Boston Omaha Corporation (BOC) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Boston Omaha Corporation (BOC) Media & Communications Profile

Boston Omaha Corporation (BOC) is a diversified holding company with interests in outdoor billboard advertising, surety insurance, broadband services, and strategic investments. The company focuses on acquiring and growing businesses with strong fundamentals, primarily operating in the southeastern United States and select broadband markets.

What Is the Investment Thesis for BOC?

The company's billboard advertising segment provides a stable revenue stream, while its broadband business offers significant growth potential in underserved markets. The surety insurance business adds further diversification and recurring revenue. Key value drivers include the expansion of its broadband subscriber base, increased utilization of digital billboard displays, and strategic acquisitions in complementary sectors. The company's disciplined capital allocation approach, overseen by its management team, aims to generate long-term shareholder value. However, investors should be aware of the risks associated with integrating acquisitions and the competitive pressures in the broadband and advertising markets. The company's negative profit margin of -10.9% also warrants close monitoring.

Based on FMP financials and quantitative analysis

BOC Key Highlights

Operates approximately 3,900 billboards with 7,400 advertising faces as of March 2022, providing a stable revenue base.

• Provides high-speed internet to approximately 17,000 subscribers across Arizona and Utah, indicating a growing broadband segment.
• Gross margin of 86.9% reflects strong pricing power in its core advertising business.
• Beta of 0.66 suggests lower volatility compared to the broader market, potentially offering downside protection.
• Diversified business model across outdoor advertising, surety insurance, broadband, and investments mitigates sector-specific risks.

Who Are BOC's Competitors?

BOC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BOC's Key Strengths?

Diversified business model reduces risk.

• Strong presence in select geographic markets.
• Disciplined capital allocation strategy.
• High gross margin in advertising business (86.9%).

What Are BOC's Weaknesses?

Negative profit margin (-10.9%) raises concerns.

• Smaller scale compared to larger competitors.
• Limited geographic diversification.
• Reliance on acquisitions for growth.

What Could Drive BOC Stock Higher?

BOC catalyst: Expansion of broadband infrastructure in Arizona and Utah, expected to increase subscriber base by Q4 2026.

• Increasing adoption of digital billboards, driving higher advertising revenue per display.
• Strategic acquisitions in complementary sectors, enhancing diversification and growth potential.
• Growth in the surety insurance business, driven by increased demand for surety bonds.

What Are the Key Risks for BOC?

Financial-distress signal — its Altman Z-Score of 1.65 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-2.7%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 8 reported quarters.
• Economic downturn could reduce advertising spending and impact billboard revenue.
• Intense competition in the broadband market could limit subscriber growth.
• Regulatory changes could impact the surety insurance business.
• Integration risks associated with acquisitions could negatively impact financial performance.
• Negative profit margin raises concerns about long-term profitability.

What Are the Growth Opportunities for BOC?

• Expansion of Broadband Services: Boston Omaha has a significant opportunity to expand its broadband services in underserved markets. The increasing demand for high-speed internet, particularly in rural areas, presents a substantial growth opportunity. The company can leverage its existing infrastructure and expertise to acquire new subscribers and increase its market share. The broadband market is projected to reach $67.5 billion by 2028, growing at a CAGR of 6.2% from 2021. This expansion could significantly increase recurring revenue and improve overall profitability.
• Digital Billboard Expansion: The company can further capitalize on the growing demand for digital advertising by expanding its digital billboard network. Digital billboards offer greater flexibility and higher revenue potential compared to traditional static billboards. By converting existing static billboards to digital displays and strategically placing new digital billboards in high-traffic areas, Boston Omaha can attract more advertisers and increase its advertising revenue. The digital out-of-home (DOOH) advertising market is expected to reach $48.49 billion by 2033, growing at a CAGR of 12.2% from 2023.
• Strategic Acquisitions: Boston Omaha can pursue strategic acquisitions in complementary sectors to further diversify its business and expand its market reach. Acquiring companies in the surety insurance, broadband, or advertising industries can provide access to new markets, technologies, and customer bases. The company's disciplined capital allocation approach ensures that acquisitions are accretive to shareholder value. The M&A market in the communication services sector remains active, with numerous opportunities for consolidation and growth.
• Increased Surety Insurance Penetration: Boston Omaha has the potential to increase its penetration in the surety insurance market by expanding its distribution network and offering tailored insurance products to specific industries. The surety insurance market is characterized by stable demand and recurring revenue, making it an attractive growth area for the company. The global surety bond market is projected to reach $11.4 billion by 2028, growing at a CAGR of 4.5% from 2021. This growth can be achieved through strategic partnerships and targeted marketing efforts.
• Enhanced Operational Efficiencies: Boston Omaha can improve its profitability by implementing operational efficiencies across its various business segments. This includes streamlining processes, reducing costs, and leveraging technology to improve productivity. By optimizing its operations, the company can increase its margins and generate higher returns on invested capital. This includes initiatives such as automating billboard maintenance, optimizing broadband network performance, and improving customer service efficiency. These improvements can lead to significant cost savings and increased profitability over time.

