INTERPUBLIC GROUP OF COS INC (IPG) Fundamental Analysis & Valuation

NYSE:IPG • US4606901001

Current stock price

24.57 USD
-0.49 (-1.96%)
At close:
24.57 USD
0 (0%)
After Hours:

This IPG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. IPG Profitability Analysis

1.1 Basic Checks

  • In the past year IPG was profitable.
  • In the past year IPG had a positive cash flow from operations.
  • 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.
IPG Yearly Net Income VS EBIT VS OCF VS FCFIPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • The Return On Assets of IPG (3.22%) is better than 68.37% of its industry peers.
  • IPG's Return On Equity of 14.93% is amongst the best of the industry. IPG outperforms 83.67% of its industry peers.
  • IPG's Return On Invested Capital of 12.77% is amongst the best of the industry. IPG outperforms 90.82% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for IPG is above the industry average of 7.76%.
  • The 3 year average ROIC (12.24%) for IPG is below the current ROIC(12.77%), indicating increased profibility in the last year.
Industry RankSector 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%
IPG Yearly ROA, ROE, ROICIPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

  • The Profit Margin of IPG (5.35%) is better than 71.43% of its industry peers.
  • 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 (14.03%) than 75.51% of its industry peers.
  • IPG's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 18.23%, IPG is not doing good in the industry: 75.51% 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 RankSector 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%
IPG Yearly Profit, Operating, Gross MarginsIPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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5

2. IPG Health Analysis

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.
  • IPG has less shares outstanding than it did 1 year ago.
  • IPG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, IPG has an improved debt to assets ratio.
IPG Yearly Shares OutstandingIPG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
IPG Yearly Total Debt VS Total AssetsIPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 3.69, IPG is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
  • A Debt/Equity ratio of 0.81 indicates that IPG is somewhat dependend on debt financing.
  • IPG has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: IPG outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF 3.69
Altman-Z 1.68
ROIC/WACC1.61
WACC7.95%
IPG Yearly LT Debt VS Equity VS FCFIPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.08 indicates that IPG should not have too much problems paying its short term obligations.
  • IPG's Current ratio of 1.08 is in line compared to the rest of the industry. IPG outperforms 44.90% of 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 RankSector Rank
Current Ratio 1.08
Quick Ratio 1.08
IPG Yearly Current Assets VS Current LiabilitesIPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. IPG Growth Analysis

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.
  • IPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.90% yearly.
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.
  • IPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.59% yearly.
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.
IPG Yearly Revenue VS EstimatesIPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2B 4B 6B 8B 10B
IPG Yearly EPS VS EstimatesIPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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8

4. IPG Valuation Analysis

4.1 Price/Earnings Ratio

  • IPG is valuated reasonably with a Price/Earnings ratio of 8.41.
  • IPG's Price/Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 83.67% of the companies in the same industry.
  • IPG is valuated cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 7.89, the valuation of IPG can be described as very cheap.
  • 76.53% 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 (22.29), we can say IPG is valued rather cheaply.
Industry RankSector Rank
PE 8.41
Fwd PE 7.89
IPG Price Earnings VS Forward Price EarningsIPG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, IPG is valued cheaper than 81.63% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, IPG is valued a bit cheaper than 70.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.01
EV/EBITDA 6.11
IPG Per share dataIPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. IPG Dividend Analysis

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 1.07. IPG pays more dividend than 91.84% of the companies in the same industry.
  • IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector 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 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)7.02%
Div Incr Years12
Div Non Decr Years13
IPG Yearly Dividends per shareIPG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 89.67% of the earnings are spent on dividend by IPG. 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%
IPG Yearly Income VS Free CF VS DividendIPG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
IPG Dividend Payout.IPG Dividend Payout, showing the Payout Ratio.IPG Dividend Payout.PayoutRetained Earnings

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IPG Fundamentals: All Metrics, Ratios and Statistics

INTERPUBLIC GROUP OF COS INC

NYSE:IPG (11/26/2025, 8:04:00 PM)

After market: 24.57 0 (0%)

24.57

-0.49 (-1.96%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-10
Earnings (Next)02-10
Inst Owners103.89%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner Change-147.4%
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 RankSector 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 RankSector 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 Number25.7798 (4.92%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


How profitable is INTERPUBLIC GROUP OF COS INC (IPG) stock?

INTERPUBLIC GROUP OF COS INC (IPG) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for IPG stock?

The Price/Earnings (PE) ratio for INTERPUBLIC GROUP OF COS INC (IPG) is 8.41 and the Price/Book (PB) ratio is 2.43.


What is the financial health of INTERPUBLIC GROUP OF COS INC (IPG) stock?

The financial health rating of INTERPUBLIC GROUP OF COS INC (IPG) is 5 / 10.