Boston Omaha Corporation (BOMN)

Boston Omaha Corporation (BOMN) Media & Communications Profile

Boston Omaha Corporation operates a diversified business model encompassing outdoor billboard advertising, surety insurance, broadband services, and strategic investments. With a focus on the southeastern United States for its billboard operations and high-speed internet services in Arizona and Utah, the company aims to build long-term value through disciplined capital allocation.

What Is the Investment Thesis for BOMN?

Boston Omaha Corporation presents a unique investment profile due to its diversified business model and focus on long-term value creation. Key value drivers include the steady revenue generated from its billboard advertising business, the growth potential within its broadband internet segment, and the disciplined capital allocation strategy across its various investment holdings. With a gross margin of 86.9%, the billboard business provides a strong foundation. Upcoming catalysts include the expansion of its broadband infrastructure and potential acquisitions in related sectors. Potential risks include negative profit margins of -10.9% and competition in the broadband market.

Based on FMP financials and quantitative analysis

BOMN Key Highlights

• Operates approximately 3,200 billboards with around 6,000 advertising faces, primarily in the southeastern United States.
• Provides high-speed internet to approximately 7,000 subscribers in southern Arizona.
• Serves roughly 10,000 broadband subscribers in the Salt Lake City metropolitan area, including Park City, Ogden, and Provo.
• Gross margin of 86.9% indicates strong profitability in the billboard advertising segment.
• Beta of 0.40 suggests lower volatility compared to the broader market.

Who Are BOMN's Competitors?

BOMN 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 BOMN's Key Strengths?

• Diversified revenue streams across multiple business segments.
• High gross margin in the billboard advertising business.
• Strategic focus on long-term value creation.
• Experienced management team with a track record of disciplined capital allocation.

What Are BOMN's Weaknesses?

• Negative profit margin indicates potential operational inefficiencies.
• Smaller scale compared to larger competitors in the advertising and broadband markets.
• Limited geographic diversification in billboard operations.
• Dependence on economic conditions in the southeastern United States.

What Could Drive BOMN Stock Higher?

• Expansion of broadband infrastructure to increase subscriber base.
• Conversion of static billboards to digital displays for higher revenue.
• Potential acquisitions in the surety insurance sector.
• Strategic investments in complementary businesses.

What Are the Key Risks for BOMN?

• Negative return on equity (-2.7%) — the business is not currently generating profit on shareholder capital.
• Increased competition in the broadband market from larger providers.
• Economic downturns that could reduce advertising spending.
• Regulatory changes impacting the billboard advertising industry.
• Negative profit margin indicating potential operational inefficiencies.

What Are the Growth Opportunities for BOMN?

• Expansion of Broadband Infrastructure: Boston Omaha has the opportunity to expand its broadband services to new geographic areas and increase subscriber penetration in existing markets. The market for broadband internet is growing, driven by increased demand for high-speed connectivity for remote work, streaming, and other data-intensive applications. Investing in fiber optic infrastructure and strategic acquisitions could significantly increase its market share.
• Digital Billboard Conversion: Converting existing static billboards to digital displays offers a significant growth opportunity. Digital billboards generate higher revenue per display due to their ability to show multiple advertisements and adjust content in real-time. The company can increase profitability by strategically converting high-traffic locations to digital billboards, capitalizing on the growing demand for dynamic advertising solutions.
• Strategic Acquisitions in Surety Insurance: Boston Omaha can expand its surety insurance business through strategic acquisitions of smaller, complementary firms. The surety insurance market is fragmented, presenting opportunities to consolidate market share and expand its product offerings. Acquisitions can provide access to new customer segments and geographic regions, enhancing the company's overall insurance operations.
• Investment in Complementary Businesses: Boston Omaha can leverage its investment expertise to acquire and develop businesses that complement its existing operations. Investing in companies that provide synergistic services, such as digital marketing or infrastructure development, can create new revenue streams and enhance the value of its core businesses. Disciplined capital allocation is crucial for maximizing returns on these investments.
• Geographic Expansion of Billboard Operations: Expanding its billboard operations into new geographic markets presents another growth avenue. Identifying regions with strong economic growth and high traffic volumes can provide opportunities to increase its billboard inventory and revenue. Strategic partnerships with local businesses and landowners can facilitate this expansion, allowing the company to establish a presence in new markets efficiently.

