OMNICOM GROUP (OCN.DE) Stock Fundamental Analysis
Europe - FRA:OCN - US6819191064 - Common Stock
63.72 EUR
+0.6 (+0.95%)
Taking everything into account, OCN scores 6 out of 10 in our fundamental rating. OCN was compared to 67 industry peers in the Media industry. OCN has an excellent profitability rating, but there are some minor concerns on its financial health. OCN may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year OCN was profitable.
In the past year OCN had a positive cash flow from operations.
Each year in the past 5 years OCN has been profitable.
Each year in the past 5 years OCN had a positive operating cash flow.
1.2 Ratios
OCN's Return On Assets of 4.63% is fine compared to the rest of the industry. OCN outperforms 77.27% of its industry peers.
OCN has a Return On Equity of 28.93%. This is amongst the best in the industry. OCN outperforms 89.39% of its industry peers.
OCN's Return On Invested Capital of 14.29% is amongst the best of the industry. OCN outperforms 95.45% of its industry peers.
OCN had an Average Return On Invested Capital over the past 3 years of 13.47%. This is significantly above the industry average of 7.85%.
The 3 year average ROIC (13.47%) for OCN is below the current ROIC(14.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROIC | 14.29% |
ROA(3y)4.95%
ROA(5y)4.64%
ROE(3y)38.09%
ROE(5y)37.59%
ROIC(3y)13.47%
ROIC(5y)12.82%
1.3 Margins
OCN's Profit Margin of 8.31% is amongst the best of the industry. OCN outperforms 81.82% of its industry peers.
In the last couple of years the Profit Margin of OCN has remained more or less at the same level.
Looking at the Operating Margin, with a value of 15.00%, OCN belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
OCN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 26.90%, OCN is doing worse than 77.27% of the companies in the same industry.
In the last couple of years the Gross Margin of OCN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% |
OM growth 3Y-0.15%
OM growth 5Y1.06%
PM growth 3Y-1.42%
PM growth 5Y1.06%
GM growth 3Y-0.09%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OCN is creating value.
OCN has less shares outstanding than it did 1 year ago.
OCN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OCN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that OCN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.71, OCN is in line with its industry, outperforming 57.58% of the companies in the same industry.
The Debt to FCF ratio of OCN is 3.78, which is a good value as it means it would take OCN, 3.78 years of fcf income to pay off all of its debts.
OCN has a better Debt to FCF ratio (3.78) than 66.67% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that OCN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.06, OCN perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.71 |
ROIC/WACC2.18
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.92 indicates that OCN may have some problems paying its short term obligations.
OCN has a Current ratio of 0.92. This is comparable to the rest of the industry: OCN outperforms 42.42% of its industry peers.
OCN has a Quick Ratio of 0.92. This is a bad value and indicates that OCN is not financially healthy enough and could expect problems in meeting its short term obligations.
OCN has a Quick ratio (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
OCN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.01%.
Measured over the past 5 years, OCN shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
OCN shows a small growth in Revenue. In the last year, the Revenue has grown by 4.13%.
The Revenue has been growing slightly by 0.96% on average over the past years.
EPS 1Y (TTM)7.01%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%10.34%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%3.98%
3.2 Future
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y7.42%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
EPS Next 5Y5.4%
Revenue Next Year3.58%
Revenue Next 2Y3.43%
Revenue Next 3Y1.95%
Revenue Next 5Y2.19%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 8.78, the valuation of OCN can be described as reasonable.
81.82% of the companies in the same industry are more expensive than OCN, based on the Price/Earnings ratio.
OCN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 7.80, which indicates a rather cheap valuation of OCN.
Based on the Price/Forward Earnings ratio, OCN is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, OCN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OCN.
Based on the Price/Free Cash Flow ratio, OCN is valued a bit cheaper than 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
OCN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OCN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)1.5
EPS Next 2Y8.33%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
OCN has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.17, OCN pays a bit more dividend than its industry peers.