What Are BOC's Competitive Advantages?

• Geographic Focus: Strong presence in specific regions provides a competitive edge.
• Diversified Business Model: Reduces reliance on any single industry or market.
• Disciplined Capital Allocation: Focus on long-term value creation.
• Established Infrastructure: Existing billboard and broadband networks provide a barrier to entry.

What Does BOC Do?

Boston Omaha Corporation, originally incorporated as REO Plus, Inc. in 2009, rebranded in March 2015 to reflect its evolving business strategy. Headquartered in Omaha, Nebraska, the company operates across several distinct sectors. Its outdoor billboard advertising segment, primarily located in the southeastern United States, features approximately 3,900 billboards containing around 7,400 advertising faces, including 80 digital displays as of March 2022. This segment generates revenue through long-term advertising contracts with local and national businesses. In addition to advertising, Boston Omaha is involved in the surety insurance and related brokerage business, providing surety bonds to contractors and other businesses. The company also delivers high-speed internet services to approximately 17,000 subscribers. Specifically, it serves around 7,000 subscribers in communities in southern Arizona and 10,000 subscribers in the Salt Lake City, Park City, Ogden, Provo, and surrounding communities in Utah. Boston Omaha's investment business involves strategic capital allocation across various sectors, seeking opportunities to generate long-term returns. The company's diversified approach aims to mitigate risk and capitalize on growth opportunities across different industries.

What Products and Services Does BOC Offer?

• Operates outdoor billboard advertising in the southeastern United States.
• Provides surety insurance and related brokerage services.
• Offers high-speed internet service to residential and commercial customers.
• Manages a portfolio of strategic investments across various sectors.
• Acquires and develops businesses with strong fundamentals.
• Focuses on long-term value creation through disciplined capital allocation.

How Does BOC Make Money?

• Generates revenue from outdoor billboard advertising through long-term contracts.
• Earns premiums and fees from surety insurance and related brokerage services.
• Collects subscription fees from high-speed internet service customers.
• Generates returns from strategic investments in various sectors.

What Industry Does BOC Operate In?

Boston Omaha Corporation operates within the communication services sector, specifically in advertising agencies and broadband services. The outdoor advertising market is experiencing a resurgence, driven by the increasing demand for localized and targeted advertising. The broadband market is characterized by rapid growth, fueled by the increasing demand for high-speed internet access, especially in underserved rural areas. Competition in both sectors is intense, with established players and new entrants vying for market share. Boston Omaha differentiates itself through its diversified business model and strategic focus on select geographic markets.

Who Are BOC's Key Customers?

• Local and national businesses advertising on billboards.
• Contractors and other businesses requiring surety bonds.
• Residential and commercial customers subscribing to high-speed internet service.

Company Profile

Boston Omaha Corporation operates in the Advertising Agencies industry within the Communication Services sector. It is headquartered in Omaha, US. The company is led by CEO Adam Kenneth Peterson. BOC has traded publicly since 2017.

Return on equity for Boston Omaha Corporation stands at -2.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.0%, showing how much profit it generates from its asset base. Its free cash flow yield is -2.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.86 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -3.3%, the inverse of the P/E and a quick read on earnings relative to price.

BOC Valuation & Market Position

With a $422M market cap, Boston Omaha Corporation sits in the small-cap segment of the market. Relative to its peer group, BOC's quantitative score of 34/100 is below the peer average of 68/100.

Quarterly Financial Performance: Boston Omaha Corporation

Revenue for Boston Omaha Corporation came in at $22.2M during Q2 FY2026, a 21.4% contraction versus the preceding quarter. The company recorded a net loss of $1.6M, with diluted EPS of $-0.05. Revenue has contracted over three consecutive quarters, which investors in this small-cap Communication Services stock should monitor closely. Across the four most recent quarters, BOC averaged $-0.11 in diluted EPS.

Boston Omaha Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.65 places it in the distress zone, a signal of elevated financial risk.

Boston Omaha Corporation has missed Wall Street's EPS estimate in 7 of its last 8 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 147.9% below estimates on average.

Over the past six months, Boston Omaha Corporation insiders filed 7 SEC Form 4 transactions — 0 sales and 7 purchases. On net that is roughly 92K shares acquired (about $1.2M) — insiders putting money in tends to read as conviction.

BOC Financials

BOC Latest News

BOC Analyst Consensus

BOC MoonshotScore

Common Questions About BOC (Communication Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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