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%)
Overall IPG gets a fundamental rating of 6 out of 10. We evaluated IPG against 91 industry peers in the Media industry. IPG has an excellent profitability rating, but 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! Finally IPG also has an excellent dividend rating. These ratings would make IPG suitable 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.
In the past 5 years IPG has always been profitable.
Each year in the past 5 years IPG had a positive operating cash flow.
1.2 Ratios
IPG has a Return On Assets of 3.22%. This is in the better half of the industry: IPG outperforms 68.37% of its industry peers.
With an excellent Return On Equity value of 14.93%, IPG belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.77%, IPG belongs to the top of the industry, outperforming 90.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
Looking at the Profit Margin, with a value of 5.35%, IPG is in the better half of the industry, outperforming 71.43% 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.
With a decent Operating Margin value of 14.03%, IPG is doing good in the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Operating Margin of IPG has grown nicely.
The Gross Margin of IPG (18.23%) is worse than 75.51% of its industry peers.
IPG's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IPG 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
Based on the Altman-Z score of 1.68, we must say that IPG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of IPG (1.68) is better than 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.
IPG's Debt to FCF ratio of 3.69 is fine compared to the rest of the industry. IPG outperforms 77.55% of its industry peers.
IPG has a Debt/Equity ratio of 0.81. This is a neutral value indicating IPG is somewhat dependend on debt financing.
IPG has a Debt to Equity ratio (0.81) which is comparable to the rest of the industry.
| 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 (1.08) which is in line with its industry peers.
A Quick Ratio of 1.08 indicates that IPG should not have too much problems paying its short term obligations.
IPG has a Quick ratio (1.08) which is comparable to the rest of the industry.
| 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.
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.
The Revenue has decreased by -5.96% in the past year.
Measured over the past years, IPG shows a small growth in Revenue. The Revenue has been growing by 0.90% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 8.41, which indicates a very decent valuation of IPG.
Based on the Price/Earnings ratio, IPG is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
IPG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.87.
With a Price/Forward Earnings ratio of 7.89, the valuation of IPG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 76.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, IPG is valued rather cheaply.
| 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.
The excellent profitability rating of IPG 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
IPG has a Yearly Dividend Yield of 5.37%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 1.28. IPG pays more dividend than 91.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
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 89.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of IPG is growing around the same rate as the earnings are growing. If this keeps up 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%.