INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
USA - NYSE:IPG - US4606901001 - Common Stock
26.02 USD
-0.24 (-0.91%)
26.02 USD
0 (0%)
Overall IPG gets a fundamental rating of 6 out of 10. We evaluated IPG against 99 industry peers in the Media industry. While IPG has a great profitability rating, there are some minor concerns on its financial health. IPG is valued quite cheap, while showing a decent growth score. This is a good combination! IPG also has an excellent dividend rating. These ratings could make IPG a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year IPG was profitable.
IPG had a positive operating cash flow in the past year.
Each year in the past 5 years IPG has been profitable.
IPG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.59%, IPG is doing good in the industry, outperforming 69.70% of the companies in the same industry.
The Return On Equity of IPG (11.90%) is better than 75.76% of its industry peers.
IPG has a Return On Invested Capital of 12.79%. This is amongst the best in the industry. IPG outperforms 92.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is above the industry average of 8.87%.
The 3 year average ROIC (12.24%) for IPG is below the current ROIC(12.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 11.9% | ||
| ROIC | 12.79% |
ROA(3y)4.81%
ROA(5y)4.23%
ROE(3y)23.91%
ROE(5y)22.18%
ROIC(3y)12.24%
ROIC(5y)11.44%
1.3 Margins
IPG has a better Profit Margin (4.27%) than 68.69% of its industry peers.
In the last couple of years the Profit Margin of IPG has remained more or less at the same level.
IPG has a Operating Margin of 14.02%. This is in the better half of the industry: IPG outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG's Gross Margin of 17.91% is on the low side compared to the rest of the industry. IPG is outperformed by 76.77% of its industry peers.
IPG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.02% | ||
| PM (TTM) | 4.27% | ||
| GM | 17.91% |
OM growth 3Y-1.81%
OM growth 5Y4.07%
PM growth 3Y-11.51%
PM growth 5Y0.1%
GM growth 3Y-2.02%
GM growth 5Y3.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IPG is still creating some value.
IPG has less shares outstanding than it did 1 year ago.
IPG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IPG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that IPG is in the distress zone and has some risk of bankruptcy.
IPG has a Altman-Z score of 1.72. This is in the better half of the industry: IPG outperforms 63.64% of its industry peers.
The Debt to FCF ratio of IPG is 3.52, which is a good value as it means it would take IPG, 3.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.52, IPG is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
IPG has a Debt/Equity ratio of 0.80. This is a neutral value indicating IPG is somewhat dependend on debt financing.
IPG has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 1.72 |
ROIC/WACC1.62
WACC7.92%
2.3 Liquidity
IPG has a Current Ratio of 1.07. This is a normal value and indicates that IPG is financially healthy and should not expect problems in meeting its short term obligations.
IPG has a Current ratio (1.07) which is comparable to the rest of the industry.
A Quick Ratio of 1.07 indicates that IPG should not have too much problems paying its short term obligations.
The Quick ratio of IPG (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.40% over the past year.
Measured over the past 5 years, IPG shows a small growth in Earnings Per Share. The EPS has been growing by 7.46% on average per year.
IPG shows a decrease in Revenue. In the last year, the revenue decreased by -5.16%.
The Revenue has been growing slightly by 0.90% on average over the past years.
EPS 1Y (TTM)1.4%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%22.95%
Revenue 1Y (TTM)-5.16%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-6.63%
3.2 Future
Based on estimates for the next years, IPG will show a small growth in Earnings Per Share. The EPS will grow by 6.58% on average per year.
The Revenue is expected to grow by 1.76% on average over the next years.
EPS Next Y7.62%
EPS Next 2Y7.02%
EPS Next 3Y6.58%
EPS Next 5YN/A
Revenue Next Year-5.88%
Revenue Next 2Y-1.65%
Revenue Next 3Y-0.13%
Revenue Next 5Y1.76%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
IPG is valuated reasonably with a Price/Earnings ratio of 9.00.
80.81% of the companies in the same industry are more expensive than IPG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IPG to the average of the S&P500 Index (27.41), we can say IPG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.17 indicates a reasonable valuation of IPG.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than 75.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. IPG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IPG is valued a bit cheaper than 78.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 71.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 6.45 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)1.21
EPS Next 2Y7.02%
EPS Next 3Y6.58%
5. Dividend
5.1 Amount
IPG has a Yearly Dividend Yield of 4.94%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.58. IPG pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
On average, the dividend of IPG grows each year by 7.02%, which is quite nice.
