| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 30 | 27.2x | 17.8x | Bottom tier | |
Growth | 45 | 4.4% | 7.1% | Around median | |
Quality | 92 | 12.5% | 4.5% | Top tier | |
Safety | 45 | 5.5x | 2.6x | Around median | |
Capital Return | 60 | 4.39% | 2.12% | Around median | |
Momentum | 80 | 28.4% | 2.9% | Top tier | |
Sentiment | 41 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lamar Advertising Company operates in outdoor advertising through static and digital billboards, transit and airport advertising, and logos, generating revenue from selling advertising space to local, regional, and national clients and through the programmatic channel. In Q2 fiscal 2026, local and regional sales accounted for 77.3% of billboard revenue, compared with 22.7% for national and programmatic business, while digital advertising represented approximately one-third of billboard revenue, demonstrating the business's reliance on a broad local base alongside the expansion of digital and national channels.
In Q2 fiscal 2026, revenue reached $616.75 million, exceeding expectations of $606.61 million, while acquisition-adjusted revenue grew 6.1% year over year. Net income was $164.60 million, and adjusted earnings before interest, taxes, depreciation, and amortization rose 9% to $303.40 million, with a record margin of 49.2%, up 110 basis points. Adjusted funds from operations also increased 10.1% to $247.9 million, and diluted AFFO per share rose 8.1% to $2.40, compared with $2.22 in Q2 fiscal 2025.
Growth was broad-based in Q2 fiscal 2026; acquisition-adjusted airport revenue rose 21.1%, digital revenue increased 15.4%, and national and programmatic business combined grew approximately 16%, compared with 3.4% growth in local and regional sales. All billboard regions recorded mid-single-digit growth, led by the Southwest at 7.7% and the Atlantic at 6.5%, while local and regional sales maintained a growth streak extending to 21 consecutive quarters.
The analyst consensus is "Buy," with an average price target of $160.50 and a target range of $151 to $170. The average target falls within the 52-week range of $114.45 to $166.33 and is approximately 3.5% below its high, while the highest target exceeds that high by approximately 2.2%; therefore, the targets reflect expectations for continued strong performance, but without a large gap above the stock's highest valuation within the annual range.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Lamar's revenue reached approximately $616.75 million, exceeding expectations of $606.61 million, with acquisition-adjusted growth of 6.1%. Digital advertising led growth with an increase of 15.4%, while acquisition-adjusted airport revenue rose 21.1% and national and programmatic business combined increased approximately 16%. This helped raise adjusted EBITDA to $303.40 million and achieve a record margin of 49.2%.
Lamar ended Q2 fiscal 2026 with 5,730 digital units in operation, an increase of 177 units from the end of fiscal 2025. Digital revenue rose 15.4%, same-board digital billboard revenue grew 6.5%, and digitalization now represents approximately one-third of billboard revenue. Growth in the programmatic channel also exceeded 50%, and it now accounts for approximately 10% of digital billboard revenue.
Management raised its diluted AFFO per share range to $8.75–$8.90 for fiscal 2026, an increase of $0.22 at the midpoint of the previous range. The midpoint of the new range represents growth of approximately 7% compared with fiscal 2025. Management also recommended increasing the quarterly distribution to $1.65 per share, subject to board approval, and expects a regular distribution of at least $6.50 per share during fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
Total consolidated debt was approximately $3.5 billion at the end of Q2 fiscal 2026, with net debt to EBITDA of 2.9 times and interest coverage of 7.1 times. The company had total liquidity of $720 million, including $68 million in cash and $652 million available through the credit facility. Management says its investment capacity exceeds $1 billion, while it expects cash spending of more than $200 million on acquisitions and easements during fiscal 2026.
Political spending increased by more than $5 million year over year in Q2 fiscal 2026, with approximately half of those funds directed to the digital platform. Management expects political spending to reach the low- to mid-$30 million range during fiscal 2026, compared with approximately $29 million in the 2024 cycle. At the same time, the services category rose 15.4%, supported by attorneys and technology service providers, including advertisers in the artificial intelligence field.
Financial risks include debt of approximately $3.5 billion and the maturity of the accounts receivable securitization in October 2027, despite leverage declining to 2.9 times. Acquisition-adjusted expenses rose 5.1% during the quarter, while the fiscal 2026 margin may not reach 48%, according to management. Achieving the targets for the remaining period also requires selling 10% to 15% of bookings, alongside executing a cash acquisition program exceeding $200 million during fiscal 2026.
