Lamar Advertising Co (LAMR) stock analysis

P/E above its 5-year median

Lamar Advertising's P/E of 29.7 is above its own 5-year median of 25.7.

P/E above the industry

Lamar Advertising's P/E of 29.7 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

Lamar Advertising's EV/EBITDA of 18.6 is above its 5-year median of 15.3.

P/S above the industry

Lamar Advertising's price-to-sales of 7.10 is above the Miscellaneous Investing median of 4.14 (book value is negative, so we use sales).

Trading above fair value

The share price of $162.62 is above our fair value estimate of $112.47.

Margin of safety under 20%

The price is 44.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 10.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 26.6% over the last twelve months, against a 5-year average of 19.3% a year.

Growing slower than the industry

Revenue grew 4.4% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance raised

Lamar Advertising raised its fiscal year 2026 diluted earnings per share outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 67.4% over the last twelve months, against 67.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 19.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 23.9% over the last twelve months, against a 5-year average of 21.8%.

Net margin above the industry

Lamar Advertising's net margin of 23.9% is above the Miscellaneous Investing median of 10.3%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.8% of total debt.

Interest not well covered

Operating income covers interest expense 4.5 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.63 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.05; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Lamar Advertising paid dividends worth 4.1% of the share price over the last twelve months.

Yield below Treasuries

The 4.1% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Lamar Advertising yields 4.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.