OCN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
5.2 History
The dividend of OCN has a limited annual growth rate of 1.83%.
Dividend Growth(5Y)1.83%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
OCN pays out 41.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of OCN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.26%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
FRA:OCN (11/13/2025, 7:00:00 PM)
63.72
+0.6 (+0.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners116.16%
Inst Owner ChangeN/A
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap12.34B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend2.42
Dividend Growth(5Y)1.83%
DP41.26%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)1.66%
Max EPS beat(2)2.6%
EPS beat(4)4
Avg EPS beat(4)2.28%
Min EPS beat(4)0.87%
Max EPS beat(4)3.99%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)9
Avg EPS beat(12)2.62%
EPS beat(16)13
Avg EPS beat(16)3.64%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)0.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.31%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 7.8 | ||
| P/S | 0.89 | ||
| P/FCF | 8.57 | ||
| P/OCF | 7.83 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.43 |
EPS(TTM)7.26
EY11.39%
EPS(NY)8.17
Fwd EY12.82%
FCF(TTM)7.44
FCFY11.67%
OCF(TTM)8.14
OCFY12.78%
SpS71.64
BVpS20.57
TBVpS-30.28
PEG (NY)1.18
PEG (5Y)1.5
Graham Number57.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROCE | 19.44% | ||
| ROIC | 14.29% | ||
| ROICexc | 19.69% | ||
| ROICexgc | N/A | ||
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% | ||
| FCFM | 10.38% |
ROA(3y)4.95%
ROA(5y)4.64%
ROE(3y)38.09%
ROE(5y)37.59%
ROIC(3y)13.47%
ROIC(5y)12.82%
ROICexc(3y)20.9%
ROICexc(5y)21.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.31%
ROCE(5y)17.43%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-5.78%
ROICexc growth 5Y-4.39%
OM growth 3Y-0.15%
OM growth 5Y1.06%
PM growth 3Y-1.42%
PM growth 5Y1.06%
GM growth 3Y-0.09%
GM growth 5Y0.37%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 66.07% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 12.85 | ||
| Cash Conversion | 68.94% | ||
| Profit Quality | 124.99% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.71 |
F-Score6
WACC6.55%
ROIC/WACC2.18
Cap/Depr(3y)43.65%
Cap/Depr(5y)95.75%
Cap/Sales(3y)0.66%
Cap/Sales(5y)1.44%
Profit Quality(3y)89.53%
Profit Quality(5y)106.8%
High Growth Momentum
Growth
EPS 1Y (TTM)7.01%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%10.34%
EPS Next Y7.42%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
EPS Next 5Y5.4%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%3.98%
Revenue Next Year3.58%
Revenue Next 2Y3.43%
Revenue Next 3Y1.95%
Revenue Next 5Y2.19%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year13.31%
EBIT Next 3Y11.29%
EBIT Next 5Y7.68%
FCF growth 1Y131.29%
FCF growth 3Y7.57%
FCF growth 5Y-1.91%
OCF growth 1Y128.8%
OCF growth 3Y-3.77%
OCF growth 5Y-1.36%
OMNICOM GROUP / OCN.DE FAQ
What is the ChartMill fundamental rating of OMNICOM GROUP (OCN.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OCN.DE.
Can you provide the valuation status for OMNICOM GROUP?
ChartMill assigns a valuation rating of 7 / 10 to OMNICOM GROUP (OCN.DE). This can be considered as Undervalued.
What is the profitability of OCN stock?
OMNICOM GROUP (OCN.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for OCN stock?
The Price/Earnings (PE) ratio for OMNICOM GROUP (OCN.DE) is 8.78 and the Price/Book (PB) ratio is 3.1.
What is the expected EPS growth for OMNICOM GROUP (OCN.DE) stock?
The Earnings per Share (EPS) of OMNICOM GROUP (OCN.DE) is expected to grow by 7.42% in the next year.