Lamar Advertising Price To Sales vs. Price To Earning

LAMR Stock  USD 133.62  0.54  0.41%   
Considering the key profitability indicators obtained from Lamar Advertising's historical financial statements, Lamar Advertising is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Lamar Advertising's ability to earn profits and add value for shareholders.

Lamar Advertising Price To Sales Ratio

5.86

At this time, Lamar Advertising's Price To Sales Ratio is relatively stable compared to the past year. As of 11/29/2024, Days Sales Outstanding is likely to grow to 58.19, while Operating Cash Flow Sales Ratio is likely to drop 0.23. At this time, Lamar Advertising's Operating Income is relatively stable compared to the past year. As of 11/29/2024, Income Before Tax is likely to grow to about 531.9 M, though Total Other Income Expense Net is likely to grow to (160.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.520.6699
Significantly Down
Pretty Stable
Net Profit Margin0.250.2348
Notably Up
Slightly volatile
Operating Profit Margin0.340.32
Notably Up
Slightly volatile
Pretax Profit Margin0.250.24
Sufficiently Up
Slightly volatile
Return On Assets0.07930.0755
Sufficiently Up
Slightly volatile
For Lamar Advertising profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lamar Advertising to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lamar Advertising utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lamar Advertising's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lamar Advertising over time as well as its relative position and ranking within its peers.
  

Lamar Advertising's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
To learn how to invest in Lamar Stock, please use our How to Invest in Lamar Advertising guide.
Is Other Specialized REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lamar Advertising. If investors know Lamar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lamar Advertising listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.051
Dividend Share
5.25
Earnings Share
5
Revenue Per Share
21.414
Quarterly Revenue Growth
0.043
The market value of Lamar Advertising is measured differently than its book value, which is the value of Lamar that is recorded on the company's balance sheet. Investors also form their own opinion of Lamar Advertising's value that differs from its market value or its book value, called intrinsic value, which is Lamar Advertising's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lamar Advertising's market value can be influenced by many factors that don't directly affect Lamar Advertising's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lamar Advertising's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lamar Advertising is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lamar Advertising's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Lamar Advertising Price To Earning vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lamar Advertising's current stock value. Our valuation model uses many indicators to compare Lamar Advertising value to that of its competitors to determine the firm's financial worth.
Lamar Advertising is rated fifth overall in price to sales category among its peers. It is rated below average in price to earning category among its peers reporting about  6.70  of Price To Earning per Price To Sales. At this time, Lamar Advertising's Price To Sales Ratio is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Lamar Advertising by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Lamar Price To Earning vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Lamar Advertising

P/S

 = 

MV Per Share

Revenue Per Share

 = 
6.25 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Lamar Advertising

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
41.87 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Lamar Price To Earning Comparison

Lamar Advertising is currently under evaluation in price to earning category among its peers.

Lamar Advertising Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lamar Advertising, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lamar Advertising will eventually generate negative long term returns. The profitability progress is the general direction of Lamar Advertising's change in net profit over the period of time. It can combine multiple indicators of Lamar Advertising, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-428 K-449.4 K
Operating Income675.4 M709.2 M
Income Before Tax506.6 M531.9 M
Total Other Income Expense Net-168.8 M-160.4 M
Net Income495.8 M520.6 M
Income Tax Expense9.8 M10.3 M
Net Income Applicable To Common Shares504 M529.2 M
Net Income From Continuing Ops413.6 M333.4 M
Non Operating Income Net Other-28.1 M-26.7 M
Interest Income2.1 MM
Net Interest Income-165.7 M-174 M
Change To Netincome17.6 M29.5 M
Net Income Per Share 4.86  5.11 
Income Quality 1.58  1.50 
Net Income Per E B T 0.98  0.64 

Lamar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lamar Advertising. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lamar Advertising position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lamar Advertising's important profitability drivers and their relationship over time.

Use Lamar Advertising in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lamar Advertising position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lamar Advertising will appreciate offsetting losses from the drop in the long position's value.

Lamar Advertising Pair Trading

Lamar Advertising Pair Trading Analysis

The ability to find closely correlated positions to Lamar Advertising could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lamar Advertising when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lamar Advertising - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lamar Advertising to buy it.
The correlation of Lamar Advertising is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lamar Advertising moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lamar Advertising moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lamar Advertising can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for Lamar Stock Analysis

When running Lamar Advertising's price analysis, check to measure Lamar Advertising's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lamar Advertising is operating at the current time. Most of Lamar Advertising's value examination focuses on studying past and present price action to predict the probability of Lamar Advertising's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lamar Advertising's price. Additionally, you may evaluate how the addition of Lamar Advertising to your portfolios can decrease your overall portfolio volatility.