operations

      • Tenure: 3.1yrs
    • Robert Switzer

      Vice President of Operations

      • Thomas Teepell

        Chief Marketing Officer

        • Tammy Duncan

          Vice President of Human Resources

          • Jay Johnson (42yo)

            CFO & Treasurer

            • Tenure: 0.3yrs
          • Buster Kantrow

            Director of Investor Relations


            Board Members

            • Kevin Reilly (64yo)

              Chairman & President

              • Compensation: US$4.55m
            • Stephen Mumblow (63yo)

              Independent Director

              • Tenure: 21yrs
              • Compensation: US$158.50k
            • Johnny Koerner (76yo)

              Independent Director

              • Tenure: 12.1yrs
              • Compensation: US$141.00k
            • Marshall Loeb (57yo)

              Director

              • Tenure: 1.7yrs
              • Compensation: US$91.33k
            • Tom Reifenheiser (83yo)

              Independent Director

              • Tenure: 20yrs
              • Compensation: US$142.50k
            • Anna Reilly Cullinan (55yo)

              Director

              • Tenure: 19yrs
              • Compensation: US$100.00k
            • Wendell Reilly (62yo)

              Director

              • Tenure: 15yrs
              • Compensation: US$100.00k
            • Elizabeth Thompson (55yo)

              Director

              • Tenure: 0.7yrs

            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$9.282b
            • Shares outstanding: 100.43m
            • 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 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 3,400 displays. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/17 23:44
            End of Day Share Price2020/01/17 00:00
            Earnings2019/09/30
            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.