INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
USA - NYSE:IPG - US4606901001 - Common Stock
26.55 USD
-0.73 (-2.68%)
26.55 USD
0 (0%)
IPG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. These ratings could make IPG a good candidate 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.
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
IPG's Return On Assets of 2.59% is fine compared to the rest of the industry. IPG outperforms 69.79% of its industry peers.
The Return On Equity of IPG (11.90%) is better than 76.04% of its industry peers.
IPG's Return On Invested Capital of 12.79% is amongst the best of the industry. IPG outperforms 93.75% 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 8.50%.
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
With a decent Profit Margin value of 4.27%, IPG is doing good in the industry, outperforming 68.75% 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.
IPG has a better Operating Margin (14.02%) than 72.92% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG has a worse Gross Margin (17.91%) than 76.04% of its industry peers.
In the last couple of years the Gross Margin of IPG has grown nicely.
| 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
IPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for IPG has been reduced compared to 1 year ago.
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
IPG has an Altman-Z score of 1.73. This is a bad value and indicates that IPG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of IPG (1.73) is better than 63.54% 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.
The Debt to FCF ratio of IPG (3.52) is better than 77.08% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that IPG is somewhat dependend on debt financing.
IPG has a Debt to Equity ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.6
WACC7.99%
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.
IPG has a Quick 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.
With a Quick ratio value of 1.07, IPG perfoms like the industry average, outperforming 44.79% of the companies in the same 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.
IPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.46% yearly.
IPG shows a decrease in Revenue. In the last year, the revenue decreased by -5.16%.
IPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
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 6.47% on average per year.
IPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y7.62%
EPS Next 2Y6.97%
EPS Next 3Y6.47%
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.
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
With a Price/Earnings ratio of 9.19, the valuation of IPG can be described as very reasonable.
80.21% 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 27.70, IPG is valued rather cheaply.
A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of IPG.
75.00% of the companies in the same industry are more expensive than IPG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of IPG to the average of the S&P500 Index (23.15), we can say IPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.35 |
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 77.08% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IPG is valued a bit cheaper than 69.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 6.66 |
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 decent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)1.23
EPS Next 2Y6.97%
EPS Next 3Y6.47%
5. Dividend
5.1 Amount
IPG has a Yearly Dividend Yield of 5.03%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.21. IPG pays more dividend than 91.67% of the companies in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y6.97%
EPS Next 3Y6.47%
26.55
-0.73 (-2.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners99.09%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change2.62%
Market Cap9.71B
Analysts72
Price Target33 (24.29%)
Short Float %6.03%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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)-0.29%
PT rev (3m)-2.1%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)10.67%
EPS NY rev (1m)0%
EPS NY rev (3m)12.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.94 | ||
| P/FCF | 11.57 | ||
| P/OCF | 10.13 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)2.89
EY10.89%
EPS(NY)3.18
Fwd EY11.98%
FCF(TTM)2.3
FCFY8.65%
OCF(TTM)2.62
OCFY9.87%
SpS28.28
BVpS10.15
TBVpS-4.73
PEG (NY)1.21
PEG (5Y)1.23
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 | 1.73 |
F-Score6
WACC7.99%
ROIC/WACC1.6
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 2Y6.97%
EPS Next 3Y6.47%
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%