OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

76.01 USD
+0.27 (+0.36%)
At close:
76.01 USD
0 (0%)
After Hours:

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

6

1. OMC Profitability Analysis

1.1 Basic Checks

  • In the past year OMC was profitable.
  • OMC had a positive operating cash flow in the past year.
  • Of the past 5 years OMC 4 years were profitable.
  • In the past 5 years OMC always reported a positive cash flow from operatings.
OMC Yearly Net Income VS EBIT VS OCF VS FCFOMC 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 2025 0 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -0.10%, OMC is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
  • With a decent Return On Equity value of -0.45%, OMC is doing good in the industry, outperforming 70.33% of the companies in the same industry.
  • OMC has a better Return On Invested Capital (8.19%) than 86.81% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for OMC is above the industry average of 7.76%.
  • The last Return On Invested Capital (8.19%) for OMC is well below the 3 year average (12.34%), which needs to be investigated, but indicates that OMC had better years and this may not be a problem.
Industry RankSector Rank
ROA -0.1%
ROE -0.45%
ROIC 8.19%
ROA(3y)3.29%
ROA(5y)3.94%
ROE(3y)24.44%
ROE(5y)31.37%
ROIC(3y)12.34%
ROIC(5y)13.08%
OMC Yearly ROA, ROE, ROICOMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

1.3 Margins

  • OMC's Operating Margin of 14.97% is amongst the best of the industry. OMC outperforms 82.42% of its industry peers.
  • OMC's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 26.79%, OMC is doing worse than 63.74% of the companies in the same industry.
  • OMC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.97%
PM (TTM) N/A
GM 26.79%
OM growth 3Y-0.88%
OM growth 5Y2.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y0.21%
OMC Yearly Profit, Operating, Gross MarginsOMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

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3

2. OMC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OMC is still creating some value.
  • Compared to 1 year ago, OMC has more shares outstanding
  • OMC has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for OMC has been reduced compared to a year ago.
OMC Yearly Shares OutstandingOMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
OMC Yearly Total Debt VS Total AssetsOMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • OMC has an Altman-Z score of 1.01. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of OMC (1.01) is comparable to the rest of the industry.
  • The Debt to FCF ratio of OMC is 3.27, which is a good value as it means it would take OMC, 3.27 years of fcf income to pay off all of its debts.
  • OMC has a Debt to FCF ratio of 3.27. This is amongst the best in the industry. OMC outperforms 81.32% of its industry peers.
  • A Debt/Equity ratio of 0.64 indicates that OMC is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.64, OMC is in line with its industry, outperforming 50.55% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.01
ROIC/WACC1.06
WACC7.72%
OMC Yearly LT Debt VS Equity VS FCFOMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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.
  • OMC has a Current ratio of 0.93. This is in the lower half of the industry: OMC underperforms 64.84% of its industry peers.
  • A Quick Ratio of 0.86 indicates that OMC may have some problems paying its short term obligations.
  • OMC has a worse Quick ratio (0.86) than 63.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.86
OMC Yearly Current Assets VS Current LiabilitesOMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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6

3. OMC Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.45% over the past year.
  • Measured over the past years, OMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.41% on average per year.
  • The Revenue has grown by 10.09% in the past year. This is quite good.
  • OMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y7.38%
EPS 5Y10.41%
EPS Q2Q%7.47%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%

3.2 Future

  • OMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.25% yearly.
  • OMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.82% yearly.
EPS Next Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
Revenue Next 5Y12.82%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
OMC Yearly Revenue VS EstimatesOMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
OMC Yearly EPS VS EstimatesOMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15

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9

4. OMC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.86, which indicates a very decent valuation of OMC.
  • Based on the Price/Earnings ratio, OMC is valued cheaper than 85.71% of the companies in the same industry.
  • OMC is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
  • OMC is valuated cheaply with a Price/Forward Earnings ratio of 6.93.
  • Based on the Price/Forward Earnings ratio, OMC is valued cheaper than 84.62% of the companies in the same industry.
  • OMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.86
Fwd PE 6.93
OMC Price Earnings VS Forward Price EarningsOMC 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, OMC is valued a bit cheaper than the industry average as 73.63% of the companies are valued more expensively.
  • 82.42% of the companies in the same industry are more expensive than OMC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.77
EV/EBITDA 8.33
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

4.3 Compensation for Growth

  • OMC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • OMC has a very decent profitability rating, which may justify a higher PE ratio.
  • OMC's earnings are expected to grow with 18.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.85
EPS Next 2Y21.09%
EPS Next 3Y18.74%

