INTERPUBLIC GROUP OF COS INC (IPG)
US4606901001 - Common Stock
Taking everything into account, IPG scores 6 out of 10 in our fundamental rating. IPG was compared to 96 industry peers in the Media industry. IPG has an excellent profitability rating, but there are some minor concerns on its financial health. IPG has a decent growth rate and is not valued too expensively. IPG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year IPG was profitable.
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 (5.70%) than 88.42% of its industry peers.
With an excellent Return On Equity value of 27.86%, IPG belongs to the best of the industry, outperforming 92.63% of the companies in the same industry.
IPG has a Return On Invested Capital of 12.75%. This is amongst the best in the industry. IPG outperforms 90.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is above the industry average of 7.68%.
The last Return On Invested Capital (12.75%) for IPG is above the 3 year average (12.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 27.86% | ||
| ROIC | 12.75% |
ROA(3y)5.16%
ROA(5y)4.22%
ROE(3y)26.87%
ROE(5y)23.27%
ROIC(3y)12.64%
ROIC(5y)11.46%
1.3 Margins
IPG has a better Profit Margin (10.09%) than 85.26% of its industry peers.
In the last couple of years the Profit Margin of IPG has grown nicely.
Looking at the Operating Margin, with a value of 13.62%, IPG is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
IPG's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.66%, IPG is not doing good in the industry: 81.05% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of IPG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.62% | ||
| PM (TTM) | 10.09% | ||
| GM | 16.66% |
OM growth 3Y7.18%
OM growth 5Y5.56%
PM growth 3Y37.58%
PM growth 5Y9.62%
GM growth 3Y3.74%
GM growth 5Y3.27%
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.
The number of shares outstanding for IPG has been reduced compared to 1 year ago.
IPG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IPG has a worse debt to assets ratio.
2.2 Solvency
IPG has an Altman-Z score of 1.63. 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 1.63 is fine compared to the rest of the industry. IPG outperforms 62.11% of its industry peers.
IPG has a debt to FCF ratio of 8.53. This is a slightly negative value and a sign of low solvency as IPG would need 8.53 years to pay back of all of its debts.
IPG has a Debt to FCF ratio of 8.53. This is in the better half of the industry: IPG outperforms 66.32% of its industry peers.
IPG has a Debt/Equity ratio of 0.75. This is a neutral value indicating IPG is somewhat dependend on debt financing.
The Debt to Equity ratio of IPG (0.75) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 8.53 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.49
WACC8.55%
2.3 Liquidity
IPG has a Current Ratio of 1.06. 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 of 1.06. This is in the lower half of the industry: IPG underperforms 77.89% of its industry peers.
A Quick Ratio of 1.06 indicates that IPG should not have too much problems paying its short term obligations.
The Quick ratio of IPG (1.06) is worse than 76.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
IPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.91%.
Measured over the past years, IPG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.11% on average per year.
IPG shows a decrease in Revenue. In the last year, the revenue decreased by -0.35%.
The Revenue has been growing slightly by 2.31% on average over the past years.
EPS 1Y (TTM)2.91%
EPS 3Y17.83%
EPS 5Y9.11%
EPS growth Q2Q15.69%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.32%
Revenue growth 5Y2.31%
Revenue growth Q2Q1.25%
3.2 Future
The Earnings Per Share is expected to grow by 5.21% on average over the next years.
The Revenue is expected to grow by 3.80% on average over the next years.
EPS Next Y2.42%
EPS Next 2Y4.59%
EPS Next 3Y5.21%
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y2.83%
Revenue Next 3Y3.16%
Revenue Next 5Y3.8%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IPG is valuated reasonably with a Price/Earnings ratio of 11.12.
IPG's Price/Earnings ratio is a bit cheaper when compared to the industry. IPG is cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of IPG to the average of the S&P500 Index (24.84), we can say IPG is valued rather cheaply.
The Price/Forward Earnings ratio is 10.86, which indicates a very decent valuation of IPG.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than 71.58% of the companies in the same industry.
IPG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
71.58% of the companies in the same industry are more expensive than IPG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.63 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)1.22
EPS Next 2Y4.59%
EPS Next 3Y5.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, IPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.30, IPG pays a better dividend. On top of this IPG pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of IPG is nicely growing with an annual growth rate of 8.30%!
IPG has been paying a dividend for at least 10 years, so it has 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)8.3%
Div Incr Years11
Div Non Decr Years12
5.3 Sustainability
43.62% of the earnings are spent on dividend by IPG. This is a bit on the high side, but may be sustainable.
The dividend of IPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.62%
EPS Next 2Y4.59%
EPS Next 3Y5.21%
INTERPUBLIC GROUP OF COS INC
NYSE:IPG (4/26/2024, 7:04:00 PM)
After market: 31.47 0 (0%)31.47
+0.31 (+0.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 10.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.59
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 27.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.62% | ||
| PM (TTM) | 10.09% | ||
| GM | 16.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)2.91%
EPS 3Y17.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y6.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y