OMNICOM GROUP (OMC) Fundamental Analysis & Valuation
NYSE:OMC • US6819191064
84.93 USD
+0.16 (+0.19%)
At close: Mar 6, 2026
84.93 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
This OMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
OMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Media industry. OMC scores excellent on profitability, but there are some minor concerns on its financial health. OMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
- OMC had positive earnings in 4 of the past 5 years.
- OMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of OMC (4.63%) is better than 85.71% of its industry peers.
- OMC has a better Return On Equity (28.93%) than 96.70% of its industry peers.
- OMC has a Return On Invested Capital of 15.33%. This is amongst the best in the industry. OMC outperforms 97.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROIC | 15.33% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 8.31%, OMC belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- OMC has a Operating Margin of 15.00%. This is amongst the best in the industry. OMC outperforms 82.42% of its industry peers.
- In the last couple of years the Operating Margin of OMC has grown nicely.
- OMC has a Gross Margin of 26.90%. This is in the lower half of the industry: OMC underperforms 67.03% of its industry peers.
- OMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% |
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%
2. OMC Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OMC is creating value.
- OMC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for OMC has been increased compared to 5 years ago.
- OMC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.02 indicates that OMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of OMC (2.02) is better than 68.13% of its industry peers.
- The Debt to FCF ratio of OMC is 3.78, which is a good value as it means it would take OMC, 3.78 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 3.78, OMC belongs to the best of the industry, outperforming 80.22% 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 of 1.06. This is comparable to the rest of the industry: OMC outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.02 |
ROIC/WACC2.03
WACC7.56%
2.3 Liquidity
- A Current Ratio of 0.92 indicates that OMC may have some problems paying its short term obligations.
- OMC has a worse Current ratio (0.92) than 64.84% of its industry peers.
- OMC has a Quick 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's Quick ratio of 0.87 is on the low side compared to the rest of the industry. OMC is outperformed by 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. OMC Growth Analysis
3.1 Past
- OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
- OMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.41% yearly.
- The Revenue has grown by 10.09% in the past year. This is quite good.
- Measured over the past years, OMC shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.82% yearly.
- Based on estimates for the next years, OMC will show a quite strong growth in Revenue. The Revenue will grow by 13.29% on average per year.
EPS Next Y16.65%
EPS Next 2Y17.37%
EPS Next 3Y9.65%
EPS Next 5Y5.82%
Revenue Next Year63.06%
Revenue Next 2Y29.97%
Revenue Next 3Y3.01%
Revenue Next 5Y13.3%
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 decreasing.
- 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. OMC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.90, the valuation of OMC can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 82.42% of the companies listed in the same industry.
- OMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.29.
- A Price/Forward Earnings ratio of 8.49 indicates a reasonable valuation of OMC.
- Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.49 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as OMC.
- Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of OMC may justify a higher PE ratio.
PEG (NY)0.59
PEG (5Y)0.95
EPS Next 2Y17.37%
EPS Next 3Y9.65%
5. OMC Dividend Analysis
5.1 Amount
- OMC has a Yearly Dividend Yield of 3.77%.
- OMC's Dividend Yield is rather good when compared to the industry average which is at 1.07. OMC pays more dividend than 87.91% of the companies in the same industry.
- OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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 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.
DP41.26%
EPS Next 2Y17.37%
EPS Next 3Y9.65%
OMC Fundamentals: All Metrics, Ratios and Statistics
84.93
+0.16 (+0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-13 2026-04-13/amc
Inst Owners102.71%
Inst Owner Change38.21%
Ins Owners0.79%
Ins Owner Change5.87%
Market Cap26.36B
Revenue(TTM)17.27B
Net Income(TTM)1.33B
Analysts74.12
Price Target100.75 (18.63%)
Short Float %8.42%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP41.26%
Div Incr Years0
Div Non Decr Years34
Ex-Date03-11 2026-03-11 (0.8)
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)-0.93%
PT rev (3m)-1.2%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.27%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)11.78%
Revenue NQ rev (3m)11.63%
Revenue NY rev (1m)16.4%
Revenue NY rev (3m)57.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.49 | ||
| P/S | 1.66 | ||
| P/FCF | 16.02 | ||
| P/OCF | 14.63 | ||
| P/B | 5.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)8.58
EY10.1%
EPS(NY)10.01
Fwd EY11.78%
FCF(TTM)5.3
FCFY6.24%
OCF(TTM)5.8
OCFY6.83%
SpS51.07
BVpS14.66
TBVpS-21.59
PEG (NY)0.59
PEG (5Y)0.95
Graham Number53.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROCE | 19.44% | ||
| ROIC | 15.33% | ||
| ROICexc | 21.12% | ||
| ROICexgc | N/A | ||
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% | ||
| FCFM | 10.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-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 | 2.02 |
F-Score6
WACC7.56%
ROIC/WACC2.03
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 Y16.65%
EPS Next 2Y17.37%
EPS Next 3Y9.65%
EPS Next 5Y5.82%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year63.06%
Revenue Next 2Y29.97%
Revenue Next 3Y3.01%
Revenue Next 5Y13.3%
EBIT growth 1Y4.4%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year117.64%
EBIT Next 3Y37.11%
EBIT Next 5Y14.32%
FCF growth 1Y11.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.44%
OCF growth 3YN/A
OCF growth 5YN/A
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 6 / 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 16.65% in the next year.