OMNICOM GROUP (OMC)
US6819191064 - Common Stock
OMC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 96 industry peers in the Media industry. OMC has an excellent profitability rating, but there are concerns on its financial health. OMC has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OMC had positive earnings in the past year.
OMC had a positive operating cash flow in the past year.
Each year in the past 5 years OMC has been profitable.
In the past 5 years OMC always reported a positive cash flow from operatings.
1.2 Ratios
OMC's Return On Assets of 5.44% is amongst the best of the industry. OMC outperforms 87.37% of its industry peers.
OMC has a Return On Equity of 41.53%. This is amongst the best in the industry. OMC outperforms 94.74% of its industry peers.
With an excellent Return On Invested Capital value of 13.16%, OMC belongs to the best of the industry, outperforming 91.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OMC is significantly above the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 41.53% | ||
| ROIC | 13.16% |
ROA(3y)4.93%
ROA(5y)4.64%
ROE(3y)40.67%
ROE(5y)39.91%
ROIC(3y)13.31%
ROIC(5y)12.97%
1.3 Margins
The Profit Margin of OMC (9.96%) is better than 84.21% of its industry peers.
In the last couple of years the Profit Margin of OMC has grown nicely.
OMC has a better Operating Margin (14.99%) than 81.05% of its industry peers.
In the last couple of years the Operating Margin of OMC has grown nicely.
Looking at the Gross Margin, with a value of 27.07%, OMC is doing worse than 68.42% of the companies in the same industry.
In the last couple of years the Gross Margin of OMC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 9.96% | ||
| GM | 27.07% |
OM growth 3Y4.17%
OM growth 5Y3.5%
PM growth 3Y9.69%
PM growth 5Y1.78%
GM growth 3Y0.81%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
OMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
OMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OMC has less shares outstanding
Compared to 1 year ago, OMC has an improved debt to assets ratio.
2.2 Solvency
OMC has an Altman-Z score of 1.80. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
OMC's Altman-Z score of 1.80 is fine compared to the rest of the industry. OMC outperforms 67.37% of its industry peers.
The Debt to FCF ratio of OMC is 5.02, which is a neutral value as it means it would take OMC, 5.02 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of OMC (5.02) is better than 78.95% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that OMC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.54, OMC is not doing good in the industry: 68.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 5.02 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.73
WACC7.59%
2.3 Liquidity
OMC has a Current Ratio of 0.93. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of OMC (0.93) is worse than 81.05% of its industry peers.
OMC has a Quick Ratio of 0.93. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.87, OMC is doing worse than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.20%.
The Earnings Per Share has been growing slightly by 5.26% on average over the past years.
Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 3.89% in the last year.
Measured over the past years, OMC shows a decrease in Revenue. The Revenue has been decreasing by -0.79% on average per year.
EPS 1Y (TTM)6.2%
EPS 3Y12.42%
EPS 5Y5.26%
EPS growth Q2Q7.05%
Revenue 1Y (TTM)3.89%
Revenue growth 3Y3.71%
Revenue growth 5Y-0.79%
Revenue growth Q2Q5.44%
3.2 Future
OMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.11% yearly.
The Revenue is expected to grow by 2.08% on average over the next years.
EPS Next Y5.93%
EPS Next 2Y6.74%
EPS Next 3Y7.16%
EPS Next 5Y5.11%
Revenue Next Year6.74%
Revenue Next 2Y5.23%
Revenue Next 3Y4.86%
Revenue Next 5Y2.08%
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 12.31, OMC is valued correctly.
OMC's Price/Earnings ratio is a bit cheaper when compared to the industry. OMC is cheaper than 75.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.67. OMC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.97, the valuation of OMC can be described as very reasonable.
OMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMC is cheaper than 69.47% of the companies in the same industry.
OMC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 10.97 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 62.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 9.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.34
EPS Next 2Y6.74%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, OMC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.31, OMC pays a better dividend. On top of this OMC pays more dividend than 81.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OMC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of OMC has a limited annual growth rate of 3.05%.
OMC has paid a dividend for at least 10 years, which is a reliable track record.
OMC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.05%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
OMC pays out 37.72% of its income as dividend. This is a sustainable payout ratio.
The dividend of OMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.72%
EPS Next 2Y6.74%
EPS Next 3Y7.16%
OMNICOM GROUP
NYSE:OMC (4/30/2024, 7:16:04 PM)
After market: 92.84 0 (0%)92.84
-3.05 (-3.18%)
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 Cap18.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 12.31 | ||
| Fwd PE | 10.97 | ||
| 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)2.07
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 41.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.99% | ||
| PM (TTM) | 9.96% | ||
| GM | 27.07% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.87 | ||
| 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)6.2%
EPS 3Y12.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.89%
Revenue growth 3Y3.71%
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