INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
USA - NYSE:IPG - US4606901001 - Common Stock
25.46 USD
+0.43 (+1.72%)
25.46 USD
0 (0%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
IPG had a positive operating cash flow in the past year.
IPG had positive earnings in each of the past 5 years.
In the past 5 years IPG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.59%, IPG is doing good in the industry, outperforming 68.42% of the companies in the same industry.
IPG's Return On Equity of 11.90% is fine compared to the rest of the industry. IPG outperforms 75.79% of its industry peers.
The Return On Invested Capital of IPG (12.79%) is better than 92.63% of its industry peers.
IPG had an Average Return On Invested Capital over the past 3 years of 12.24%. This is above the industry average of 8.55%.
The last Return On Invested Capital (12.79%) for IPG is above the 3 year average (12.24%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.27%, IPG is in the better half of the industry, outperforming 69.47% 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.
Looking at the Operating Margin, with a value of 14.02%, IPG is in the better half of the industry, outperforming 73.68% 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 (17.91%) is worse than 75.79% 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
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.
The debt/assets ratio for IPG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that IPG is in the distress zone and has some risk of bankruptcy.
IPG has a better Altman-Z score (1.70) than 65.26% of its industry peers.
IPG has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as IPG would need 3.52 years to pay back of all of its debts.
IPG has a Debt to FCF ratio of 3.52. This is in the better half of the industry: IPG outperforms 76.84% of its industry peers.
IPG has a Debt/Equity ratio of 0.80. This is a neutral value indicating IPG is somewhat dependend on debt financing.
IPG's Debt to Equity ratio of 0.80 is in line compared to the rest of the industry. IPG outperforms 51.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.61
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.07 indicates that IPG should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, IPG perfoms like the industry average, outperforming 44.21% of the companies in the same industry.
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 in line compared to the rest of the industry. IPG outperforms 46.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
IPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.40%.
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 -5.16% 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)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
IPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.55% yearly.
Based on estimates for the next years, IPG will show a small growth in Revenue. The Revenue will grow by 1.76% on average per year.
EPS Next Y7.8%
EPS Next 2Y7.13%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue Next Year-5.9%
Revenue Next 2Y-1.69%
Revenue Next 3Y-0.19%
Revenue Next 5Y1.76%
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 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
Based on the Price/Earnings ratio of 8.81, the valuation of IPG can be described as reasonable.
IPG's Price/Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 81.05% of the companies in the same industry.
IPG is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
IPG is valuated cheaply with a Price/Forward Earnings ratio of 7.98.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than 74.74% 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 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 76.84% of the companies listed 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 70.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.09 | ||
| EV/EBITDA | 6.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
IPG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)1.18
EPS Next 2Y7.13%
EPS Next 3Y6.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.27%, IPG is a good candidate for dividend investing.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.35. IPG pays more dividend than 91.58% of the companies in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
5.2 History
On average, the dividend of IPG grows each year by 7.02%, which is quite nice.
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
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 2Y7.13%
EPS Next 3Y6.55%
25.46
+0.43 (+1.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners99.09%
Inst Owner Change-1.23%
Ins Owners0.45%
Ins Owner Change0%
Market Cap9.31B
Revenue(TTM)10.35B
Net Income(TTM)441.70M
Analysts72
Price Target33.36 (31.03%)
Short Float %7.35%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.27% |
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)1.87%
PT rev (3m)0.48%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)0.18%
EPS NY rev (3m)11.78%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.9 | ||
| P/FCF | 11.09 | ||
| P/OCF | 9.71 | ||
| P/B | 2.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.18 |
EPS(TTM)2.89
EY11.35%
EPS(NY)3.19
Fwd EY12.53%
FCF(TTM)2.3
FCFY9.02%
OCF(TTM)2.62
OCFY10.3%
SpS28.28
BVpS10.15
TBVpS-4.73
PEG (NY)1.13
PEG (5Y)1.18
Graham Number25.69
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%
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-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 | 1.7 |
F-Score6
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)1.4%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%22.95%
EPS Next Y7.8%
EPS Next 2Y7.13%
EPS Next 3Y6.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.16%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%-6.63%
Revenue Next Year-5.9%
Revenue Next 2Y-1.69%
Revenue Next 3Y-0.19%
Revenue Next 5Y1.76%
EBIT growth 1Y-2.49%
EBIT growth 3Y-0.39%
EBIT growth 5Y5.01%
EBIT Next Year24.1%
EBIT Next 3Y10.64%
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%
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.
Can you provide the valuation status for INTERPUBLIC GROUP OF COS INC?
ChartMill assigns a valuation rating of 7 / 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 7 / 10.
What is the valuation of INTERPUBLIC GROUP OF COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for INTERPUBLIC GROUP OF COS INC (IPG) is 8.81 and the Price/Book (PB) ratio is 2.51.
Can you provide the financial health for IPG stock?
The financial health rating of INTERPUBLIC GROUP OF COS INC (IPG) is 5 / 10.