Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


INTERPUBLIC GROUP OF COS INC

New York Stock Exchange, Inc. / Communication Services / Media

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to IPG. IPG was compared to 97 industry peers in the Media industry. While IPG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IPG is valued quite cheap, but it does not seem to be growing. Finally IPG also has an excellent dividend rating. These ratings could make IPG a good candidate for value and dividend investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

IPG had positive earnings in the past year.
In the past year IPG had a positive cash flow from operations.
Each year in the past 5 years IPG has been profitable.
Each year in the past 5 years IPG had a positive operating cash flow.
IPG Yearly Net Income VS EBIT VS OCF VS FCFIPG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

IPG's Return On Assets of 3.76% is fine compared to the rest of the industry. IPG outperforms 79.38% of its industry peers.
IPG has a Return On Equity of 18.16%. This is amongst the best in the industry. IPG outperforms 85.57% of its industry peers.
With an excellent Return On Invested Capital value of 12.25%, IPG belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
IPG had an Average Return On Invested Capital over the past 3 years of 12.24%. This is significantly above the industry average of 7.03%.
The last Return On Invested Capital (12.25%) for IPG is above the 3 year average (12.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.76%
ROE 18.16%
ROIC 12.25%
ROA(3y)4.81%
ROA(5y)4.23%
ROE(3y)23.91%
ROE(5y)22.18%
ROIC(3y)12.24%
ROIC(5y)11.44%
IPG Yearly ROA, ROE, ROICIPG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

IPG has a better Profit Margin (6.45%) than 78.35% of its industry peers.
In the last couple of years the Profit Margin of IPG has remained more or less at the same level.
IPG has a better Operating Margin (13.38%) than 73.20% of its industry peers.
IPG's Operating Margin has improved in the last couple of years.
The Gross Margin of IPG (17.02%) is worse than 76.29% of its industry peers.
In the last couple of years the Gross Margin of IPG has grown nicely.
Industry RankSector Rank
OM 13.38%
PM (TTM) 6.45%
GM 17.02%
OM growth 3Y-1.81%
OM growth 5Y4.07%
PM growth 3Y-11.51%
PM growth 5Y0.1%
GM growth 3Y-2.02%
GM growth 5Y3.12%
IPG Yearly Profit, Operating, Gross MarginsIPG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), IPG is creating some value.
IPG has less shares outstanding than it did 1 year ago.
IPG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, IPG has an improved debt to assets ratio.
IPG Yearly Shares OutstandingIPG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
IPG Yearly Total Debt VS Total AssetsIPG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

IPG has an Altman-Z score of 1.60. This is a bad value and indicates that IPG is not financially healthy and even has some risk of bankruptcy.
IPG's Altman-Z score of 1.60 is fine compared to the rest of the industry. IPG outperforms 64.95% of its industry peers.
The Debt to FCF ratio of IPG is 3.24, which is a good value as it means it would take IPG, 3.24 years of fcf income to pay off all of its debts.
IPG has a better Debt to FCF ratio (3.24) than 81.44% of its industry peers.
IPG has a Debt/Equity ratio of 0.78. This is a neutral value indicating IPG is somewhat dependend on debt financing.
The Debt to Equity ratio of IPG (0.78) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.78
Debt/FCF 3.24
Altman-Z 1.6
ROIC/WACC1.51
WACC8.14%
IPG Yearly LT Debt VS Equity VS FCFIPG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

IPG has a Current Ratio of 1.09. This is a normal value and indicates that IPG is financially healthy and should not expect problems in meeting its short term obligations.
IPG has a worse Current ratio (1.09) than 62.89% of its industry peers.
IPG has a Quick Ratio of 1.09. This is a normal value and indicates that IPG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IPG (1.09) is worse than 61.86% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
IPG Yearly Current Assets VS Current LiabilitesIPG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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3

3. Growth

3.1 Past

IPG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.77%.
The Earnings Per Share has been growing slightly by 7.46% on average over the past years.
The Revenue has decreased by -1.81% in the past year.
Measured over the past years, IPG shows a small growth in Revenue. The Revenue has been growing by 0.90% on average per year.
EPS 1Y (TTM)-1.77%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%-5.93%
Revenue 1Y (TTM)-1.81%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%12.13%

3.2 Future

Based on estimates for the next years, IPG will show a small growth in Earnings Per Share. The EPS will grow by 2.96% on average per year.
IPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.76% yearly.
EPS Next Y-5.2%
EPS Next 2Y1.28%
EPS Next 3Y2.96%
EPS Next 5YN/A
Revenue Next Year-7.51%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.56%
Revenue Next 5Y0.76%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
IPG Yearly Revenue VS EstimatesIPG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
IPG Yearly EPS VS EstimatesIPG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.40, the valuation of IPG can be described as reasonable.
80.41% 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 (28.29), we can say IPG is valued rather cheaply.
IPG is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
IPG's Price/Forward Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 80.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IPG to the average of the S&P500 Index (21.32), we can say IPG is valued rather cheaply.
Industry RankSector Rank
PE 8.4
Fwd PE 8.87
IPG Price Earnings VS Forward Price EarningsIPG 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, IPG is valued a bit cheaper than 75.26% 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 77.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.53
EV/EBITDA 5.72
IPG Per share dataIPG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

The excellent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y1.28%
EPS Next 3Y2.96%

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8

5. Dividend

5.1 Amount

IPG has a Yearly Dividend Yield of 5.51%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 5.05. IPG pays more dividend than 90.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, IPG pays a better dividend.
Industry RankSector Rank
Dividend Yield 5.51%

5.2 History

On average, the dividend of IPG grows each year by 7.02%, which is quite nice.
IPG has paid a dividend for at least 10 years, which is a reliable track record.
IPG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.02%
Div Incr Years12
Div Non Decr Years13
IPG Yearly Dividends per shareIPG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

72.01% of the earnings are spent on dividend by IPG. This is not a sustainable payout ratio.
The dividend of IPG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP72.01%
EPS Next 2Y1.28%
EPS Next 3Y2.96%
IPG Yearly Income VS Free CF VS DividendIPG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
IPG Dividend Payout.IPG Dividend Payout, showing the Payout Ratio.IPG Dividend Payout.PayoutRetained Earnings

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