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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 48.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
—
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Clear Channel Outdoor Holdings, Inc. (CCO) receives a "Buy" rating with a composite score of 52.2/100, ranked #34 out of 4446 stocks. Key factor scores: Quality 48/100, Value 58/100, Momentum 69/100. This is quantitative analysis only — not investment advice.
Clear Channel Outdoor Holdings, Inc. (CCO) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Clear Channel Outdoor Holdings, Inc. Do?
Clear Channel Outdoor Holdings, Inc. owns, operates, and sells advertising displays in the United States and internationally. It operates through two segments, Americas and Europe. The company offers advertising services through billboards, including bulletins and posters; transit displays, which are advertising surfaces on various types of vehicles or within transit systems; street furniture displays, such as advertising surfaces on bus shelters, information kiosks, freestanding units, and other public structures; spectaculars, which are customized display structures that incorporate videos, multidimensional lettering and figures, mechanical devices and moving parts, and other embellishments; wallscape, a display that drapes over or is suspended from the sides of buildings or other structures. It also provides street furniture equipment, cleaning and maintenance services, operation of public bike programs, and production services; and a public bicycle rental program, which offers bicycles for rent to the general public in various municipalities. As of December 31, 2021, it owned or operated approximately 69,000 advertising displays in the Americas; and 430,000 advertising displays in Europe. The company was formerly known as Eller Media Company and changed its name to Clear Channel Outdoor Holdings, Inc. in August 2005. Clear Channel Outdoor Holdings, Inc. was founded in 1901 and is headquartered in San Antonio, Texas. Clear Channel Outdoor Holdings, Inc. (CCO) is classified as a small-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Scott R. Wells and employs approximately 4,700 people, headquartered in SAN ANTONIO, Texas. With a market capitalization of $1.2B, CCO is one of the notable companies in the Industrials sector.
As of April 2026, Clear Channel Outdoor Holdings, Inc. receives a Buy rating with a composite score of 52.2/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.CCO ranks #34 out of 4,446 stocks in our coverage universe. Within the Industrials sector, Clear Channel Outdoor Holdings, Inc. ranks #5 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CCO Stock Price and 52-Week Range
Clear Channel Outdoor Holdings, Inc. (CCO) currently trades at $2.37. The 52-week high for CCO is $2.43, which means the stock is currently trading -2.5% from its annual peak. The 52-week low is $0.81, putting the stock 192.1% above its annual trough. Recent trading volume was 3.1M shares, reflecting moderate market activity.
Is CCO Overvalued or Undervalued? — Valuation Analysis
Clear Channel Outdoor Holdings, Inc. (CCO) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 59.25x, compared to the Industrials sector average of 28.33x — a premium of 109%. The price-to-sales ratio is 0.78x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, CCO trades at 23.31x EV/EBITDA, versus 5.70x for the sector. The EV/EBIT multiple is 19.60x.
Overall, CCO's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Clear Channel Outdoor Holdings, Inc. Profitability — ROE, Margins, and Quality Score
Clear Channel Outdoor Holdings, Inc. (CCO) earns a quality factor score of 48/100, signaling below-average profitability metrics relative to the broader market. Return on assets (ROA) comes in at -0.4% versus the sector average of 3.3%.
On a margin basis, Clear Channel Outdoor Holdings, Inc. reports gross margins of 53.4%, compared to 35.8% for the sector. The operating margin is 17.6% (sector: 6.2%). Net profit margin stands at -0.3%, versus 3.9% for the average Industrials stock. Revenue growth is running at 7.7% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
CCO Debt, Balance Sheet, and Financial Health
Balance sheet data for CCO is evaluated through our stability factor. The current ratio is 1.28x, suggesting adequate working capital coverage. Total debt on the balance sheet is $5.10B. Cash and equivalents stand at $155M.
CCO has a beta of 1.67, meaning it is more volatile than the broader market — a $10,000 investment in CCO would be expected to move 67.4% more than the S&P 500 on any given day. The stability factor score for Clear Channel Outdoor Holdings, Inc. is 50/100, reflecting average volatility within the normal range for its sector.
Clear Channel Outdoor Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Clear Channel Outdoor Holdings, Inc. reported revenue of $1.52B and earnings per share (EPS) of $0.04. Net income for the quarter was $-17M. Gross margin was 53.4%. Operating income came in at $270M.
In FY 2025, Clear Channel Outdoor Holdings, Inc. reported revenue of $1.60B and earnings per share (EPS) of $0.04. Net income for the quarter was $25M. Gross margin was 53.4%. Revenue grew 6.6% year-over-year compared to FY 2024. Operating income came in at $311M.
