OUTFRONT Media Inc. (OUT) stock analysis

P/E above its 5-year median

OUTFRONT Media's P/E of 23.1 is above its own 5-year median of 21.6.

P/E below the industry

OUTFRONT Media's P/E of 23.1 is below the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

OUTFRONT Media's EV/EBITDA of 15.0 is above its 5-year median of 13.4.

P/B above the industry

OUTFRONT Media's price-to-book of 8.40 is above the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $33.67 is above our fair value estimate of $25.84.

Margin of safety under 20%

The price is 30.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 9.1% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 41.4% over the last twelve months and averaged 6.5% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 13.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

OUTFRONT Media's return on equity of 41.4% is above the Miscellaneous Investing median of 3.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 13.1% over the last twelve months, against a 5-year average of 1.9%.

Net margin above the industry

OUTFRONT Media's net margin of 13.1% is above the Miscellaneous Investing median of 10.3%.

High debt

Debt is 359% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 277% five years ago to 359%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.0% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

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

Current assets are 0.72 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

OUTFRONT Media paid dividends worth 3.7% of the share price over the last twelve months.

Yield below Treasuries

The 3.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; OUTFRONT Media yields 3.7%.

Dividend was cut

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

Covered by earnings

Dividends take 84.0% of net income.

Covered by free cash flow

Dividends take 63.0% of free cash flow.