Ricardo Pillai
3 min read
We came across a bullish thesis on Boston Omaha Corporation (BOC) on Substack by Steve Wagner. In this article, we will summarize the bulls’ thesis on BOC. Boston Omaha Corporation (BOC)'s share was trading at $14.35 as of May 19th. BOC’s trailing P/E was 478.33 according to Yahoo Finance.
A busy urban street, its billboards showing advertisements for a variety of national and local brands.
Boston Omaha Corporation (BOC) delivered a strong Q1 2025, reaffirming its identity as a long-term compounder with steady progress across its billboard, broadband, and surety insurance segments. Revenue grew 8.5% year-over-year to $27.7 million, while net loss narrowed sharply to just $0.67 million, signaling a near-breakeven point. Operating cash flow of $2.6 million demonstrated that each business segment remains self-funding despite ongoing reinvestment. The billboard business held firm at $10.8 million in revenue, continuing to serve as the company’s cash-flow foundation. Broadband revenue rose 6.6% to $10.3 million, as incremental gains in network buildout and subscriber growth continued. The insurance segment was the standout, with earned premiums surging 39% to $5.56 million, highlighting General Indemnity Group’s transformation into a high-margin growth engine.
BOC’s book value per share was steady at $16.95, backed by over $44 million in cash and marketable securities and modest debt, providing ample flexibility for buybacks, acquisitions, or reinvestment. Its equity stake in Sky Harbour, still recorded at cost despite a public valuation exceeding $180 million, adds hidden value. A sum-of-the-parts valuation suggests Link Media is worth $150+ million, broadband $80–90 million, and insurance $30–40 million. Adding Sky Harbour, real estate, and net cash brings intrinsic value to over $550 million, or $17–18 per share—well above today’s mid-teens stock price.
The persistent conglomerate discount stems from BOC’s small-cap status, lack of GAAP profitability, and limited coverage. However, with each segment contributing and management allocating capital with discipline, BOC offers a compelling opportunity with low downside and meaningful upside as its true value is slowly recognized.
Boston Omaha Corporation (BOC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held BOC at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of BOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
