OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

76.31 USD
+1.5 (+2.01%)
Last:

This OMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. OMC Profitability Analysis

1.1 Basic Checks

  • In the past year OMC was profitable.
  • OMC had a positive operating cash flow in the past year.
  • OMC had positive earnings in 4 of the past 5 years.
  • In the past 5 years OMC always reported a positive cash flow from operatings.
OMC Yearly Net Income VS EBIT VS OCF VS FCFOMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With a decent Return On Assets value of -0.10%, OMC is doing good in the industry, outperforming 69.23% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -0.45%, OMC is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
  • OMC has a better Return On Invested Capital (8.19%) than 85.71% of its industry peers.
  • OMC had an Average Return On Invested Capital over the past 3 years of 12.34%. This is above the industry average of 7.73%.
  • The 3 year average ROIC (12.34%) for OMC is well above the current ROIC(8.19%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -0.1%
ROE -0.45%
ROIC 8.19%
ROA(3y)3.29%
ROA(5y)3.94%
ROE(3y)24.44%
ROE(5y)31.37%
ROIC(3y)12.34%
ROIC(5y)13.08%
OMC Yearly ROA, ROE, ROICOMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

1.3 Margins

  • With an excellent Operating Margin value of 14.97%, OMC belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
  • OMC's Operating Margin has improved in the last couple of years.
  • OMC has a worse Gross Margin (26.79%) than 63.74% of its industry peers.
  • In the last couple of years the Gross Margin of OMC has remained more or less at the same level.
Industry RankSector Rank
OM 14.97%
PM (TTM) N/A
GM 26.79%
OM growth 3Y-0.88%
OM growth 5Y2.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y0.21%
OMC Yearly Profit, Operating, Gross MarginsOMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20 25

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3

2. OMC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OMC is creating some value.
  • The number of shares outstanding for OMC has been increased compared to 1 year ago.
  • Compared to 5 years ago, OMC has more shares outstanding
  • Compared to 1 year ago, OMC has an improved debt to assets ratio.
OMC Yearly Shares OutstandingOMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
OMC Yearly Total Debt VS Total AssetsOMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • OMC has an Altman-Z score of 1.03. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.03, OMC is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • The Debt to FCF ratio of OMC is 3.27, which is a good value as it means it would take OMC, 3.27 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 3.27, OMC belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
  • A Debt/Equity ratio of 0.64 indicates that OMC is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.64, OMC is in line with its industry, outperforming 51.65% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.03
ROIC/WACC1.04
WACC7.85%
OMC Yearly LT Debt VS Equity VS FCFOMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 0.93 indicates that OMC may have some problems paying its short term obligations.
  • OMC has a Current ratio of 0.93. This is in the lower half of the industry: OMC underperforms 64.84% of its industry peers.
  • OMC has a Quick Ratio of 0.93. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • OMC has a worse Quick ratio (0.86) than 62.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.86
OMC Yearly Current Assets VS Current LiabilitesOMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. OMC Growth Analysis

3.1 Past

  • OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
  • Measured over the past years, OMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.41% on average per year.
  • OMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.09%.
  • OMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y7.38%
EPS 5Y10.41%
EPS Q2Q%7.47%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.25% on average over the next years. This is quite good.
  • Based on estimates for the next years, OMC will show a quite strong growth in Revenue. The Revenue will grow by 11.76% on average per year.
EPS Next Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue Next Year52.96%
Revenue Next 2Y23.97%
Revenue Next 3Y16.77%
Revenue Next 5Y11.76%

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 accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
OMC Yearly Revenue VS EstimatesOMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
OMC Yearly EPS VS EstimatesOMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15

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9

4. OMC Valuation Analysis

4.1 Price/Earnings Ratio

  • OMC is valuated reasonably with a Price/Earnings ratio of 8.89.
  • Based on the Price/Earnings ratio, OMC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, OMC is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 6.92, the valuation of OMC can be described as very cheap.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 83.52% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.05. OMC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.89
Fwd PE 6.92
OMC Price Earnings VS Forward Price EarningsOMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 69.23% of the companies listed in the same industry.
  • OMC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OMC is cheaper than 80.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.49
EV/EBITDA 8.87
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

  • OMC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of OMC may justify a higher PE ratio.
  • OMC's earnings are expected to grow with 20.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.85
EPS Next 2Y23.19%
EPS Next 3Y20.37%

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6

5. OMC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.33%, OMC is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.22, OMC pays a better dividend. On top of this OMC pays more dividend than 90.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, OMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.33%

