OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:OMC • US6819191064
77.04 USD
+1.27 (+1.68%)
At close: Jan 30, 2026
77.04 USD
0 (0%)
After Hours: 1/30/2026, 8:11:40 PM
Overall OMC gets a fundamental rating of 6 out of 10. We evaluated OMC against 93 industry peers in the Media industry. OMC scores excellent on profitability, but there are some minor concerns on its financial health. OMC may be a bit undervalued, certainly considering the very reasonable score on growth Finally OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- OMC had positive earnings in the past year.
- In the past year OMC had a positive cash flow from operations.
- Each year in the past 5 years OMC has been profitable.
- Each year in the past 5 years OMC had a positive operating cash flow.
1.2 Ratios
- OMC's Return On Assets of 4.63% is amongst the best of the industry. OMC outperforms 80.65% of its industry peers.
- OMC has a Return On Equity of 28.93%. This is amongst the best in the industry. OMC outperforms 96.77% of its industry peers.
- OMC's Return On Invested Capital of 14.29% is amongst the best of the industry. OMC outperforms 95.70% of its industry peers.
- OMC had an Average Return On Invested Capital over the past 3 years of 13.47%. This is significantly above the industry average of 7.03%.
- The 3 year average ROIC (13.47%) for OMC 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
- OMC has a better Profit Margin (8.31%) than 80.65% of its industry peers.
- In the last couple of years the Profit Margin of OMC has remained more or less at the same level.
- OMC's Operating Margin of 15.00% is amongst the best of the industry. OMC outperforms 80.65% of its industry peers.
- In the last couple of years the Operating Margin of OMC has remained more or less at the same level.
- OMC's Gross Margin of 26.90% is on the low side compared to the rest of the industry. OMC is outperformed by 67.74% of its industry peers.
- 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 | 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OMC is creating 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 a worse debt to assets ratio.
2.2 Solvency
- OMC has an Altman-Z score of 1.97. This is not the best score and indicates that OMC is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.97, OMC is in the better half of the industry, outperforming 72.04% of the companies in the same industry.
- OMC has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as OMC would need 3.78 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.78, OMC is in the better half of the industry, outperforming 79.57% of the companies in the same industry.
- OMC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- OMC has a Debt to Equity ratio (1.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.89
WACC7.56%
2.3 Liquidity
- OMC has a Current Ratio of 0.92. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
- OMC has a worse Current ratio (0.92) than 61.29% of its industry peers.
- A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
- The Quick ratio of OMC (0.87) is worse than 62.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.01% over the past year.
- OMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
- Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 4.13% in the last year.
- Measured over the past years, OMC shows a small growth in Revenue. The Revenue has been growing by 0.96% on average per year.
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.
- Based on estimates for the next years, OMC will show a quite strong growth in Revenue. The Revenue will grow by 13.31% on average per year.
EPS Next Y5.96%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
EPS Next 5Y5.4%
Revenue Next Year3.62%
Revenue Next 2Y20.47%
Revenue Next 3Y15.61%
Revenue Next 5Y13.31%
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.
- 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
- With a Price/Earnings ratio of 9.17, the valuation of OMC can be described as very reasonable.
- 83.87% of the companies in the same industry are more expensive than OMC, based on the Price/Earnings ratio.
- OMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 7.72, which indicates a rather cheap valuation of OMC.
- Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than the industry average as 78.49% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
- OMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OMC is cheaper than 63.44% of the companies in the same industry.
- 65.59% of the companies in the same industry are more expensive than OMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- OMC has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as OMC's earnings are expected to grow with 12.84% in the coming years.
PEG (NY)1.54
PEG (5Y)1.56
EPS Next 2Y11.28%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
- OMC has a Yearly Dividend Yield of 4.22%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.23, OMC pays a better dividend. On top of this OMC pays more dividend than 88.17% of the companies listed in the same industry.
- OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
- The dividend of OMC has a limited annual growth rate of 1.83%.
- 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)1.83%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
- OMC pays out 41.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
- OMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.26%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
OMNICOM GROUP / OMC FAQ
What is the ChartMill fundamental rating of OMNICOM GROUP (OMC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OMC.
What is the valuation status of OMNICOM GROUP (OMC) stock?
ChartMill assigns a valuation rating of 7 / 10 to OMNICOM GROUP (OMC). This can be considered as Undervalued.
Can you provide the profitability details for OMNICOM GROUP?
OMNICOM GROUP (OMC) has a profitability rating of 8 / 10.
How financially healthy is OMNICOM GROUP?
The financial health rating of OMNICOM GROUP (OMC) is 4 / 10.
What is the earnings growth outlook for OMNICOM GROUP?
The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 5.96% in the next year.