What Opportunities Does BOMN Have?

• Expansion of broadband services to new geographic areas.
• Conversion of static billboards to higher-revenue digital displays.
• Strategic acquisitions to expand market share in surety insurance.
• Investment in complementary businesses to create synergistic revenue streams.

What Threats Does BOMN Face?

• Competition from larger, more established players in the advertising and broadband markets.
• Economic downturns that could reduce advertising spending and broadband subscriptions.
• Regulatory changes that could impact the billboard advertising or broadband industries.
• Technological advancements that could disrupt traditional advertising methods.

What Are BOMN's Competitive Advantages?

• Established presence in the southeastern United States billboard market.
• Diversified business model reduces reliance on any single revenue stream.
• Disciplined capital allocation strategy fosters long-term value creation.
• Synergies between billboard advertising, broadband services, and insurance operations.

What Does BOMN Do?

Boston Omaha Corporation, originally named REO Plus, Inc. until its rebranding in March 2015, was founded in 2009 and is headquartered in Omaha, Nebraska. The company operates across several distinct business lines, including outdoor billboard advertising, surety insurance and related brokerage services, broadband internet provision, and strategic investments. The billboard division, primarily located in the southeastern United States, manages approximately 3,200 billboards containing around 6,000 advertising faces, including 60 digital displays as of March 2021. The broadband segment delivers high-speed internet to approximately 7,000 subscribers in southern Arizona and 10,000 subscribers in the Salt Lake City metropolitan area, including Park City, Ogden, and Provo. Boston Omaha aims to generate long-term value by strategically allocating capital across these diverse yet complementary sectors. The company's evolution reflects a transition from its initial focus as REO Plus, Inc. to a diversified holding company with a focus on infrastructure and related services.

What Products and Services Does BOMN 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 approximately 3,200 billboards with around 6,000 advertising faces.
• Invests in various businesses across different sectors.
• Focuses on long-term value creation through strategic capital allocation.

How Does BOMN Make Money?

• Generates revenue from billboard advertising through long-term contracts with advertisers.
• Earns premiums and fees from surety insurance policies and brokerage services.
• Collects subscription fees from broadband internet customers.
• Realizes returns on investments in various businesses and assets.

What Industry Does BOMN 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 with the increasing adoption of digital billboards, while the demand for high-speed internet continues to grow, driven by remote work and streaming services. The company competes with larger advertising firms and established broadband providers. The advertising industry is projected to grow moderately, while the broadband market is expected to see continued expansion due to increasing data consumption.

Who Are BOMN's Key Customers?

• Advertisers seeking to promote their products and services on billboards.
• Individuals and businesses requiring surety bonds.
• Residential and commercial customers needing high-speed internet access.
• Investors seeking long-term capital appreciation.

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 Peterson. BOMN has traded publicly since 2017.

Boston Omaha Corporation Financial Trajectory

Boston Omaha Corporation (BOMN) reported $28.2M in revenue for Q1 2026, a decline of 4.9% compared to the prior quarter. The company recorded a net loss of $2.1M, with diluted EPS of $-0.07. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Communication Services. Across the four most recent quarters, BOMN averaged $-0.11 in diluted EPS.

How Boston Omaha Corporation Is Valued

Boston Omaha Corporation carries a market capitalization of $765.03M, placing it in the small-cap category. Relative to its peer group, BOMN's quantitative score of 59/100 is roughly in line with the peer average of 66/100.

ROE -3%Key Financial Metrics

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 -2.1%, 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 -3.4%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 4/9Financial Health

Boston Omaha Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile.

BOMN Financials

BOMN Latest News

BOMN Analyst Consensus

BOMN MoonshotScore

Common Questions About BOMN (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.

Official Resources