(OUT) Outfront Media - Overview
Sector: Real Estate | Industry: REIT - Specialty | Exchange: NYSE (USA) | Market Cap: 5.822m USD | Total Return: 104.3% in 12m
Industry Rotation: -1.7
Avg Turnover: 41.0M
EPS Trend: 7.7%
Qual. Beats: 0
Rev. Trend: 5.1%
Qual. Beats: 1
Warnings
High Debt/EBITDA (8.5) with thin interest coverage (1.2)
Altman Z'' -0.94 < 1.0 - financial distress zone
Tailwinds
Leader, Confidence
OUTFRONT Media Inc. (NYSE: OUT) is a major out-of-home (OOH) media provider in the United States, specializing in billboards, digital displays, and transit system advertising. The company operates as a Real Estate Investment Trust (REIT), a structure common in the OOH sector where companies lease or own physical space to generate recurring rental income from advertisers.
The firm utilizes an in-house creative agency, OUTFRONT STUDIOS, and an innovation division, XLabs, to integrate data-driven technology into physical marketing campaigns. Unlike traditional digital advertising, OOH media offers high visibility in high-traffic urban environments and cannot be skipped or blocked by consumers.
Investors may find ValueRays quantitative analysis useful for evaluating this REITs long-term dividend sustainability.
- Digital billboard conversions drive higher rental yields and advertising revenue margins
- Transit advertising recovery depends on metropolitan public transportation ridership trends
- Federal Reserve interest rate shifts impact REIT financing and debt servicing costs
- National advertising spend fluctuations directly influence billboard occupancy and pricing power
- Municipal transit contract renewals pose risks to long-term revenue stability and margins
| Net Income: 186.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.39 > 1.0 |
| NWC/Revenue: 11.87% < 20% (prev -11.50%; Δ 23.37% < -1%) |
| CFO/TA 0.07 > 3% & CFO 349.3m > Net Income 186.7m |
| Net Debt (4.10b) to EBITDA (484.4m): 8.46 < 3 |
| Current Ratio: 2.24 > 1.5 & < 3 |
| Outstanding Shares: last quarter (177.1m) vs 12m ago 6.43% < -2% |
| Gross Margin: 37.72% > 18% (prev 0.44%; Δ 3.73k% > 0.5%) |
| Asset Turnover: 36.08% > 50% (prev 35.33%; Δ 0.75% > 0%) |
| Interest Coverage Ratio: 1.16 > 6 (EBITDA TTM 484.4m / Interest Expense TTM 291.4m) |
| A: 0.04 (Total Current Assets 401.5m - Total Current Liabilities 179.5m) / Total Assets 5.24b |
| B: -0.37 (Retained Earnings -1.94b / Total Assets 5.24b) |
| C: 0.07 (EBIT TTM 337.3m / Avg Total Assets 5.19b) |
| D: -0.43 (Book Value of Equity -1.94b / Total Liabilities 4.55b) |
| Altman-Z'' Score: -0.94 = CCC |
| DSRI: 1.37 (Receivables 365.7m/258.5m, Revenue 1.87b/1.81b) |
| GMI: 1.17 (GM 37.72% / 44.13%) |
| AQI: 0.97 (AQ_t 0.50 / AQ_t-1 0.52) |
| SGI: 1.03 (Revenue 1.87b / 1.81b) |
| TATA: -0.03 (NI 186.7m - CFO 349.3m) / TA 5.24b) |
| Beneish M-Score: -2.59 (Cap -4..+1) = A |
Over the past week, the price has changed by -7.05%, over one month by +5.00%, over three months by +26.89% and over the past year by +104.25%.
- StrongBuy: 2
- Buy: 1
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 35.3 | 12.1% |
P/E Forward = 27.1003
P/S = 3.1126
P/B = 9.0167
P/EG = 0.3854
Revenue TTM = 1.87b USD
EBIT TTM = 337.3m USD
EBITDA TTM = 484.4m USD
Long Term Debt = 2.58b USD (from longTermDebt, last fiscal year)
Short Term Debt = 179.5m USD (from shortTermDebt, last quarter)
Debt = 4.16b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.10b USD (from netDebt column, last quarter)
Enterprise Value = 9.92b USD (5.82b + Debt 4.16b - CCE 67.2m)
Interest Coverage Ratio = 1.16 (Ebit TTM 337.3m / Interest Expense TTM 291.4m)
EV/FCF = 41.67x (Enterprise Value 9.92b / FCF TTM 238.0m)
FCF Yield = 2.40% (FCF TTM 238.0m / Enterprise Value 9.92b)
FCF Margin = 12.72% (FCF TTM 238.0m / Revenue TTM 1.87b)
Net Margin = 9.98% (Net Income TTM 186.7m / Revenue TTM 1.87b)
Gross Margin = 37.72% ((Revenue TTM 1.87b - Cost of Revenue TTM 1.17b) / Revenue TTM)
Gross Margin QoQ = 29.40% (prev 38.13%)
Tobins Q-Ratio = 1.89 (Enterprise Value 9.92b / Total Assets 5.24b)
Interest Expense / Debt = 0.86% (Interest Expense 36.0m / Debt 4.16b)
Taxrate = 2.03% (400k / 19.7m)
NOPAT = 330.5m (EBIT 337.3m * (1 - 2.03%))
Current Ratio = 2.24 (Total Current Assets 401.5m / Total Current Liabilities 179.5m)
Debt / Equity = 6.29 (Debt 4.16b / totalStockholderEquity, last quarter 661.9m)
Debt / EBITDA = 8.46 (Net Debt 4.10b / EBITDA 484.4m)
Debt / FCF = 17.21 (Net Debt 4.10b / FCF TTM 238.0m)
Total Stockholder Equity = 673.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.60% (Net Income 186.7m / Total Assets 5.24b)
RoE = 27.72% (Net Income TTM 186.7m / Total Stockholder Equity 673.4m)
RoCE = 10.36% (EBIT 337.3m / Capital Employed (Equity 673.4m + L.T.Debt 2.58b))
RoIC = 10.42% (NOPAT 330.5m / Invested Capital 3.17b)
WACC = 5.85% (E(5.82b)/V(9.99b) * Re(9.43%) + D(4.16b)/V(9.99b) * Rd(0.86%) * (1-Tc(0.02)))
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.33 | Cagr: 0.97%
[DCF] Terminal Value 87.38% ; FCFF base≈228.1m ; Y1≈255.0m ; Y5≈338.1m
[DCF] Fair Price = 33.13 (EV 9.93b - Net Debt 4.10b = Equity 5.83b / Shares 176.1m; r=6.0% [WACC]; 5y FCF grow 13.64% → 3.0% )
EPS Correlation: 7.69 | EPS CAGR: -21.40% | SUE: 0.66 | # QB: 0
Revenue Correlation: 5.15 | Revenue CAGR: -1.24% | SUE: 1.92 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.37 | Chg30d=+25.55% | Revisions=+20% | Analysts=4
EPS next Quarter (2026-09-30): EPS=0.41 | Chg30d=+5.26% | Revisions=+20% | Analysts=4
EPS current Year (2026-12-31): EPS=1.33 | Chg30d=+5.20% | Revisions=+20% | GrowthEPS=+35.9% | GrowthRev=+8.0%
EPS next Year (2027-12-31): EPS=1.39 | Chg30d=+10.73% | Revisions=+20% | GrowthEPS=+4.8% | GrowthRev=+1.9%
[Analyst] Revisions Ratio: +20%