GICS Sector : Real Estate
Outfront Media Inc.leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America.Through its technology platform, Outfront Media Inc.
OUTFRONT Media reported a 3.5% increase in consolidated revenues and a 17% rise in OIBDA to $137 million for the third quarter of 2025. Adjusted Funds From Operations (AFFO) grew 24% to $100 million. Earnings per share (EPS) came in at $0.57, beating estimates of $0.5. The revenue growth was largely driven by a 24% increase in transit revenue, with the New York MTA segment surging 37%. Billboard revenues, however, declined 2.2% due to exited contracts in New York and LA, but would have grown over 1% excluding these contracts. Digital revenues increased by over 12% and now represent 35.4% of total revenues. The OIBDA margin expanded, and the billboard adjusted OIBDA margin rose 170 basis points to 39.5%.
Publication Date: Nov -10
The company announced a strategic partnership with AWS to enhance the planning, buying, and measurement of its inventory. This move is expected to drive further growth in its digital segment. OUTFRONT's transit business has seen significant momentum, driven by a dedicated growth team that has attracted major brands like Capital One, Chase, and Unilever. The company views the transit medium as particularly exciting for these brands due to its specificity. As the company's CFO mentioned, the focus on sales, marketing, product marketing, and customer success has been key to this growth.
The company expects fourth-quarter revenue growth to slightly improve from Q3, with consolidated revenues projected to grow in the low to mid-single digits. OUTFRONT is optimistic about its relationships with major studios and its ability to gain share from competitors in the entertainment category, which is expected to recover in 2026. The World Cup presents an opportunity for brand experiences, with significant enterprise brands committing to sports sponsorship. The company generated $7-8 million in incremental revenue from temporary permitting for the Super Bowl and plans to extend this practice.
OUTFRONT Media's current valuation metrics indicate a P/E Ratio of 27.09 and a Dividend Yield of 8.18%. The EV/EBITDA ratio stands at 21.31, suggesting that the company's valuation is relatively high. However, the dividend yield is attractive, indicating a potentially stable return for investors. The net leverage has improved to 4.7x, and the dividend was maintained at $0.30. Analysts estimate next year's revenue growth at 3.0%, which may not be sufficient to justify the current valuation multiples.
OUTFRONT Expands Sports Marketing Footprint as Official Out-of-Home Media Partner of the ABB FIA Formula E World Championship
Feb -03
OUT or PSA: Which Is the Better Value Stock Right Now?
Jan -29
Campbell & CO Investment Adviser LLC Sells 22,265 Shares of OUTFRONT Media Inc. $OUT
Jan -24
Outfront Media Surges 40% in One Year, Then Gets Cut Loose Despite 'Exceptional Performance'
Jan -23
OUTFRONT Media To Report 2025 Fourth Quarter and Full Year Results on February 25, 2026
Jan -21
5 Reasons to Add OUTFRONT Media Stock to Your Portfolio Now
Jan -16
Is OUTFRONT Media Stock Still a Buy After Its 36% Rally?
Jan -14
U.S. Equity REITs Trade At Median 15% Discount To Analyst Price Targets
Jan -10
Outfront Media Inc.'s 2.0% growth in the United States Media segment is driven by increasing demand for outdoor advertising, particularly in urban areas, and the company's strategic expansion into digital displays. Additionally, growing consumer spending and a rebound in travel and tourism are contributing to the segment's growth.
Outfront Media Inc.'s 2.0% growth in 'Other' segment is driven by increasing demand for digital out-of-home advertising, expansion of its mobile and digital product offerings, and strategic partnerships with key brands. Additionally, the company's focus on data-driven advertising solutions and growing presence in high-growth markets also contribute to this growth.
Large format outdoor advertising displays that target high-traffic areas, such as highways, city centers, and shopping districts.
Advertising displays located at bus shelters, train stations, and other transit hubs, targeting commuters and pedestrians.
Indoor and outdoor advertising displays located in shopping malls, targeting shoppers and families.
Advertising displays located in airport terminals, targeting travelers and business professionals.
Digital displays located in high-traffic areas, such as malls, airports, and city centers, offering dynamic and interactive advertising.
Large, high-impact displays located in iconic locations, such as Times Square or major intersections.
Outfront Media Inc. operates in the outdoor advertising industry, which has a moderate threat of substitutes. While there are alternative forms of advertising, such as online and print media, outdoor advertising provides a unique platform for reaching a large audience.
Outfront Media Inc. has a diverse customer base, including national and local advertisers. While some customers may have bargaining power, the company's large scale and diversified customer base mitigate this risk.
Outfront Media Inc. has a strong negotiating position with its suppliers, including landlords and municipalities. The company's scale and long-term contracts reduce its dependence on individual suppliers.
The outdoor advertising industry has high barriers to entry, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants and provides a competitive advantage to established players like Outfront Media Inc.
The outdoor advertising industry is highly competitive, with several large players competing for market share. Outfront Media Inc. faces intense competition from companies like Clear Channel Outdoor and Lamar Advertising.
| Value | |
|---|---|
| Debt Weight | 80.08% |
| Debt Cost | 3.95% |
| Equity Weight | 19.92% |
| Equity Cost | 13.28% |
| WACC | 5.81% |
| Leverage | 402.09% |
Value: 10.0
Growth: 4.8
Quality: 7.6
Yield: 9.0
Momentum: 7.0
Volatility: 5.7
1-Year Total Return ->
Value: 5.7
Growth: 5.4
Quality: 7.7
Yield: 10.0
Momentum: 2.0
Volatility: 8.7
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Value: 2.6
Growth: 4.7
Quality: 4.8
Yield: 9.0
Momentum: 7.5
Volatility: 5.7
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Value: 4.1
Growth: 6.9
Quality: 6.8
Yield: 3.0
Momentum: 4.0
Volatility: 9.0
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Value: 2.4
Growth: 2.1
Quality: 3.6
Yield: 9.0
Momentum: 4.5
Volatility: 8.3
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Value: 2.4
Growth: 3.0
Quality: 3.7
Yield: 8.0
Momentum: 2.0
Volatility: 8.3
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