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 97 industry peers in the Media industry. IPG has an excellent profitability rating, but there are some minor concerns on its financial health. IPG has a bad growth rate and is valued cheaply. IPG also has an excellent dividend rating. With these ratings, IPG could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year IPG was profitable.
IPG had a positive operating cash flow in the past year.
In the past 5 years IPG has always been profitable.
In the past 5 years IPG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.76%, IPG is doing good in the industry, outperforming 79.38% of the companies in the same industry.
The Return On Equity of IPG (18.16%) is better than 85.57% of its industry peers.
IPG has a Return On Invested Capital of 12.25%. This is amongst the best in the industry. IPG outperforms 93.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IPG is significantly above the industry average of 6.94%.
The 3 year average ROIC (12.24%) for IPG is below the current ROIC(12.25%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 6.45%, IPG is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
IPG's Profit Margin has been stable in the last couple of years.
IPG has a Operating Margin of 13.38%. This is in the better half of the industry: IPG outperforms 73.20% of its industry peers.
In the last couple of years the Operating Margin of IPG has grown nicely.
IPG's Gross Margin of 17.02% is on the low side compared to the rest of the industry. IPG is outperformed by 76.29% of its industry peers.
IPG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
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.
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.
Looking at the Altman-Z score, with a value of 1.60, IPG is in the better half of the industry, outperforming 64.95% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 3.24, IPG belongs to the best of the industry, outperforming 81.44% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that IPG is somewhat dependend on debt financing.
IPG has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: IPG outperforms 53.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.41
WACC8.67%
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 Current ratio of 1.09. This is in the lower half of the industry: IPG underperforms 62.89% of its industry peers.
A Quick Ratio of 1.09 indicates that IPG should not have too much problems paying its short term obligations.
IPG has a Quick ratio of 1.09. This is in the lower half of the industry: IPG underperforms 61.86% 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 for IPG have decreased by -1.77% in the last year.
IPG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.46% yearly.
The Revenue has decreased by -1.81% in the past year.
The Revenue has been growing slightly by 0.90% on average over the past years.
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
IPG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.71% yearly.
The Revenue is expected to grow by 0.76% on average over the next years.
EPS Next Y-3.2%
EPS Next 2Y2.11%
EPS Next 3Y3.71%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.61, the valuation of IPG can be described as very reasonable.
Based on the Price/Earnings ratio, IPG is valued cheaply inside the industry as 80.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, IPG is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.90, the valuation of IPG can be described as very reasonable.
IPG's Price/Forward Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 82.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, IPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
IPG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IPG is cheaper than 75.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IPG indicates a somewhat cheap valuation: IPG is cheaper than 76.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.77 | ||
| EV/EBITDA | 5.72 |
4.3 Compensation for Growth
IPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y2.11%
EPS Next 3Y3.71%
5. Dividend
5.1 Amount
IPG has a Yearly Dividend Yield of 5.49%, which is a nice return.
Compared to an average industry Dividend Yield of 5.06, IPG pays a better dividend. On top of this IPG pays more dividend than 90.72% 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 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
5.2 History
On average, the dividend of IPG grows each year by 7.02%, which is quite nice.
IPG has been paying a dividend for at least 10 years, so it has 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)7.02%
Div Incr Years12
Div Non Decr Years13
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 2Y2.11%
EPS Next 3Y3.71%
23.94
+0.67 (+2.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change0.01%
Ins Owners0.23%
Ins Owner Change5.56%
Market Cap8.92B
Analysts71.43
Price Target34.3 (43.27%)
Short Float %9%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Yearly Dividend1.32
Dividend Growth(5Y)7.02%
DP72.01%
Div Incr Years12
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.78%
Min EPS beat(2)-6.3%
Max EPS beat(2)-1.26%
EPS beat(4)2
Avg EPS beat(4)-1.04%
Min EPS beat(4)-6.3%
Max EPS beat(4)1.96%
EPS beat(8)4
Avg EPS beat(8)-0.18%
EPS beat(12)7
Avg EPS beat(12)2.28%
EPS beat(16)11
Avg EPS beat(16)19.69%
Revenue beat(2)1
Avg Revenue beat(2)5.23%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)13.99%
Revenue beat(4)1
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)13.99%
Revenue beat(8)1
Avg Revenue beat(8)-0.21%
Revenue beat(12)5
Avg Revenue beat(12)5.2%
Revenue beat(16)9
Avg Revenue beat(16)8.04%
PT rev (1m)0.8%
PT rev (3m)2.54%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)-22.08%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-7.32%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.83 | ||
| P/FCF | 9.77 | ||
| P/OCF | 8.45 | ||
| P/B | 2.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.72 |
EPS(TTM)2.78
EY11.61%
EPS(NY)2.69
Fwd EY11.24%
FCF(TTM)2.45
FCFY10.24%
OCF(TTM)2.83
OCFY11.83%
SpS28.69
BVpS10.19
TBVpS-4.16
PEG (NY)N/A
PEG (5Y)1.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 18.16% | ||
| ROCE | 16.69% | ||
| ROIC | 12.25% | ||
| ROICexc | 16.43% | ||
| ROICexgc | 98.4% | ||
| OM | 13.38% | ||
| PM (TTM) | 6.45% | ||
| GM | 17.02% | ||
| FCFM | 8.54% |
ROA(3y)4.81%
ROA(5y)4.23%
ROE(3y)23.91%
ROE(5y)22.18%
ROIC(3y)12.24%
ROIC(5y)11.44%
ROICexc(3y)16.75%
ROICexc(5y)16.19%
ROICexgc(3y)154.9%
ROICexgc(5y)748.63%
ROCE(3y)16.68%
ROCE(5y)15.58%
ROICexcg growth 3Y-66.71%
ROICexcg growth 5Y8.87%
ROICexc growth 3Y-3.72%
ROICexc growth 5Y7.42%
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%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 54.77% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 6.19 | ||
| Cash Conversion | 62.47% | ||
| Profit Quality | 132.47% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.6 |
F-Score7
WACC8.67%
ROIC/WACC1.41
Cap/Depr(3y)62.54%
Cap/Depr(5y)62.81%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.67%
Profit Quality(3y)70.86%
Profit Quality(5y)177.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.77%
EPS 3Y2.26%
EPS 5Y7.46%
EPS Q2Q%-5.93%
EPS Next Y-3.2%
EPS Next 2Y2.11%
EPS Next 3Y3.71%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.81%
Revenue growth 3Y1.45%
Revenue growth 5Y0.9%
Sales Q2Q%12.13%
Revenue Next Year-7.51%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.56%
Revenue Next 5Y0.76%
EBIT growth 1Y-3.53%
EBIT growth 3Y-0.39%
EBIT growth 5Y5.01%
EBIT Next Year13.04%
EBIT Next 3Y8.29%
EBIT Next 5Y5.28%
FCF growth 1Y143.31%
FCF growth 3Y-21.39%
FCF growth 5Y-7.25%
OCF growth 1Y90.23%
OCF growth 3Y-20.19%
OCF growth 5Y-7.15%