| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.16 | 114 |
| Intrinsic value (DCF) | 5.69 | -53 |
| Graham-Dodd Method | 10.92 | -11 |
| Graham Formula | n/a |
Boston Omaha Corporation (NYSE: BOC) is a diversified holding company with operations in outdoor billboard advertising, broadband services, surety insurance, and investments. Headquartered in Omaha, Nebraska, the company operates approximately 3,900 billboards, primarily in the southeastern U.S., with a growing presence in digital displays. Its broadband segment serves around 17,000 subscribers across Arizona and Utah, targeting underserved communities with high-speed internet. Additionally, Boston Omaha engages in surety insurance and related brokerage services, providing financial guarantees for construction and other industries. The company’s diversified business model allows it to capitalize on niche markets with high growth potential, particularly in regional advertising and broadband expansion. With a market cap of approximately $438 million, Boston Omaha is positioned as a unique player in the communication services sector, blending traditional media assets with modern infrastructure investments.
Boston Omaha presents an intriguing investment case due to its diversified revenue streams and exposure to high-growth segments like broadband and digital advertising. However, the company’s negative net income and EPS raise concerns about profitability, despite positive operating cash flow. Its billboard business benefits from steady demand, while broadband expansion could drive long-term growth. The lack of dividends may deter income-focused investors, but the company’s low beta (1.014) suggests relative stability compared to the broader market. Key risks include high capital expenditures, debt levels (~$99.9 million), and competition in both broadband and advertising. Investors should monitor cash flow trends and the scalability of its broadband operations.
Boston Omaha’s competitive advantage lies in its diversified and asset-heavy business model, which combines stable cash flows from billboard advertising with growth potential in broadband and insurance. In outdoor advertising, it competes with larger players but focuses on regional markets where it can achieve pricing power. Its broadband segment targets underserved areas, reducing direct competition with national ISPs. The surety insurance business provides a recurring revenue stream with relatively low capital intensity. However, the company lacks the scale of dominant advertising or broadband competitors, which could limit its ability to negotiate better terms or expand rapidly. Its investment arm, led by co-CEOs Alex Rozek and Adam Peterson, allows for strategic acquisitions, but execution risk remains. The company’s ability to integrate acquisitions and improve margins in its broadband segment will be critical to sustaining competitiveness.