INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IPG - US4606901001 - Common Stock
24.57 USD
-0.49 (-1.96%)
24.57 USD
0 (0%)
Taking everything into account, IPG scores 6 out of 10 in our fundamental rating. IPG was compared to 91 industry peers in the Media industry. IPG scores excellent on profitability, but there are some minor concerns on its financial health. IPG may be a bit undervalued, certainly considering the very reasonable score on growth IPG also has an excellent dividend rating. With these ratings, IPG could be worth investigating further 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
IPG has a better Return On Assets (3.22%) than 68.37% of its industry peers.
IPG has a better Return On Equity (14.93%) than 83.67% of its industry peers.
IPG has a Return On Invested Capital of 12.77%. This is amongst the best in the industry. IPG outperforms 90.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 6.93%.
The 3 year average ROIC (12.24%) for IPG is below the current ROIC(12.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 14.93% | ||
| ROIC | 12.77% |
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 (5.35%) than 71.43% 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's Operating Margin of 14.03% is fine compared to the rest of the industry. IPG outperforms 75.51% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
Looking at the Gross Margin, with a value of 18.23%, IPG is doing worse than 75.51% of the companies in the same industry.
In the last couple of years the Gross Margin of IPG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.03% | ||
| PM (TTM) | 5.35% | ||
| GM | 18.23% |
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
IPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
IPG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IPG has been reduced compared to 5 years ago.
The debt/assets ratio for IPG has been reduced compared to a year ago.
2.2 Solvency
IPG has an Altman-Z score of 1.68. This is a bad value and indicates that IPG is not financially healthy and even has some risk of bankruptcy.
IPG's Altman-Z score of 1.68 is fine compared to the rest of the industry. IPG outperforms 64.29% of its industry peers.
The Debt to FCF ratio of IPG is 3.69, which is a good value as it means it would take IPG, 3.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.69, IPG is doing good in the industry, outperforming 77.55% of the companies in the same industry.
IPG has a Debt/Equity ratio of 0.81. This is a neutral value indicating IPG is somewhat dependend on debt financing.
IPG's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. IPG outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.61
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.08 indicates that IPG should not have too much problems paying its short term obligations.
IPG has a Current ratio of 1.08. This is comparable to the rest of the industry: IPG outperforms 44.90% of its industry peers.
A Quick Ratio of 1.08 indicates that IPG should not have too much problems paying its short term obligations.
IPG's Quick ratio of 1.08 is in line compared to the rest of the industry. IPG outperforms 45.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.46% over the past year.
The Earnings Per Share has been growing slightly by 7.46% on average over the past years.
The Revenue has decreased by -5.96% 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)2.46%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%4.29%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-4.78%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
Based on estimates for the next years, IPG will show a small growth in Revenue. The Revenue will grow by 1.59% on average per year.
EPS Next Y6.28%
EPS Next 2Y5.83%
EPS Next 3Y6.41%
EPS Next 5Y8.25%
Revenue Next Year-5.87%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.27%
Revenue Next 5Y1.59%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.41, the valuation of IPG can be described as very reasonable.
83.67% of the companies in the same industry are more expensive than IPG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, IPG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.89, the valuation of IPG can be described as very cheap.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than 76.53% of the companies 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 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
IPG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IPG is cheaper than 81.63% of the companies in the same industry.
IPG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IPG is cheaper than 70.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
IPG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.34
PEG (5Y)1.13
EPS Next 2Y5.83%
EPS Next 3Y6.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, IPG is a good candidate for dividend investing.
IPG's Dividend Yield is rather good when compared to the industry average which is at 1.27. IPG pays more dividend than 91.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
5.2 History
The dividend of IPG is nicely growing with an annual growth rate of 7.02%!
IPG has been paying a dividend for at least 10 years, so it has 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
89.67% of the earnings are spent on dividend by IPG. This is not a sustainable payout ratio.
