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 92 industry peers in the Media industry. While OMC has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OMC. OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year OMC was profitable.
- 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 80.43% of its industry peers.
- With an excellent Return On Equity value of 28.93%, OMC belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
- OMC has a Return On Invested Capital of 14.29%. This is amongst the best in the industry. OMC outperforms 95.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for OMC is significantly above the industry average of 7.07%.
- 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 80.43% 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 has a better Operating Margin (15.00%) than 82.61% 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 68.48% 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-0.15%
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.
- Compared to 1 year ago, OMC has less shares outstanding
- The number of shares outstanding for OMC has been reduced compared to 5 years ago.
- The debt/assets ratio for OMC is higher compared to a year ago.
2.2 Solvency
- OMC has an Altman-Z score of 1.96. 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.
- OMC has a Altman-Z score of 1.96. This is in the better half of the industry: OMC outperforms 70.65% of its industry peers.
- 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 79.35% 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.
- With a Debt to Equity ratio value of 1.06, OMC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.9
WACC7.54%
2.3 Liquidity
- A Current Ratio of 0.92 indicates that OMC may have some problems paying its short term obligations.
- With a Current ratio value of 0.92, OMC is not doing good in the industry: 61.96% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.87, OMC is doing worse than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| 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 7.01%.
- 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.
- The Revenue has been growing slightly by 4.13% in the past 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
- OMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
- OMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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 9.17, 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 83.70% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of OMC to the average of the S&P500 Index (28.30), we can say OMC is valued rather cheaply.
- OMC is valuated cheaply with a Price/Forward Earnings ratio of 7.72.
- OMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMC is cheaper than 78.26% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. OMC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 63.04% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of OMC may justify a higher PE ratio.
- OMC's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)1.56
EPS Next 2Y11.28%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.04%, OMC is a good candidate for dividend investing.
- OMC's Dividend Yield is rather good when compared to the industry average which is at 1.22. OMC pays more dividend than 88.04% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
- The dividend of OMC has a limited annual growth rate of 1.83%.
- OMC has been paying a dividend for at least 10 years, so it has 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.