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6

5. OMC Dividend Analysis

5.1 Amount

  • OMC has a Yearly Dividend Yield of 4.17%, which is a nice return.
  • Compared to an average industry Dividend Yield of 1.07, OMC pays a better dividend. On top of this OMC pays more dividend than 91.21% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, OMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.17%

5.2 History

  • The dividend of OMC decreases each year by -3.70%.
  • OMC has paid a dividend for at least 10 years, which is a reliable track record.
  • OMC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.7%
Div Incr Years1
Div Non Decr Years34
OMC Yearly Dividends per shareOMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • The earnings of OMC are negative and hence is the payout ratio. OMC will probably not be able to sustain this dividend level.
DP-1008.44%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
OMC Yearly Income VS Free CF VS DividendOMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

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OMC Fundamentals: All Metrics, Ratios and Statistics

OMNICOM GROUP

NYSE:OMC (4/27/2026, 8:09:56 PM)

After market: 76.01 0 (0%)

76.01

+0.27 (+0.36%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners111.89%
Inst Owner Change0.1%
Ins Owners0.86%
Ins Owner Change12.48%
Market Cap21.66B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target100.82 (32.64%)
Short Float %10.58%
Short Ratio5.72
Dividend
Industry RankSector Rank
Dividend Yield 4.17%
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP-1008.44%
Div Incr Years1
Div Non Decr Years34
Ex-Date03-11
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-1.8%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.61%
Min EPS beat(4)-1.8%
Max EPS beat(4)3.99%
EPS beat(8)6
Avg EPS beat(8)1.69%
EPS beat(12)8
Avg EPS beat(12)2.11%
EPS beat(16)12
Avg EPS beat(16)2.81%
Revenue beat(2)1
Avg Revenue beat(2)3.99%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)8.66%
Revenue beat(4)2
Avg Revenue beat(4)1.67%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)8.66%
Revenue beat(8)3
Avg Revenue beat(8)0.83%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.87%
PT rev (1m)0.07%
PT rev (3m)-0.87%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)4.16%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)9.93%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)16.54%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)10.34%
Valuation
Industry RankSector Rank
PE 8.86
Fwd PE 6.93
P/S 1.25
P/FCF 7.77
P/OCF 7.37
P/B 1.8
P/tB N/A
EV/EBITDA 8.33
EPS(TTM)8.58
EY11.29%
EPS(NY)10.97
Fwd EY14.44%
FCF(TTM)9.78
FCFY12.87%
OCF(TTM)10.31
OCFY13.56%
SpS60.61
BVpS42.27
TBVpS-41.04
PEG (NY)0.32
PEG (5Y)0.85
Graham Number90.3312 (18.84%)
Profitability
Industry RankSector Rank
ROA -0.1%
ROE -0.45%
ROCE 10.4%
ROIC 8.19%
ROICexc 11.31%
ROICexgc N/A
OM 14.97%
PM (TTM) N/A
GM 26.79%
FCFM 16.14%
ROA(3y)3.29%
ROA(5y)3.94%
ROE(3y)24.44%
ROE(5y)31.37%
ROIC(3y)12.34%
ROIC(5y)13.08%
ROICexc(3y)18.6%
ROICexc(5y)20.64%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.64%
ROCE(5y)16.58%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-20.79%
ROICexc growth 5Y-11.99%
OM growth 3Y-0.88%
OM growth 5Y2.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y0.21%
F-Score4
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Debt/EBITDA 2.7
Cap/Depr 54.14%
Cap/Sales 0.87%
Interest Coverage 14.72
Cash Conversion 102.63%
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.86
Altman-Z 1.01
F-Score4
WACC7.72%
ROIC/WACC1.06
Cap/Depr(3y)49.82%
Cap/Depr(5y)99.8%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.45%
EPS 3Y7.38%
EPS 5Y10.41%
EPS Q2Q%7.47%
EPS Next Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
Revenue Next 5Y12.82%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year118.85%
EBIT Next 3Y35.82%
EBIT Next 5Y14.32%
FCF growth 1Y75.05%
FCF growth 3Y48.69%
FCF growth 5Y11.08%
OCF growth 1Y69.5%
OCF growth 3Y46.92%
OCF growth 5Y11.24%

OMNICOM GROUP / OMC Fundamental Analysis 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 9 / 10 to OMNICOM GROUP (OMC). This can be considered as Undervalued.


What is the profitability of OMC stock?

OMNICOM GROUP (OMC) has a profitability rating of 6 / 10.


Can you provide the financial health for OMC stock?

The financial health rating of OMNICOM GROUP (OMC) is 3 / 10.


What is the expected EPS growth for OMNICOM GROUP (OMC) stock?

The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 27.89% in the next year.