5.2 History

  • The dividend of OMC decreases each year by -3.70%.
  • OMC has paid a dividend for at least 10 years, which is a reliable track record.
  • OMC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-3.7%
Div Incr Years1
Div Non Decr Years34
OMC Yearly Dividends per shareOMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • The earnings of OMC are negative and hence is the payout ratio. OMC will probably not be able to sustain this dividend level.
DP-1008.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
OMC Yearly Income VS Free CF VS DividendOMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

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OMC Fundamentals: All Metrics, Ratios and Statistics

OMNICOM GROUP

NYSE:OMC (4/6/2026, 12:24:03 PM)

76.31

+1.5 (+2.01%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners102.71%
Inst Owner Change0%
Ins Owners0.79%
Ins Owner Change12.48%
Market Cap23.68B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target101.67 (33.23%)
Short Float %13.19%
Short Ratio7.64
Dividend
Industry RankSector Rank
Dividend Yield 4.33%
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP-1008.44%
Div Incr Years1
Div Non Decr Years34
Ex-Date03-11
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-1.8%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)1.61%
Min EPS beat(4)-1.8%
Max EPS beat(4)3.99%
EPS beat(8)6
Avg EPS beat(8)1.69%
EPS beat(12)8
Avg EPS beat(12)2.11%
EPS beat(16)12
Avg EPS beat(16)2.81%
Revenue beat(2)1
Avg Revenue beat(2)3.99%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)8.66%
Revenue beat(4)2
Avg Revenue beat(4)1.67%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)8.66%
Revenue beat(8)3
Avg Revenue beat(8)0.83%
Revenue beat(12)5
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.87%
PT rev (1m)0.91%
PT rev (3m)-0.93%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)0%
EPS NY rev (3m)12.49%
Revenue NQ rev (1m)2.94%
Revenue NQ rev (3m)15.08%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)25.18%
Valuation
Industry RankSector Rank
PE 8.89
Fwd PE 6.92
P/S 1.37
P/FCF 8.49
P/OCF 8.06
P/B 1.97
P/tB N/A
EV/EBITDA 8.87
EPS(TTM)8.58
EY11.24%
EPS(NY)11.02
Fwd EY14.44%
FCF(TTM)8.98
FCFY11.77%
OCF(TTM)9.47
OCFY12.41%
SpS55.65
BVpS38.81
TBVpS-37.69
PEG (NY)0.31
PEG (5Y)0.85
Graham Number86.56
Profitability
Industry RankSector Rank
ROA -0.1%
ROE -0.45%
ROCE 10.4%
ROIC 8.19%
ROICexc 11.31%
ROICexgc N/A
OM 14.97%
PM (TTM) N/A
GM 26.79%
FCFM 16.14%
ROA(3y)3.29%
ROA(5y)3.94%
ROE(3y)24.44%
ROE(5y)31.37%
ROIC(3y)12.34%
ROIC(5y)13.08%
ROICexc(3y)18.6%
ROICexc(5y)20.64%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)15.64%
ROCE(5y)16.58%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-20.79%
ROICexc growth 5Y-11.99%
OM growth 3Y-0.88%
OM growth 5Y2.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y0.21%
F-Score4
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Debt/EBITDA 2.7
Cap/Depr 54.14%
Cap/Sales 0.87%
Interest Coverage 14.72
Cash Conversion 102.63%
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.86
Altman-Z 1.03
F-Score4
WACC7.85%
ROIC/WACC1.04
Cap/Depr(3y)49.82%
Cap/Depr(5y)99.8%
Cap/Sales(3y)0.77%
Cap/Sales(5y)1.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.45%
EPS 3Y7.38%
EPS 5Y10.41%
EPS Q2Q%7.47%
EPS Next Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year52.96%
Revenue Next 2Y23.97%
Revenue Next 3Y16.77%
Revenue Next 5Y11.76%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year122.46%
EBIT Next 3Y37.11%
EBIT Next 5Y14.32%
FCF growth 1Y75.05%
FCF growth 3Y48.69%
FCF growth 5Y11.08%
OCF growth 1Y69.5%
OCF growth 3Y46.92%
OCF growth 5Y11.24%

OMNICOM GROUP / OMC Fundamental Analysis FAQ

What is the ChartMill fundamental rating of OMNICOM GROUP (OMC) stock?

ChartMill assigns a fundamental rating of 6 / 10 to OMC.


What is the valuation status of OMNICOM GROUP (OMC) stock?

ChartMill assigns a valuation rating of 9 / 10 to OMNICOM GROUP (OMC). This can be considered as Undervalued.


What is the profitability of OMC stock?

OMNICOM GROUP (OMC) has a profitability rating of 6 / 10.


Can you provide the financial health for OMC stock?

The financial health rating of OMNICOM GROUP (OMC) is 3 / 10.


What is the expected EPS growth for OMNICOM GROUP (OMC) stock?

The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 28.44% in the next year.