INTERPUBLIC GROUP OF COS INC (IPG)
US4606901001 - Common Stock
Overall IPG gets a fundamental rating of 6 out of 10. We evaluated IPG against 92 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 quite cheap, while showing a decent growth score. This is a good combination! IPG also has an excellent dividend rating. This makes IPG very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
IPG had positive earnings in the past year.
IPG had a positive operating cash flow in the past year.
IPG had positive earnings in each of the past 5 years.
Each year in the past 5 years IPG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of IPG (4.73%) is better than 79.12% of its industry peers.
With an excellent Return On Equity value of 21.69%, IPG belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
IPG's Return On Invested Capital of 13.18% is amongst the best of the industry. IPG outperforms 95.60% 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 7.61%.
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 has a Profit Margin of 7.44%. This is in the better half of the industry: IPG outperforms 74.73% of its industry peers.
In the last couple of years the Profit Margin of IPG has grown nicely.
The Operating Margin of IPG (13.60%) is better than 74.73% of its industry peers.
IPG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.01%, IPG is doing worse than 81.32% of the companies in the same industry.
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.
Compared to 1 year ago, IPG has less shares outstanding
IPG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for IPG is higher compared to a year ago.
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 64.84% of its industry peers.
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.
A Debt/Equity ratio of 0.79 indicates that IPG is somewhat dependend on debt financing.
IPG has a Debt to Equity ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 1.8 |
ROIC/WACC1.59
WACC8.29%
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 worse Current ratio (1.09) than 71.43% of its industry peers.
A Quick Ratio of 1.09 indicates that IPG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, IPG is doing worse than 70.33% 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.
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
Based on estimates for the next years, IPG will show a small growth in Earnings Per Share. The EPS will grow by 1.29% on average per year.
The Revenue is expected to grow by 1.87% on average over the next years.
EPS Next Y1.08%
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
EPS Next 5YN/A
Revenue Next Year-1.02%
Revenue Next 2Y-1.19%
Revenue Next 3Y0.22%
Revenue Next 5Y1.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.23 indicates a reasonable valuation of IPG.
IPG's Price/Earnings ratio is rather cheap when compared to the industry. IPG is cheaper than 81.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.65, IPG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.48, the valuation of IPG can be described as very reasonable.
Based on the Price/Forward Earnings ratio, IPG is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, IPG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
78.02% of the companies in the same industry are more expensive than IPG, based on the Enterprise Value to EBITDA ratio.
70.33% of the companies in the same industry are more expensive than IPG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 6.88 |
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.
IPG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.48
PEG (5Y)1.12
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
5. Dividend
5.1 Amount
IPG has a Yearly Dividend Yield of 4.52%, which is a nice return.
IPG's Dividend Yield is rather good when compared to the industry average which is at 3.98. IPG pays more dividend than 90.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, IPG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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 Years11
Div Non Decr Years12
5.3 Sustainability
60.83% 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.
DP60.83%
EPS Next 2Y-0.86%
EPS Next 3Y1.29%
INTERPUBLIC GROUP OF COS INC
NYSE:IPG (11/21/2024, 4:33:44 PM)
After market: 29.15 0 (0%)29.15
+0.77 (+2.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 10.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)9.48
PEG (5Y)1.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 21.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.6% | ||
| PM (TTM) | 7.44% | ||
| GM | 17.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.74%
EPS 3Y17.83%
EPS 5Y
EPS Q2Q%
EPS Next Y1.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.06%
Revenue growth 3Y6.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y