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%)
IPG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 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
In the past year IPG was profitable.
IPG had a positive operating cash flow in the past year.
IPG had positive earnings in each of the past 5 years.
Each year in the past 5 years IPG had a positive operating cash flow.
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.
With an excellent Return On Invested Capital value of 12.77%, IPG belongs to the best 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 7.07%.
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
With a decent Profit Margin value of 5.35%, IPG is doing good in 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.
IPG's Operating Margin has improved in the last couple of years.
IPG has a worse Gross Margin (18.23%) 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.
Compared to 5 years ago, IPG has less shares outstanding
Compared to 1 year ago, IPG has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 1.68, IPG is doing good in the industry, outperforming 64.29% of the companies in the same industry.
IPG has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as IPG would need 3.69 years to pay back of all of its debts.
IPG has a better Debt to FCF ratio (3.69) than 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.
With a Debt to Equity ratio value of 0.81, IPG perfoms like the industry average, outperforming 50.00% of the companies in the same 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.
With a Current ratio value of 1.08, IPG perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
IPG has a Quick Ratio of 1.08. 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 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
IPG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.46%.
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.
Looking at the last year, IPG shows a decrease in Revenue. The Revenue has decreased by -5.96% in the last year.
The Revenue has been growing slightly by 0.90% on average over the past years.
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
Based on estimates for the next years, IPG will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.25% on average per year.
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.
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
The Price/Earnings ratio is 8.41, which indicates a very decent valuation of IPG.
83.67% of the companies in the same industry are more expensive than IPG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. IPG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.89, which indicates a rather cheap valuation of IPG.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than the industry average as 76.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, IPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
81.63% of the companies in the same industry are more expensive than IPG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, IPG is valued a bit cheaper than the industry average as 70.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
The 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
With a Yearly Dividend Yield of 5.37%, IPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.31, IPG pays a better dividend. On top of this IPG pays more dividend than 91.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, 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 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 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 Change-0.68%
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%.