In Q3 2025, Clear Channel Outdoor Holdings, Inc. reported revenue of $406M and earnings per share (EPS) of $-0.12. Net income for the quarter was $-59M. Gross margin was 54.5%. Revenue grew 8.1% year-over-year compared to Q3 2024. Operating income came in at $81M.
In Q2 2025, Clear Channel Outdoor Holdings, Inc. reported revenue of $403M and earnings per share (EPS) of $0.02. Net income for the quarter was $11M. Gross margin was 53.9%. Revenue grew 7.0% year-over-year compared to Q2 2024. Operating income came in at $77M.
Over the past 8 quarters, Clear Channel Outdoor Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $376M to $1.52B. Investors analyzing CCO stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CCO Dividend Yield and Income Analysis
Clear Channel Outdoor Holdings, Inc. (CCO) does not currently pay a dividend. This is common among smaller companies in the Business Services industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
CCO Momentum and Technical Analysis Profile
Clear Channel Outdoor Holdings, Inc. (CCO) has a momentum factor score of 69/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 37/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CCO vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing CCO against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CCO vs S&P 500 (SPY) comparison to assess how Clear Channel Outdoor Holdings, Inc. stacks up against the broader market across all factor dimensions.
CCO Next Earnings Date
No upcoming earnings date has been announced for Clear Channel Outdoor Holdings, Inc. (CCO) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CCO? — Investment Thesis Summary
The bull case for Clear Channel Outdoor Holdings, Inc. rests on several quantitative strengths. Price momentum is positive at 69/100, suggesting the trend favors buyers.
In summary, Clear Channel Outdoor Holdings, Inc. (CCO) earns a Buy rating with a composite score of 52.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CCO stock.
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Institutional Research Dossier
Clear Channel Outdoor Holdings, Inc. (CCO) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage of Clear Channel Outdoor Holdings, Inc. (CCO) with a Buy rating. This rating is predicated on the company's dominant position in the out-of-home (OOH) advertising market, its improving financial performance driven by digital transformation and programmatic advertising, and a valuation that appears attractive relative to its growth potential and peers. While CCO carries a significant debt load, its improving free cash flow generation and strategic asset sales provide a pathway to deleveraging and enhanced shareholder value.
The most critical takeaway is CCO's ongoing transition towards digital OOH (DOOH), which offers higher revenue yields, greater flexibility in ad content, and improved measurability for advertisers. This shift, coupled with the broader recovery in advertising spending, positions CCO for sustained growth and margin expansion, justifying our bullish outlook despite the inherent risks associated with its leverage and the cyclical nature of the advertising industry.
Business Strategy & Overview
Clear Channel Outdoor Holdings operates in the out-of-home (OOH) advertising sector, providing advertising displays across billboards, transit systems, and street furniture in both the Americas and Europe. The company generates revenue primarily through the sale of advertising space on these displays, offering a range of formats from traditional static billboards to dynamic digital displays. CCO's strategic focus is on expanding its digital OOH footprint, leveraging programmatic advertising platforms, and enhancing data analytics capabilities to improve ad targeting and effectiveness.
The company's business model revolves around securing long-term leases or ownership of prime advertising locations, developing and maintaining these displays, and selling advertising inventory to a diverse range of clients, including national brands, local businesses, and advertising agencies. CCO differentiates itself through its extensive network of displays, its ability to offer customized advertising solutions, and its investments in digital technology. The shift towards digital displays allows for more dynamic and targeted advertising, attracting higher ad rates and improving overall revenue yields.
CCO's strategic positioning within the OOH advertising market is centered on being a leading provider of both traditional and digital advertising solutions. The company is actively investing in upgrading its existing infrastructure to digital displays, expanding its programmatic advertising capabilities, and leveraging data analytics to provide advertisers with more effective targeting and measurement tools. This strategy aims to capitalize on the growing demand for digital advertising and the increasing adoption of programmatic buying in the OOH sector.
The company's product pipeline primarily consists of expanding its digital display network and enhancing its advertising technology platform. CCO is focused on developing new and innovative advertising formats, such as interactive displays and mobile integration, to further enhance the value proposition for advertisers. The company also invests in data analytics and audience measurement tools to provide advertisers with more granular insights into campaign performance.
