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1. Company Snapshot

1.a. Company Description

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 352,000 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 approximately 3,800 displays.

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1.b. Last Insights on LAMR

Lamar Advertising Company's recent performance was driven by strong Q3 results, with net revenues of $585.5 million and adjusted EBITDA of $280.8 million. The company's quarterly funds from operations (FFO) of $2.2 per share beat estimates, and it reaffirmed its 2025 outlook for steady growth. A $1.1 billion refinancing transaction strengthened its balance sheet and improved liquidity. Additionally, institutional investors such as Sumitomo Mitsui Trust Group Inc. increased their holdings, while others like Oppenheimer Asset Management Inc. and AlphaQuest LLC reduced theirs.

1.c. Company Highlights

2. Lamar Advertising's Q3 2025 Earnings: Steady Growth and Positive Outlook

Lamar Advertising reported consolidated revenue growth of 2.9% on an acquisition-adjusted basis, driven by a 5.5% increase in national/programmatic revenue and a 1.6% rise in local revenue. The company's digital billing grew 5%, representing 31% of billboard billing. Adjusted EBITDA was $280.8 million, up 3.5% from 2024, and diluted AFFO per share increased 2.3% to $2.20, beating analyst estimates of $2.14. The actual EPS came out at $2.2, surpassing expectations.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth Driven by National/Programmatic: Acquisition-adjusted revenue rose 2.9%, with national/programmatic up 5.5% vs. local growth of 1.6%.
  • Digital Billing Expansion: Digital revenue grew 5%, accounting for 31% of total billboard billing.
  • Adjusted EBITDA & AFFO Growth: Adjusted EBITDA hit $280.8M (+3.5% YoY); diluted AFFO per share rose 2.3% to $2.20.
  • Capital Activity & Acquisition Spend: $300M full-year acquisition budget (excluding $175M for Verde); raised $1.1B via debt and capital markets.

Acquisition Activity and Capital Market Transactions

Lamar's acquisition spend for the full year is expected to be around $300 million, with $175 million excluding the Verde acquisition. The company raised $1.1 billion through capital market transactions, including a $700 million Term Loan B and $400 million in senior notes. This influx of capital is expected to support the company's growth initiatives.

Outlook and Guidance

Lamar affirmed its full-year guidance, expecting AFFO to finish the year between $8.10 and $8.20 per diluted share and a regular dividend of $6.20 per share. The company is optimistic about 2026, citing stronger pacings, political tailwinds, and growth drivers from its acquisition activity. As Jay Johnson mentioned, the second and third quarters are expected to see a nice bump, driven by these factors.

Segment Performance and Growth Drivers

The company's national accounts are showing signs of turnaround, with conversations feeling better and good momentum exiting 2025 and carrying into 2026, as stated by Sean Reilly. Lamar specializes in the smaller, middle-market airport space and will continue to pursue airport opportunities in that arena, which has been a growth vehicle for the company.

Valuation and Estimates

Analysts estimate next year's revenue growth at 4.3%. With a P/E Ratio of 30.21 and an EV/EBITDA of 13.49, the market is pricing in a certain level of growth. The Dividend Yield stands at 4.86%, providing a relatively stable return for investors. The company's ROE is 43.13%, indicating a strong return on equity. Overall, Lamar Advertising's steady growth and positive outlook make it an attractive investment opportunity.

3. NewsRoom

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Warren Buffett Is Selling Bank of America Stock and Buying This High-Yield Investment Instead

Dec -02

Source: fool.com

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Creative Planning Has $1.95 Million Stock Position in Lamar Advertising Company $LAMR

Nov -26

Source: defenseworld.net

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Allworth Financial LP Increases Stock Holdings in Lamar Advertising Company $LAMR

Nov -19

Source: defenseworld.net

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Lamar Advertising Company (LAMR) Presents at Wells Fargo's 9th Annual TMT Summit Transcript

Nov -18

Source: seekingalpha.com

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3 No-Brainer Warren Buffett Stocks to Buy Right Now

Nov -18

Source: fool.com

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ABN Amro Investment Solutions Buys New Shares in Lamar Advertising Company $LAMR

Nov -14

Source: defenseworld.net

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Lamar Advertising to Appear at the 9th Annual Wells Fargo TMT Conference

Nov -10

Source: globenewswire.com

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LAMR Beats Q3 AFFO Estimates, Reaffirms 2025 Outlook for Steady Growth

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.58%)

6. Segments

Billboard Advertising

Expected Growth: 3.5%

Lamar Advertising Company's 3.5% growth in Billboard Advertising is driven by increasing demand for out-of-home advertising, growing urbanization, and rising consumer spending. Additionally, advancements in digital billboard technology and targeted advertising capabilities are attracting more advertisers, further fueling growth.

Transit Advertising

Expected Growth: 4.5%

Lamar Advertising Company's 4.5% growth in Transit Advertising is driven by increasing urbanization, rising commuter traffic, and growing demand for outdoor advertising. Additionally, advancements in digital displays and mobile targeting capabilities enhance the segment's appeal, attracting more advertisers. Furthermore, strategic partnerships and acquisitions expand Lamar's reach, contributing to the segment's growth.

Logo Advertising

Expected Growth: 3.8%

Lamar Advertising's 3.8% growth in Logo Advertising is driven by increasing demand for outdoor advertising, growing popularity of digital out-of-home ads, and strategic acquisitions. Additionally, the company's focus on expanding its digital network, improving operational efficiency, and enhancing customer experience also contribute to its growth.

7. Detailed Products

Billboards

Large, outdoor advertising structures that display static or digital advertisements to reach a wide audience

Transit Shelters

Advertising displays located at bus shelters, benches, and other transit-related structures

Mall Displays

Indoor advertising displays located in shopping malls and other retail environments

Airport Displays

Advertising displays located in airports, targeting travelers and business professionals

Digital Billboards

Electronic displays that show rotating advertisements, often located in high-traffic areas

Wrapped Vehicles

Advertising displays wrapped around vehicles, such as buses, taxis, or cars

8. Lamar Advertising Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lamar Advertising Company is medium because while there are alternative advertising options available, such as online advertising, Lamar's outdoor advertising offerings are still in high demand.

Bargaining Power Of Customers

The bargaining power of customers for Lamar Advertising Company is low because the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Lamar Advertising Company is low because the company has a diverse supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants for Lamar Advertising Company is low because of the high barriers to entry in the outdoor advertising industry, including the need for significant capital investments and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Lamar Advertising Company is high because of the competitive nature of the outdoor advertising industry, with several large players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 74.50%
Debt Cost 3.95%
Equity Weight 25.50%
Equity Cost 11.51%
WACC 5.87%
Leverage 292.10%

11. Quality Control: Lamar Advertising Company passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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EPR Properties

A-Score: 7.1/10

Value: 5.2

Growth: 3.9

Quality: 8.1

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Hannon Armstrong

A-Score: 6.5/10

Value: 9.1

Growth: 4.4

Quality: 6.4

Yield: 10.0

Momentum: 3.5

Volatility: 5.7

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Rayonier

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 7.7

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Gaming and Leisure Properties

A-Score: 6.4/10

Value: 3.8

Growth: 4.4

Quality: 6.5

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Weyerhaeuser

A-Score: 4.8/10

Value: 2.3

Growth: 3.0

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

132.85$

Current Price

132.85$

Potential

-0.00%

Expected Cash-Flows