INTERPUBLIC GROUP OF COS INC (IPG) Stock Fundamental Analysis
NYSE:IPG - New York Stock Exchange, Inc. - US4606901001 - Common Stock - Currency: USD
IPG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Media industry. IPG has an excellent profitability rating, but there are some minor concerns on its financial health. IPG is valued correctly, but it does not seem to be growing. IPG also has an excellent dividend rating. This makes IPG very considerable for dividend investing!
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.
1.2 Ratios
IPG has a better Return On Assets (4.73%) than 79.31% of its industry peers.
IPG has a better Return On Equity (21.69%) than 90.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.18%, IPG belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is significantly above the industry average of 6.90%.
The 3 year average ROIC (12.64%) for IPG is below the current ROIC(13.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 21.69% | ||
| ROIC | 13.18% |
ROA(3y)5.16%
ROA(5y)4.22%
ROE(3y)26.87%
ROE(5y)23.27%
ROIC(3y)12.64%
ROIC(5y)11.46%
1.3 Margins
IPG has a better Profit Margin (7.44%) than 74.71% of its industry peers.
In the last couple of years the Profit Margin of IPG has grown nicely.
With a decent Operating Margin value of 13.60%, IPG is doing good in the industry, outperforming 75.86% of the companies in the same industry.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG has a worse Gross Margin (17.01%) than 81.61% of its industry peers.
IPG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.6% | ||
| PM (TTM) | 7.44% | ||
| GM | 17.01% |
OM growth 3Y7.18%
OM growth 5Y5.56%
PM growth 3Y37.58%
PM growth 5Y9.62%
GM growth 3Y3.74%
GM growth 5Y3.27%
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.
The number of shares outstanding for IPG has been reduced compared to 1 year ago.
IPG has less shares outstanding than it did 5 years ago.
IPG has a worse debt/assets ratio than last year.
2.2 Solvency
IPG has an Altman-Z score of 1.81. This is not the best score and indicates that IPG is in the grey zone with still only limited risk for bankruptcy at the moment.
IPG has a Altman-Z score of 1.81. This is in the better half of the industry: IPG outperforms 70.11% of its industry peers.
The Debt to FCF ratio of IPG is 3.19, which is a good value as it means it would take IPG, 3.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, IPG belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
IPG has a Debt/Equity ratio of 0.79. This is a neutral value indicating IPG is somewhat dependend on debt financing.
The Debt to Equity ratio of IPG (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.81 |
ROIC/WACC1.57
WACC8.38%
2.3 Liquidity
A Current Ratio of 1.09 indicates that IPG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, IPG is doing worse than 68.97% of the companies in the same industry.
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.
IPG has a worse Quick ratio (1.09) than 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.74% over the past year.
IPG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.11% yearly.
The Revenue has been growing slightly by 0.06% in the past year.
IPG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.31% yearly.
EPS 1Y (TTM)6.74%
EPS 3Y17.83%
EPS 5Y9.11%
EPS Q2Q%0%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y6.32%
Revenue growth 5Y2.31%
Sales Q2Q%-2.87%
3.2 Future
The Earnings Per Share is expected to grow by 3.30% on average over the next years.
Based on estimates for the next years, IPG will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y0.88%
EPS Next 2Y-0.82%
EPS Next 3Y1.37%
EPS Next 5Y3.3%
Revenue Next Year-1.13%
Revenue Next 2Y-1.43%
Revenue Next 3Y0.01%
Revenue Next 5Y1.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
IPG is valuated reasonably with a Price/Earnings ratio of 10.12.
IPG's Price/Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 80.46% of the companies in the same industry.
When comparing the Price/Earnings ratio of IPG to the average of the S&P500 Index (28.42), we can say IPG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.36, the valuation of IPG can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 75.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.39. IPG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
73.56% of the companies in the same industry are more expensive than IPG, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 71.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)11.54
PEG (5Y)1.11
EPS Next 2Y-0.82%
EPS Next 3Y1.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.67%, IPG is a good candidate for dividend investing.
IPG's Dividend Yield is rather good when compared to the industry average which is at 4.43. IPG pays more dividend than 88.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
5.2 History
On average, the dividend of IPG grows each year by 8.30%, 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)8.3%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
IPG pays out 60.83% of its income as dividend. This is not a sustainable payout ratio.
