INTERPUBLIC GROUP OF COS INC (IPG)
US4606901001 - Common Stock
We assign a fundamental rating of 6 out of 10 to IPG. IPG was compared to 92 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 has a valuation in line with the averages, 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
In the past year IPG was profitable.
In the past year IPG had a positive cash flow from operations.
In the past 5 years IPG has always been profitable.
Each year in the past 5 years IPG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.73%, IPG is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
The Return On Equity of IPG (21.69%) is better than 90.11% of its industry peers.
The Return On Invested Capital of IPG (13.18%) is better than 94.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IPG is significantly above the industry average of 6.95%.
The last Return On Invested Capital (13.18%) for IPG is above the 3 year average (12.64%), which is a sign of increasing profitability.
| 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's Profit Margin of 7.44% is fine compared to the rest of the industry. IPG outperforms 74.73% of its industry peers.
IPG's Profit Margin has improved in the last couple of years.
IPG's Operating Margin of 13.60% is fine compared to the rest of the industry. IPG outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
With a Gross Margin value of 17.01%, IPG is not doing good in the industry: 80.22% of the companies in the same industry are doing better.
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
IPG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, IPG has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that IPG is in the distress zone and has some risk of bankruptcy.
IPG's Altman-Z score of 1.80 is fine compared to the rest of the industry. IPG outperforms 70.33% 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.
IPG has a better Debt to FCF ratio (3.19) than 85.71% of its industry peers.
IPG has a Debt/Equity ratio of 0.79. This is a neutral value indicating IPG is somewhat dependend on debt financing.
IPG's Debt to Equity ratio of 0.79 is in line compared to the rest of the industry. IPG outperforms 47.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.57
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.09 indicates that IPG should not have too much problems paying its short term obligations.
IPG has a Current ratio of 1.09. This is in the lower half of the industry: IPG underperforms 69.23% 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.
Looking at the Quick ratio, with a value of 1.09, IPG is doing worse than 68.13% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 9.11% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.06% in the past year.
The Revenue has been growing slightly by 2.31% on average over the past years.
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.
IPG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.31% yearly.
EPS Next Y1.08%
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
EPS Next 5Y3.3%
Revenue Next Year-1.01%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.24%
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
Based on the Price/Earnings ratio of 10.20, the valuation of IPG can be described as reasonable.
IPG's Price/Earnings ratio is a bit cheaper when compared to the industry. IPG is cheaper than 78.02% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. IPG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.45, the valuation of IPG can be described as reasonable.
Based on the Price/Forward Earnings ratio, IPG is valued a bit cheaper than 79.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, IPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 10.45 |
4.2 Price Multiples
IPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IPG is cheaper than 72.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IPG is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IPG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of IPG may justify a higher PE ratio.
PEG (NY)9.46
PEG (5Y)1.12
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.61%, IPG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.38, IPG pays a better dividend. On top of this IPG pays more dividend than 90.11% of the companies listed in the same industry.
IPG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
The dividend of IPG is nicely growing with an annual growth rate of 8.30%!
IPG has paid a dividend for at least 10 years, which is a reliable track record.
IPG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.3%
Div Incr Years12
Div Non Decr Years13
5.3 Sustainability
60.83% of the earnings are spent on dividend by IPG. 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-0.86%
EPS Next 3Y1.29%
INTERPUBLIC GROUP OF COS INC
NYSE:IPG (12/20/2024, 8:18:46 PM)
After market: 29.07 0 (0%)29.07
+0.44 (+1.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners107.7%
Inst Owner Change-1.95%
Ins Owners0.38%
Ins Owner Change0.26%
Market Cap10.83B
Analysts57.14
Price Target32.28 (11.04%)
Short Float %7.84%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Dividend Growth(5Y)8.3%
DP60.83%
Div Incr Years12
Div Non Decr Years13
Ex-Date
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)-2.23%
PT rev (3m)-4.77%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-2.81%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 10.45 | ||
| P/S | 1 | ||
| P/FCF | 11.74 | ||
| P/OCF | 10.01 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)2.85
EY9.8%
EPS(NY)2.78
Fwd EY9.57%
FCF(TTM)2.48
FCFY8.52%
OCF(TTM)2.9
OCFY9.99%
SpS29.15
BVpS10
TBVpS-4.55
PEG (NY)9.46
PEG (5Y)1.12
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 | 1.8 |
F-Score7
WACC8.41%
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 Y1.08%
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
EPS Next 5Y3.3%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y6.32%
Revenue growth 5Y2.31%
Sales Q2Q%-2.87%
Revenue Next Year-1.01%
Revenue Next 2Y-1.16%
Revenue Next 3Y0.24%
Revenue Next 5Y1.31%
EBIT growth 1Y3.87%
EBIT growth 3Y13.95%
EBIT growth 5Y8%
EBIT Next Year14.61%
EBIT Next 3Y4.71%
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%