OMNICOM GROUP (OMC) Stock Fundamental Analysis
NYSE:OMC - New York Stock Exchange, Inc. - US6819191064 - Common Stock - Currency: USD
Taking everything into account, OMC scores 5 out of 10 in our fundamental rating. OMC was compared to 97 industry peers in the Media industry. OMC has an excellent profitability rating, but there are 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.
OMC had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 5.16%, OMC belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
OMC's Return On Equity of 33.15% is amongst the best of the industry. OMC outperforms 94.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.76%, OMC belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
OMC had an Average Return On Invested Capital over the past 3 years of 13.47%. This is significantly above the industry average of 7.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 33.15% | ||
| ROIC | 12.76% |
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
With an excellent Profit Margin value of 9.21%, OMC belongs to the best of the industry, outperforming 81.44% of the companies in the same industry.
OMC's Profit Margin has been stable in the last couple of years.
OMC's Operating Margin of 14.95% is fine compared to the rest of the industry. OMC outperforms 77.32% of its industry peers.
OMC's Operating Margin has been stable in the last couple of years.
OMC has a Gross Margin of 27.07%. This is in the lower half of the industry: OMC underperforms 70.10% 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 | 14.95% | ||
| PM (TTM) | 9.21% | ||
| GM | 27.07% |
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), OMC is creating value.
OMC has less shares outstanding than it did 1 year ago.
OMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OMC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that OMC is in the distress zone and has some risk of bankruptcy.
OMC's Altman-Z score of 1.77 is fine compared to the rest of the industry. OMC outperforms 63.92% of its industry peers.
The Debt to FCF ratio of OMC is 4.33, which is a neutral value as it means it would take OMC, 4.33 years of fcf income to pay off all of its debts.
OMC's Debt to FCF ratio of 4.33 is fine compared to the rest of the industry. OMC outperforms 77.32% of its industry peers.
OMC has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.40, OMC is not doing good in the industry: 64.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.84
WACC6.94%
2.3 Liquidity
OMC has a Current Ratio of 1.01. This is a normal value and indicates that OMC is financially healthy and should not expect problems in meeting its short term obligations.
OMC has a worse Current ratio (1.01) than 67.01% of its industry peers.
A Quick Ratio of 0.94 indicates that OMC may have some problems paying its short term obligations.
OMC has a worse Quick ratio (0.94) than 70.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.29% over the past year.
Measured over the past 5 years, OMC shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 5.84% 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)7.29%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%1.8%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%1.65%
3.2 Future
The Earnings Per Share is expected to grow by 4.91% on average over the next years.
OMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y4.72%
EPS Next 2Y5.29%
EPS Next 3Y5.94%
EPS Next 5Y4.91%
Revenue Next Year2.39%
Revenue Next 2Y2.75%
Revenue Next 3Y3.14%
Revenue Next 5Y2.27%
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
Based on the Price/Earnings ratio of 8.63, the valuation of OMC can be described as reasonable.
Based on the Price/Earnings ratio, OMC is valued cheaper than 81.44% of the companies in the same industry.
OMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
OMC is valuated cheaply with a Price/Forward Earnings ratio of 7.81.
Based on the Price/Forward Earnings ratio, OMC is valued cheaper than 80.41% of the companies in the same industry.
OMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OMC is cheaper than 75.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 82.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OMC does not grow enough to justify the current Price/Earnings ratio.
OMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.47
EPS Next 2Y5.29%
EPS Next 3Y5.94%
5. Dividend
5.1 Amount
OMC has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
OMC's Dividend Yield is rather good when compared to the industry average which is at 4.97. OMC pays more dividend than 84.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 38.05% 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.
DP38.05%
EPS Next 2Y5.29%
EPS Next 3Y5.94%
NYSE:OMC (6/17/2025, 11:32:06 AM)
69.8
-0.86 (-1.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners107.7%
Inst Owner Change3.66%
Ins Owners1.16%
Ins Owner Change7.22%
Market Cap13.62B
Analysts75
Price Target100.77 (44.37%)
Short Float %13.49%
Short Ratio8.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend2.8
Dividend Growth(5Y)1.83%
DP38.05%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.43%
Min EPS beat(2)0.87%
Max EPS beat(2)3.99%
EPS beat(4)3
Avg EPS beat(4)1.16%
Min EPS beat(4)-0.42%
Max EPS beat(4)3.99%
EPS beat(8)5
Avg EPS beat(8)1.42%
EPS beat(12)9
Avg EPS beat(12)3.1%
EPS beat(16)13
Avg EPS beat(16)4.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.67%
Max Revenue beat(2)-0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)1.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)9
Avg Revenue beat(16)0.79%
PT rev (1m)0%
PT rev (3m)-8.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.86 | ||
| P/FCF | 9.6 | ||
| P/OCF | 8.7 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.37 |
EPS(TTM)8.09
EY11.59%
EPS(NY)8.93
Fwd EY12.8%
FCF(TTM)7.27
FCFY10.41%
OCF(TTM)8.02
OCFY11.49%
SpS80.72
BVpS22.41
TBVpS-35.47
PEG (NY)1.83
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 33.15% | ||
| ROCE | 17.35% | ||
| ROIC | 12.76% | ||
| ROICexc | 16.99% | ||
| ROICexgc | N/A | ||
| OM | 14.95% | ||
| PM (TTM) | 9.21% | ||
| GM | 27.07% | ||
| FCFM | 9.01% |
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%
ROICexcg growth 3YN/A
ROICexcg 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 | 1.4 | ||
| Debt/FCF | 4.33 | ||
| Debt/EBITDA | 2.36 | ||
| Cap/Depr | 60.97% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 12.97 | ||
| Cash Conversion | 60.3% | ||
| Profit Quality | 97.83% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.77 |
F-Score6
WACC6.94%
ROIC/WACC1.84
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)7.29%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%1.8%
EPS Next Y4.72%
EPS Next 2Y5.29%
EPS Next 3Y5.94%
EPS Next 5Y4.91%
Revenue 1Y (TTM)5.84%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%1.65%
Revenue Next Year2.39%
Revenue Next 2Y2.75%
Revenue Next 3Y3.14%
Revenue Next 5Y2.27%
EBIT growth 1Y4.87%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year12.67%
EBIT Next 3Y6.96%
EBIT Next 5Y6.32%
FCF growth 1Y62.86%
FCF growth 3Y7.57%
FCF growth 5Y-1.91%
OCF growth 1Y64.95%
OCF growth 3Y-3.77%
OCF growth 5Y-1.36%