The OOH advertising industry is characterized by a mix of large, established players like CCO and smaller, regional operators. The industry is undergoing a significant transformation driven by the increasing adoption of digital technology and programmatic advertising. CCO's competitive advantage lies in its scale, its extensive network of displays, and its investments in digital innovation. The company faces competition from other OOH advertising providers, as well as from other advertising channels, such as digital advertising, television, and radio.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
7.7%
Sector: 6.4%
+21% VS SCTR
Economic Moat Analysis
Clear Channel Outdoor possesses a narrow economic moat, primarily derived from its established network of prime advertising locations and, increasingly, its investments in digital infrastructure. While not insurmountable, these factors create barriers to entry and provide a degree of competitive advantage. The value of prime advertising locations is inherently limited by geography, making it difficult for new entrants to replicate CCO's existing footprint in desirable areas.
The network effect, while not as pronounced as in some other industries, plays a role in CCO's moat. A larger network of displays attracts a wider range of advertisers, which in turn makes the network more valuable to potential advertisers. This creates a virtuous cycle that benefits established players like CCO. However, the network effect is limited by the fact that advertisers can often achieve their desired reach through a combination of smaller, regional OOH providers.
Switching costs for advertisers are relatively low, as they can easily shift their advertising spend between different OOH providers or other advertising channels. This limits CCO's ability to command premium pricing or retain customers based solely on switching costs. However, the convenience and efficiency of working with a large, established provider like CCO, which can offer a comprehensive range of advertising solutions across multiple markets, can create a degree of customer loyalty.
Intangible assets, such as brand recognition and relationships with landlords and municipalities, also contribute to CCO's moat. The company's long history in the OOH advertising industry has allowed it to build strong relationships with key stakeholders, which can provide a competitive advantage in securing new advertising locations and navigating regulatory hurdles. However, these intangible assets are not particularly strong, and new entrants can often overcome these barriers with sufficient capital and expertise.
Efficient scale is not a significant factor in CCO's moat, as the OOH advertising industry is not characterized by significant economies of scale. While larger players like CCO may be able to achieve some cost advantages through centralized operations and bulk purchasing, these advantages are not substantial enough to create a significant barrier to entry for smaller, regional operators.
The increasing adoption of digital OOH (DOOH) and programmatic advertising is potentially widening CCO's moat. The investments required to build and maintain a digital display network, as well as the expertise needed to operate a programmatic advertising platform, create higher barriers to entry for smaller players. As DOOH becomes a more significant part of the OOH advertising market, CCO's investments in this area should provide a growing competitive advantage.
Financial Health & Profitability
Clear Channel Outdoor's financial health presents a mixed picture. While recent revenue growth has been positive, profitability has been inconsistent, and the company carries a substantial debt burden. Revenue for FY2025 was $1.60 billion, up from $1.51 billion in FY2024, indicating a recovery in advertising spending. Gross margins are strong at 53.4% for FY2025, significantly higher than the sector average of 35.8%, reflecting CCO's pricing power and efficient operations. Operating margin is also robust at 17.6% compared to the sector average of 6.2%.
However, net income has been volatile. While FY2025 showed a net income of $24.74 million, FY2024 saw a net loss of $175.88 million, and FY2023 had a net loss of $308.82 million. This volatility is partly due to fluctuations in advertising spending and the costs associated with the company's digital transformation. The company's ROE is not available, but given the recent net losses, it is likely to be negative or low. The sector average ROE is 9.2%.
CCO's balance sheet is heavily leveraged, with total debt of $5.10 billion and total cash of $155.01 million. This high debt level is a significant concern, as it increases the company's financial risk and limits its flexibility to invest in growth opportunities. The company's current ratio is 1.28, indicating adequate liquidity to meet its short-term obligations. However, the high debt level remains a key area of focus for investors.
Free cash flow (FCF) generation is a positive aspect of CCO's financial profile. The company generated $1.28 billion in FCF, providing ample resources to service its debt and invest in growth initiatives. However, it is important to note that this figure may be influenced by specific accounting treatments or one-time events, and it is essential to analyze the sustainability of this FCF generation over the long term. The company's high debt-to-equity ratio (D/E) is not available, but given the high debt and relatively low equity, it is likely to be significantly higher than the sector average of 70.00.
Looking at the quarterly financial history, revenue has shown a general upward trend, but net income has been highly variable. Q1 2025 showed a strong net income of $63.21 million, while Q3 2025 reported a net loss of $58.85 million. This variability highlights the cyclical nature of the advertising industry and the impact of economic conditions on CCO's financial performance. The company's gross margin has remained relatively stable over the past few quarters, indicating consistent pricing power and cost management.
Overall, CCO's financial health is characterized by strong revenue growth and margins, but also by high debt and volatile profitability. The company's ability to generate free cash flow is a positive sign, but it needs to continue to deleverage its balance sheet and improve its net income consistency to enhance its financial stability and attract long-term investors.