IPG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.83%
EPS Next 2Y-0.82%
EPS Next 3Y1.37%
INTERPUBLIC GROUP OF COS INC
NYSE:IPG (1/28/2025, 8:04:00 PM)
After market: 28.85 0 (0%)28.85
-0.43 (-1.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners107.7%
Inst Owner Change1.61%
Ins Owners0.38%
Ins Owner Change0%
Market Cap10.75B
Analysts68.75
Price Target33.45 (15.94%)
Short Float %6.59%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.67% |
Yearly Dividend1.25
Dividend Growth(5Y)8.3%
DP60.83%
Div Incr Years12
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.35%
Min EPS beat(2)-1.26%
Max EPS beat(2)1.96%
EPS beat(4)3
Avg EPS beat(4)1.39%
Min EPS beat(4)-1.26%
Max EPS beat(4)3.43%
EPS beat(8)4
Avg EPS beat(8)0.58%
EPS beat(12)8
Avg EPS beat(12)2.82%
EPS beat(16)12
Avg EPS beat(16)20.46%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)-0.26%
Revenue beat(8)1
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)5.32%
Revenue beat(16)9
Avg Revenue beat(16)7.81%
PT rev (1m)3.63%
PT rev (3m)1.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-1.61%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.99 | ||
| P/FCF | 11.65 | ||
| P/OCF | 9.93 | ||
| P/B | 2.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)2.85
EY9.88%
EPS(NY)2.78
Fwd EY9.65%
FCF(TTM)2.48
FCFY8.58%
OCF(TTM)2.9
OCFY10.07%
SpS29.15
BVpS10
TBVpS-4.55
PEG (NY)11.54
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 21.69% | ||
| ROCE | 17.13% | ||
| ROIC | 13.18% | ||
| ROICexc | 16.02% | ||
| ROICexgc | 67.45% | ||
| OM | 13.6% | ||
| PM (TTM) | 7.44% | ||
| GM | 17.01% | ||
| FCFM | 8.5% |
ROA(3y)5.16%
ROA(5y)4.22%
ROE(3y)26.87%
ROE(5y)23.27%
ROIC(3y)12.64%
ROIC(5y)11.46%
ROICexc(3y)18.2%
ROICexc(5y)15.9%
ROICexgc(3y)1057.76%
ROICexgc(5y)775.85%
ROCE(3y)16.46%
ROCE(5y)14.93%
ROICexcg growth 3Y-38.24%
ROICexcg growth 5Y12.35%
ROICexc growth 3Y10.48%
ROICexc growth 5Y9.01%
OM growth 3Y7.18%
OM growth 5Y5.56%
PM growth 3Y37.58%
PM growth 5Y9.62%
GM growth 3Y3.74%
GM growth 5Y3.27%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 61.12% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.28% | ||
| Profit Quality | 114.14% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.81 |
F-Score7
WACC8.38%
ROIC/WACC1.57
Cap/Depr(3y)67.22%
Cap/Depr(5y)66.11%
Cap/Sales(3y)1.73%
Cap/Sales(5y)1.79%
Profit Quality(3y)92.47%
Profit Quality(5y)191.76%
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y17.83%
EPS 5Y9.11%
EPS Q2Q%0%
EPS Next Y0.88%
EPS Next 2Y-0.82%
EPS Next 3Y1.37%
EPS Next 5Y3.3%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y6.32%
Revenue growth 5Y2.31%
Sales Q2Q%-2.87%
Revenue Next Year-1.13%
Revenue Next 2Y-1.43%
Revenue Next 3Y0.01%
Revenue Next 5Y1.31%
EBIT growth 1Y3.87%
EBIT growth 3Y13.95%
EBIT growth 5Y8%
EBIT Next Year14.42%
EBIT Next 3Y4.45%
EBIT Next 5Y4.53%
FCF growth 1Y49.32%
FCF growth 3Y-39.31%
FCF growth 5Y-0.66%
OCF growth 1Y33.87%
OCF growth 3Y-33.03%
OCF growth 5Y-0.37%