IPG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP89.67%
EPS Next 2Y5.83%
EPS Next 3Y6.41%
24.57
-0.49 (-1.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners103.89%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change-125.46%
Market Cap8.88B
Revenue(TTM)10.21B
Net Income(TTM)545.80M
Analysts72
Price Target33.24 (35.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend1.32
Dividend Growth(5Y)7.02%
DP89.67%
Div Incr Years12
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.81%
Min EPS beat(2)-1.24%
Max EPS beat(2)32.87%
EPS beat(4)2
Avg EPS beat(4)11.43%
Min EPS beat(4)-6.3%
Max EPS beat(4)32.87%
EPS beat(8)5
Avg EPS beat(8)6.41%
EPS beat(12)6
Avg EPS beat(12)4.2%
EPS beat(16)10
Avg EPS beat(16)4.97%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)2.39%
Min Revenue beat(4)-3.5%
Max Revenue beat(4)13.99%
Revenue beat(8)1
Avg Revenue beat(8)0.45%
Revenue beat(12)2
Avg Revenue beat(12)0.84%
Revenue beat(16)6
Avg Revenue beat(16)4.59%
PT rev (1m)-0.37%
PT rev (3m)0.41%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)-1.41%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.87 | ||
| P/FCF | 11.01 | ||
| P/OCF | 9.71 | ||
| P/B | 2.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.11 |
EPS(TTM)2.92
EY11.88%
EPS(NY)3.11
Fwd EY12.67%
FCF(TTM)2.23
FCFY9.08%
OCF(TTM)2.53
OCFY10.3%
SpS28.24
BVpS10.12
TBVpS-4.73
PEG (NY)1.34
PEG (5Y)1.13
Graham Number25.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 14.93% | ||
| ROCE | 17.43% | ||
| ROIC | 12.77% | ||
| ROICexc | 15.66% | ||
| ROICexgc | 76.49% | ||
| OM | 14.03% | ||
| PM (TTM) | 5.35% | ||
| GM | 18.23% | ||
| FCFM | 7.9% |
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%
ROICexgc growth 3Y-66.71%
ROICexgc 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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 43.78% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.46% | ||
| Profit Quality | 147.82% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.68 |
F-Score5
WACC7.95%
ROIC/WACC1.61
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)2.46%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%4.29%
EPS Next Y6.28%
EPS Next 2Y5.83%
EPS Next 3Y6.41%
EPS Next 5Y8.25%
Revenue 1Y (TTM)-5.96%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-4.78%
Revenue Next Year-5.87%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.27%
Revenue Next 5Y1.59%
EBIT growth 1Y-2.94%
EBIT growth 3Y-0.39%
EBIT growth 5Y5.01%
EBIT Next Year24.1%
EBIT Next 3Y10.64%
EBIT Next 5Y6.41%
FCF growth 1Y8.91%
FCF growth 3Y-21.39%
FCF growth 5Y-7.25%
OCF growth 1Y-1.33%
OCF growth 3Y-20.19%
OCF growth 5Y-7.15%
INTERPUBLIC GROUP OF COS INC / IPG FAQ
Can you provide the ChartMill fundamental rating for INTERPUBLIC GROUP OF COS INC?
ChartMill assigns a fundamental rating of 6 / 10 to IPG.
What is the valuation status of INTERPUBLIC GROUP OF COS INC (IPG) stock?
ChartMill assigns a valuation rating of 8 / 10 to INTERPUBLIC GROUP OF COS INC (IPG). This can be considered as Undervalued.
What is the profitability of IPG stock?
INTERPUBLIC GROUP OF COS INC (IPG) has a profitability rating of 8 / 10.
What is the earnings growth outlook for INTERPUBLIC GROUP OF COS INC?
The Earnings per Share (EPS) of INTERPUBLIC GROUP OF COS INC (IPG) is expected to grow by 6.28% in the next year.
How sustainable is the dividend of INTERPUBLIC GROUP OF COS INC (IPG) stock?
The dividend rating of INTERPUBLIC GROUP OF COS INC (IPG) is 8 / 10 and the dividend payout ratio is 89.67%.