IPG has paid a dividend for at least 10 years, which is a reliable track record.
IPG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.02%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
IPG pays out 111.48% of its income as dividend. This is not a sustainable payout ratio.
IPG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP111.48%
EPS Next 2Y7.02%
EPS Next 3Y6.58%
26.02
-0.24 (-0.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.72%
Inst Owner Change-3.88%
Ins Owners0.44%
Ins Owner Change2.62%
Market Cap9.52B
Analysts72
Price Target32.75 (25.86%)
Short Float %6.15%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Yearly Dividend1.32
Dividend Growth(5Y)7.02%
DP111.48%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.62%
Min EPS beat(2)20.37%
Max EPS beat(2)32.87%
EPS beat(4)2
Avg EPS beat(4)11.42%
Min EPS beat(4)-6.3%
Max EPS beat(4)32.87%
EPS beat(8)5
Avg EPS beat(8)5.96%
EPS beat(12)7
Avg EPS beat(12)4.75%
EPS beat(16)11
Avg EPS beat(16)6.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)-0.18%
Revenue beat(4)1
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)13.99%
Revenue beat(8)1
Avg Revenue beat(8)0.39%
Revenue beat(12)3
Avg Revenue beat(12)2.32%
Revenue beat(16)7
Avg Revenue beat(16)5.81%
PT rev (1m)-1.06%
PT rev (3m)-2.86%
EPS NQ rev (1m)-2.04%
EPS NQ rev (3m)12.61%
EPS NY rev (1m)11.58%
EPS NY rev (3m)12.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 8.17 | ||
| P/S | 0.92 | ||
| P/FCF | 11.33 | ||
| P/OCF | 9.93 | ||
| P/B | 2.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)2.89
EY11.11%
EPS(NY)3.18
Fwd EY12.24%
FCF(TTM)2.3
FCFY8.82%
OCF(TTM)2.62
OCFY10.08%
SpS28.28
BVpS10.15
TBVpS-4.73
PEG (NY)1.18
PEG (5Y)1.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.59% | ||
| ROE | 11.9% | ||
| ROCE | 17.43% | ||
| ROIC | 12.79% | ||
| ROICexc | 15.74% | ||
| ROICexgc | 79.23% | ||
| OM | 14.02% | ||
| PM (TTM) | 4.27% | ||
| GM | 17.91% | ||
| FCFM | 8.12% |
ROA(3y)4.81%
ROA(5y)4.23%
ROE(3y)23.91%
ROE(5y)22.18%
ROIC(3y)12.24%
ROIC(5y)11.44%
ROICexc(3y)16.75%
ROICexc(5y)16.19%
ROICexgc(3y)154.9%
ROICexgc(5y)748.63%
ROCE(3y)16.68%
ROCE(5y)15.58%
ROICexcg growth 3Y-66.71%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y-3.72%
ROICexc growth 5Y7.42%
OM growth 3Y-1.81%
OM growth 5Y4.07%
PM growth 3Y-11.51%
PM growth 5Y0.1%
GM growth 3Y-2.02%
GM growth 5Y3.12%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.52 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 47.51% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.38% | ||
| Profit Quality | 190.11% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.72 |
F-Score6
WACC7.92%
ROIC/WACC1.62
Cap/Depr(3y)62.54%
Cap/Depr(5y)62.81%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.67%
Profit Quality(3y)70.86%
Profit Quality(5y)177.68%
High Growth Momentum
Growth
EPS 1Y (TTM)1.4%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%22.95%
EPS Next Y7.62%
EPS Next 2Y7.02%
EPS Next 3Y6.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.16%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-6.63%
Revenue Next Year-5.88%
Revenue Next 2Y-1.65%
Revenue Next 3Y-0.13%
Revenue Next 5Y1.76%
EBIT growth 1Y-2.49%
EBIT growth 3Y-0.39%
EBIT growth 5Y5.01%
EBIT Next Year13.67%
EBIT Next 3Y10.74%
EBIT Next 5Y6.41%
FCF growth 1Y48.54%
FCF growth 3Y-21.39%
FCF growth 5Y-7.25%
OCF growth 1Y27.79%
OCF growth 3Y-20.19%
OCF growth 5Y-7.15%