Despite its impressive fundamentals, NYSE:IPG remains undervalued.

Last update: Nov 15, 2024

Uncover the hidden value in INTERPUBLIC GROUP OF COS INC (NYSE:IPG) as our stock screening tool recommends it as an undervalued choice. NYSE:IPG maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Deciphering NYSE:IPG's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:IPG was assigned a score of 7 for valuation:

IPG is valuated reasonably with a Price/Earnings ratio of 10.25.
81.32% of the companies in the same industry are more expensive than IPG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of IPG to the average of the S&P500 Index (28.81), we can say IPG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.50, the valuation of IPG can be described as reasonable.
82.42% of the companies in the same industry are more expensive than IPG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.56. IPG is valued rather cheaply when compared to this.
IPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IPG is cheaper than 76.92% of the companies in the same industry.
IPG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. IPG is cheaper than 70.33% of the companies in the same industry.
IPG has an outstanding profitability rating, which may justify a higher PE ratio.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:IPG scores a 8 out of 10:

With a decent Return On Assets value of 4.73%, IPG is doing good in the industry, outperforming 78.02% of the companies in the same industry.
IPG's Return On Equity of 21.69% is amongst the best of the industry. IPG outperforms 90.11% of its industry peers.
IPG's Return On Invested Capital of 13.18% is amongst the best of the industry. IPG outperforms 94.51% of its industry peers.
IPG had an Average Return On Invested Capital over the past 3 years of 12.64%. This is significantly above the industry average of 7.53%.
The 3 year average ROIC (12.64%) for IPG is below the current ROIC(13.18%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 7.44%, IPG is in the better half of the industry, outperforming 73.63% of the companies in the same industry.
In the last couple of years the Profit Margin of IPG has grown nicely.
IPG has a better Operating Margin (13.60%) than 73.63% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
In the last couple of years the Gross Margin of IPG has grown nicely.

Understanding NYSE:IPG's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:IPG, the assigned 5 for health provides valuable insights:

With a decent Altman-Z score value of 1.81, IPG is doing good in the industry, outperforming 64.84% of the companies in the same industry.
IPG has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as IPG would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of IPG (3.19) is better than 84.62% of its industry peers.

Understanding NYSE:IPG's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:IPG scores a 4 out of 10:

IPG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.11% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of IPG contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.