Valuation Assessment
Clear Channel Outdoor's valuation presents a complex picture. The company's P/E ratio of 59.8x is significantly higher than the sector average of 27.7x, suggesting that the stock is relatively expensive based on current earnings. However, this high P/E ratio is partly due to the company's recent history of net losses, which have depressed its earnings per share. As the company's profitability improves, its P/E ratio is likely to decline.
The company's EV/EBITDA ratio of 5.1x is slightly lower than the sector average of 5.7x, indicating that the stock may be undervalued based on its enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. This suggests that the market may be undervaluing CCO's underlying earnings power, particularly given its strong gross and operating margins.
Given the company's high debt level, the EV/EBITDA ratio may be a more relevant valuation metric than the P/E ratio. The EV/EBITDA ratio takes into account the company's debt, which is a significant factor in its overall valuation. A lower EV/EBITDA ratio suggests that the company's enterprise value is relatively low compared to its earnings, which could indicate undervaluation.
The company's free cash flow yield is not explicitly provided, but given the high free cash flow of $1.28 billion and the market cap of $1.19 billion, the FCF yield is substantial. This suggests that the company is generating a significant amount of cash relative to its market value, which could be attractive to investors seeking cash-generating businesses. However, it is important to assess the sustainability of this high FCF generation over the long term.
Relative to its growth prospects, CCO's valuation appears reasonable. The company is expected to benefit from the ongoing recovery in advertising spending and the increasing adoption of digital OOH (DOOH) and programmatic advertising. These factors should drive revenue growth and margin expansion, which could justify a higher valuation. However, the company's high debt level and volatile profitability remain key risks that investors need to consider.
Overall, CCO's valuation is mixed. While the P/E ratio is high, the EV/EBITDA ratio and FCF yield suggest that the stock may be undervalued. The company's growth prospects and potential for margin expansion could justify a higher valuation, but its high debt level and volatile profitability remain key concerns. We believe that the potential upside outweighs the risks, justifying our Buy rating.
Risk & Uncertainty
Clear Channel Outdoor faces several specific risks that could negatively impact its business and financial performance. The most significant risk is its high debt level, which increases its financial leverage and vulnerability to economic downturns. A decline in advertising spending could make it difficult for the company to service its debt obligations, potentially leading to financial distress.
Competition from other OOH advertising providers, as well as from other advertising channels, such as digital advertising, television, and radio, poses a significant threat to CCO's market share and profitability. The increasing adoption of digital advertising and programmatic buying is intensifying competition in the advertising industry, and CCO needs to continue to innovate and adapt to these changes to remain competitive.
Regulatory risks are also a concern for CCO. The OOH advertising industry is subject to various regulations at the federal, state, and local levels, which can impact the company's ability to operate its displays and generate revenue. Changes in regulations, such as restrictions on billboard advertising or increased permitting requirements, could negatively impact the company's business.
The cyclical nature of the advertising industry is another key risk for CCO. Advertising spending tends to be highly correlated with economic conditions, and a recession or economic slowdown could lead to a significant decline in advertising revenue. This could negatively impact CCO's profitability and cash flow, making it difficult for the company to service its debt and invest in growth opportunities.
Concentration risk is present, as CCO relies on a relatively small number of large advertisers for a significant portion of its revenue. The loss of one or more of these key advertisers could have a material adverse impact on the company's financial performance. CCO needs to diversify its customer base and reduce its reliance on a few large advertisers to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWClear Channel's aggressive push into digital out-of-home (DOOH) advertising will drive higher revenue yields and attract a new wave of tech-savvy advertisers, leading to significant margin expansion.
BULL VIEWThe company's improving free cash flow generation, coupled with strategic asset sales, will enable rapid deleveraging, reducing financial risk and unlocking substantial shareholder value.
The Bear Case
BEAR VIEWClear Channel's massive debt burden leaves it highly vulnerable to economic downturns and rising interest rates, potentially leading to a liquidity crisis and hindering its ability to invest in growth.
BEAR VIEWThe increasing fragmentation of the advertising market and the rise of digital advertising channels will erode Clear Channel's market share and pricing power, resulting in declining revenue and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CCO and 4,400+ other equities.
Clear Channel Outdoor Holdings, Inc. exhibits a 158% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-0.4%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
53.4%
Sector: 35.8%
Operating Margin
Core business profitability
17.6%
Sector: 6.2%
Net Margin
Bottom-line profitability
-0.3%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
