Multibagger#23 Lamar Advertising

Name: Lamar Advertising

Symbol: LAMR

Price: $131.30

Release Date: Feb 2026

Forecast:

Theme: Value Investing, Warren Buffett

Story : Lamar Advertising is one of the largest outdoor advertising companies in North America, with over 362,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day.

In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,400 displays.

Website: https://lamar.com

Highlights

Rationale

Investment Highlights are Commanding position in middle markets with diverse customers, Proven tuck-in M&A strategy in fragmented industry,4.6% dividend yield in 2024 with double-digit growth expected in 2025, Demonstrated ability to navigate heavily regulated space, where introduction of new supply is challenging, Strong competitive position enables industry-leading margins.

Net revenues increased $96.1 million or 4.6% to $2.21 billion for the year ended December 31, 2024 from $2.11 billion for the same period in 2023. This increase was attributable to an increase in billboard net revenues of $78.4 million, an increase in transit net revenues of $16.1 million and an increase in logo net revenues of $1.7 million over the prior year.

Net revenues for the year ended December 31, 2024, as compared to acquisition-adjusted net revenues for the comparable period in 2023, increased $89.1 million, or 4.2%. This increase was attributable to an increase of $71.2 million in billboard net revenues, an increase of $16.2 million in transit net revenues and an increase of $1.7 million in logo net revenues.

As of December 31, 2024, company owned and operated approximately 159,000 billboard advertising displays in 45 states and Canada. Company rent most of the advertising space on two types of billboards: bulletins and posters.

In addition to traditional billboards, we also rent space on digital billboards, which are generally located on major traffic arteries and city streets. As of December 31, 2024, company owned and operated approximately 5,000 digital billboard advertising displays in 43 states and Canada.

Income Statement

Threats & Risks

• The Company’s substantial debt may adversely affect its business, financial condition and financial results
• The Company may be unable to generate sufficient cash flow to satisfy its significant debt service obligations
• Restrictions in the Company’s and Lamar Media’s debt agreements reduce operating flexibility and contain covenants and
  restrictions that create the potential for defaults, which could adversely affect the Company’s business, financial condition
  and financial results.
• The Company is controlled by significant stockholders who have the power to determine the outcome of all matters
  submitted to the stockholders for approval and whose interest in the Company may be different than yours.
• UPREIT structure may result in potential conflicts of interest.
• The Company’s growth through acquisitions may be difficult, which could adversely affect our future financial
  performance. In addition, if we are unable to successfully integrate any completed acquisitions, our financial performance
  would also be adversely affected.
• The Company could suffer losses due to asset impairment charges for goodwill and other intangible assets.
• The Company’s logo sign contracts are subject to state award and renewal
• The Company’s transit advertising contracts are subject to the Company’s ability to obtain and renew favorable contracts
  with municipalities and airport authorities.
• If the Company’s contingency plans relating to hurricanes and other natural disasters fail, the resulting losses could hurt
  the Company’s business
• The Company’s strategy involves continued investment in its digital platform, and we may fail to realize certain expected
  benefits of these investments and such investments may become more costly.
• cash distributions are not guaranteed and may fluctuate.
• The Lamar Advertising charter, the Lamar Advertising bylaws and Delaware law may inhibit a takeover that stockholders
  consider favorable and could also limit the market price of Lamar Advertising stock.

Summary

Based on the factors above company is having Multibagger properties. Investor can expect 10-20X returns in a 5-10 year holding period.