The oOh!Media Ltd (ASX: OML) share price closed down 3.6% yesterday.
Last week, oOh!Media looked to have snapped a lengthy losing streak, finishing the week up 6.3%. But yesterday's losses resume the downward trend that has battered investors in the stock since the outset of the COVID-19 pandemic.
The company's share price is now down a painful 65.8% since 20 February, when the broader market hit all-time highs. Over that same time, the All Ordinaries Index (ASX: XAO) has managed to claw back much of its early losses, currently down 15.0% from the high.
What does oOh!Media do?
Brendon Cook founded oOh!Media in 1989 under the name Outdoor Network Australia. It's since become one of the largest operators of outdoor advertising in Australia.
Among other outlets, the company operates digital billboards in South Australia, New South Wales and the Northern Territory. It counts both Qantas Airways Limited (ASX: QAN) and Sydney Airport Holdings Pty Ltd (ASX: SYD) as major customers.
What next for oOh!Media?
Advertising companies across the board have been hit hard by the fallout of COVID-19. oOh!Media is no exception.
You need look no further than its 2 major clients listed above to see why. Many Australians have been literally stuck in their homes under rigorous lockdown conditions, and very few have travelled interstate, let alone internationally.
Hence Qantas share price has tanked 45% since 20 February, and Sydney Airport's stock has tumbled 34.2%.
It's hard to envision a more difficult environment for an outdoor billboard company.
At the current share price, the stock trades at a price-to-earnings ratio of 17.9 times. Until social distancing restrictions ease and travel resumes, it's hard to see the earnings part of that equation rise.
In the meantime, the share price may have further to fall. But in my view, this stock is one to keep an eye on. It could bounce strongly on any news of a vaccine or lifting of travel restrictions.
