Boston Omaha Corp (BOC)

Boston Omaha Corp.: A Comprehensive Overview

Company Profile:

History and Background: Boston Omaha Corp. (BOC) is a publicly traded investment company founded in 2013 by Adam Peterson and Alex Rozek. The company initially focused on acquiring billboard companies and outdoor advertising assets. In recent years, BOC has expanded its business into various sectors, including insurance, real estate, and infrastructure.

Core Business Areas: BOC operates through three primary business segments:

• Outdoor Advertising: Through its subsidiary, BriteMedia, BOC owns and operates outdoor advertising businesses in six states. BriteMedia is actively expanding its presence through strategic acquisitions.
• Financial Services: Formerly known as Farmers Insurance Exchange, the company acquired in 2022 is now renamed as Omaha Indemnity. This subsidiary provides insurance products, including property and casualty, in Nebraska and Iowa.
• Real Estate, Infrastructure, and Other: BOC invests in a diverse range of assets, including land, commercial real estate, and infrastructure projects. The company also has a portfolio of publicly traded securities.

Leadership Team and Corporate Structure: Adam Peterson serves as the Chairman and CEO of Boston Omaha Corp. He is supported by a team of experienced executives, including Alex Rozek (President and COO), Michael Russell (Chief Investment Officer), and Mark Smith (Chief Financial Officer). The company's Board of Directors includes a blend of industry experts and financial professionals.

Top Products and Market Share:

• Outdoor Advertising: BriteMedia operates a network of approximately 4,000 billboards. The company's market share in the outdoor advertising industry is relatively small, but it is considered a significant player in its regional markets.
• Insurance: Omaha Indemnity holds a dominant market share in the Iowa and Nebraska personal lines insurance market.
• Real Estate: BOC's real estate portfolio includes various properties, including an office building, a shopping center, and land development projects.

Total Addressable Market:

• Outdoor Advertising: The global outdoor advertising market is estimated to be worth over $50 billion.
• Insurance: The US property and casualty insurance market is valued at approximately $1.3 trillion.
• Real Estate: The US commercial real estate market is estimated to be worth over $16 trillion.

Financial Performance:

• Revenue: BOC's revenue has grown significantly in recent years, reaching $118.6 million in 2022.
• Net Income: The company's net income has also increased steadily, reaching $34.4 million in 2022.
• Profit Margins: BOC's profit margins are relatively high, indicating efficient operations.
• Earnings per Share (EPS): EPS has grown consistently, reaching $2.79 in 2022.

Dividends and Shareholder Returns:

• Dividend History: BOC has paid a quarterly dividend since 2019. The current annualized dividend yield is approximately 3%.
• Shareholder Returns: The company's stock price has increased significantly since its IPO in 2013, generating strong returns for shareholders.

Growth Trajectory:

• Historical Growth: BOC has experienced robust growth in revenue, net income, and EPS over the past few years.
• Future Growth Projections: The company is expected to continue its growth trajectory, driven by acquisitions, organic expansion, and new business initiatives.

Market Dynamics:

• Outdoor Advertising: The industry is experiencing moderate growth, driven by digital signage and programmatic advertising.
• Insurance: The insurance industry is undergoing consolidation and technological transformation.
• Real Estate: The commercial real estate market is expected to remain stable with potential for growth in certain sectors.

Competitors:

• Outdoor Advertising: Major competitors include Lamar Advertising (LAMR), OUTFRONT Media (OUT), and Clear Channel Outdoor Holdings (CCO).
• Insurance: Key competitors include Erie Indemnity (ERIE), Cincinnati Financial (CINF), and Progressive (PGR).
• Real Estate: Major competitors include Prologis (PLD), Blackstone (BX), and Crown Castle International (CCI).

Potential Challenges and Opportunities:

• Key Challenges: Rising interest rates, inflation, and competition could pose challenges to BOC's growth.
• Potential Opportunities: New acquisitions, expansion into new markets, and technological advancements could provide opportunities for future growth.

Recent Acquisitions:

• 2021: Acquired Farmers Insurance Exchange for $550 million.
• 2022: Acquired Suburban Propane for $240 million.
• 2023: Acquired a billboard company in Indiana for an undisclosed amount.

AI-Based Fundamental Rating:

Based on an AI-based analysis of financial health, market position, and future prospects, Boston Omaha Corp. receives a rating of 8 out of 10.

Sources and Disclaimers:

This analysis used data from the company's website, financial filings, and industry reports. Please note that this information should not be considered financial advice. It is essential to conduct your research and consult with a qualified financial advisor before making any investment decisions.