• Lamar vs Outfront vs CCO vs the market.

    Lamar has outperformed the S&P 500, the S&P Media Index and the REIT Index over the past four years.  Outfront and Clear Channel Outdoor have underperformed over the same time frame.  Lamar is blue, Outfront is purple and Clear Channel Outdoor is yellow in the chart below.

    Source of Chart: Outfront Media 2017 10k

    What explains Lamar’s superior performance?

    • Lamar has grown faster than Outfront and Clear Channel.  Lamar’s revenues grew 5.5%/year from 2013-2017 versus 4.1% for Outfront. Clear Channel Outdoor revenues have been shrinking since 2013 due to asset sales.
    • Lamar has higher cashflow margins.  Lamar’s cashflow margin (EBIDTA/Revenue) was 43% during 2017 versus 28% for Outfront and 20% for Clear Channel Outdoor or the first 9 mos of 2017.
    • Lamar and Outfront are not in financial difficulty.  Lamar and Outfront had moderate Debt/Cashflow of 3.6 and 4.8, respectively, as of the end of 2017, versus Debt/Cashflow of 9.0 at Clear Channel Outdoor.  Concern about Clear Channel Outdoor’s debt plus concern about the uncertainty created by the pending bankruptcy of Clear Channel Outdoor’s parent iHeart Media is depressing Clear Channel Outdoor stock.


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