INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
NYSE:IPG - New York Stock Exchange, Inc. - US4606901001 - Common Stock - Currency: USD
Overall IPG gets a fundamental rating of 6 out of 10. We evaluated IPG against 96 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, but it does not seem to be growing. IPG also has an excellent dividend rating. This makes IPG very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
IPG had positive earnings in the past year.
In the past year IPG had a positive cash flow from operations.
In the past 5 years IPG has always 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 2.88%, IPG is doing good in the industry, outperforming 78.13% of the companies in the same industry.
IPG's Return On Equity of 13.77% is amongst the best of the industry. IPG outperforms 81.25% of its industry peers.
IPG has a Return On Invested Capital of 12.47%. This is amongst the best in the industry. IPG outperforms 94.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is significantly above the industry average of 6.73%.
The last Return On Invested Capital (12.47%) for IPG is above the 3 year average (12.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 13.77% | ||
| ROIC | 12.47% |
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
Looking at the Profit Margin, with a value of 4.69%, IPG is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Profit Margin of IPG has remained more or less at the same level.
The Operating Margin of IPG (13.37%) is better than 73.96% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG's Gross Margin of 17.06% is on the low side compared to the rest of the industry. IPG is outperformed by 75.00% of its industry peers.
In the last couple of years the Gross Margin of IPG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.37% | ||
| PM (TTM) | 4.69% | ||
| GM | 17.06% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IPG is creating some value.
Compared to 1 year ago, IPG has less shares outstanding
The number of shares outstanding for IPG has been reduced compared to 5 years ago.
IPG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that IPG is in the distress zone and has some risk of bankruptcy.
IPG has a better Altman-Z score (1.67) than 62.50% of its industry peers.
The Debt to FCF ratio of IPG is 2.82, which is a good value as it means it would take IPG, 2.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.82, IPG belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
IPG has a Debt/Equity ratio of 0.82. This is a neutral value indicating IPG is somewhat dependend on debt financing.
The Debt to Equity ratio of IPG (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.82 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.51
WACC8.24%
2.3 Liquidity
A Current Ratio of 1.07 indicates that IPG should not have too much problems paying its short term obligations.
IPG's Current ratio of 1.07 is on the low side compared to the rest of the industry. IPG is outperformed by 61.46% of its industry peers.
A Quick Ratio of 1.07 indicates that IPG should not have too much problems paying its short term obligations.
IPG's Quick ratio of 1.07 is on the low side compared to the rest of the industry. IPG is outperformed by 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
IPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.14%.
IPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.46% yearly.
The Revenue has decreased by -3.18% in the past year.
IPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
EPS 1Y (TTM)-2.14%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)-3.18%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-8.55%
3.2 Future
The Earnings Per Share is expected to grow by 2.81% on average over the next years.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-4.69%
EPS Next 2Y1.07%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue Next Year-7.57%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.73 indicates a reasonable valuation of IPG.
IPG's Price/Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 82.29% of the companies in the same industry.
IPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
With a Price/Forward Earnings ratio of 8.45, the valuation of IPG can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 75.00% of the companies listed in the same industry.
IPG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
IPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IPG is cheaper than 78.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IPG is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 5.99 |
4.3 Compensation for Growth
The excellent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y1.07%
EPS Next 3Y2.81%
5. Dividend
5.1 Amount
IPG has a Yearly Dividend Yield of 5.24%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.91. IPG pays more dividend than 89.58% of the companies in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
5.2 History
The dividend of IPG is nicely growing with an annual growth rate of 7.02%!
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
100.30% of the earnings are spent on dividend by IPG. This is not a sustainable payout ratio.
The dividend of IPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP100.3%
EPS Next 2Y1.07%
EPS Next 3Y2.81%
24
-0.06 (-0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change0.96%
Ins Owners0.23%
Ins Owner Change8.04%
Market Cap8.87B
Analysts73.33
Price Target33.77 (40.71%)
Short Float %7.6%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.24% |
Yearly Dividend1.32
Dividend Growth(5Y)7.02%
DP100.3%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.04%
Min EPS beat(2)-6.3%
Max EPS beat(2)20.37%
EPS beat(4)2
Avg EPS beat(4)3.7%
Min EPS beat(4)-6.3%
Max EPS beat(4)20.37%
EPS beat(8)4
Avg EPS beat(8)1.03%
EPS beat(12)7
Avg EPS beat(12)2.56%
EPS beat(16)11
Avg EPS beat(16)8.72%
Revenue beat(2)1
Avg Revenue beat(2)6.9%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)13.99%
Revenue beat(4)1
Avg Revenue beat(4)2.29%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)13.99%
Revenue beat(8)1
Avg Revenue beat(8)0.03%
Revenue beat(12)4
Avg Revenue beat(12)3.77%
Revenue beat(16)8
Avg Revenue beat(16)7.07%
PT rev (1m)-1.53%
PT rev (3m)-2.68%
EPS NQ rev (1m)5.74%
EPS NQ rev (3m)1.73%
EPS NY rev (1m)0.54%
EPS NY rev (3m)-3.39%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-4.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.84 | ||
| P/FCF | 8.47 | ||
| P/OCF | 7.55 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.99 |
EPS(TTM)2.75
EY11.46%
EPS(NY)2.84
Fwd EY11.83%
FCF(TTM)2.83
FCFY11.8%
OCF(TTM)3.18
OCFY13.25%
SpS28.45
BVpS9.69
TBVpS-4.97
PEG (NY)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 13.77% | ||
| ROCE | 16.98% | ||
| ROIC | 12.47% | ||
| ROICexc | 16.09% | ||
| ROICexgc | 100.93% | ||
| OM | 13.37% | ||
| PM (TTM) | 4.69% | ||
| GM | 17.06% | ||
| FCFM | 9.96% |
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 | 0.82 | ||
| Debt/FCF | 2.82 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 50.33% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.76% | ||
| Profit Quality | 212.15% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.67 |
F-Score6
WACC8.24%
ROIC/WACC1.51
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)-2.14%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%-8.33%
EPS Next Y-4.69%
EPS Next 2Y1.07%
EPS Next 3Y2.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.18%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-8.55%
Revenue Next Year-7.57%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.76%
EBIT growth 1Y-4.79%
EBIT growth 3Y-0.39%
EBIT growth 5Y5.01%
EBIT Next Year13.04%
EBIT Next 3Y8.29%
EBIT Next 5Y5.28%
FCF growth 1Y103.58%
FCF growth 3Y-21.39%
FCF growth 5Y-7.25%
OCF growth 1Y69.2%
OCF growth 3Y-20.19%
OCF growth 5Y-7.15%