OMNICOM GROUP (OMC)
US6819191064 - Common Stock
We assign a fundamental rating of 6 out of 10 to OMC. OMC was compared to 92 industry peers in the Media industry. OMC scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OMC. Finally OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OMC had positive earnings in the past year.
OMC had a positive operating cash flow in the past year.
Each year in the past 5 years OMC has been profitable.
OMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.06%, OMC belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.91%, OMC belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
OMC has a better Return On Invested Capital (12.49%) than 93.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OMC is significantly above the industry average of 6.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 36.91% | ||
| ROIC | 12.49% |
ROA(3y)4.93%
ROA(5y)4.64%
ROE(3y)40.67%
ROE(5y)39.91%
ROIC(3y)13.31%
ROIC(5y)12.97%
1.3 Margins
OMC has a Profit Margin of 9.45%. This is amongst the best in the industry. OMC outperforms 82.42% of its industry peers.
In the last couple of years the Profit Margin of OMC has grown nicely.
Looking at the Operating Margin, with a value of 14.96%, OMC belongs to the top of the industry, outperforming 82.42% of the companies in the same industry.
In the last couple of years the Operating Margin of OMC has grown nicely.
The Gross Margin of OMC (27.13%) is worse than 69.23% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 9.45% | ||
| GM | 27.13% |
OM growth 3Y4.17%
OM growth 5Y3.5%
PM growth 3Y9.69%
PM growth 5Y1.78%
GM growth 3Y0.81%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
OMC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
OMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OMC has less shares outstanding
The debt/assets ratio for OMC has been reduced compared to a year ago.
2.2 Solvency
OMC has an Altman-Z score of 1.75. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.75, OMC is doing good in the industry, outperforming 67.03% of the companies in the same industry.
The Debt to FCF ratio of OMC is 4.63, which is a neutral value as it means it would take OMC, 4.63 years of fcf income to pay off all of its debts.
OMC's Debt to FCF ratio of 4.63 is fine compared to the rest of the industry. OMC outperforms 75.82% of its industry peers.
OMC has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
OMC has a worse Debt to Equity ratio (1.57) than 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 1.75 |
ROIC/WACC1.7
WACC7.33%
2.3 Liquidity
A Current Ratio of 0.98 indicates that OMC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.98, OMC is doing worse than 74.73% of the companies in the same industry.
OMC has a Quick Ratio of 0.98. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.93, OMC is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.24%.
OMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.26% yearly.
OMC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.40%.
OMC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.79% yearly.
EPS 1Y (TTM)7.24%
EPS 3Y12.42%
EPS 5Y5.26%
EPS Q2Q%9.14%
Revenue 1Y (TTM)6.4%
Revenue growth 3Y3.71%
Revenue growth 5Y-0.79%
Sales Q2Q%8.51%
3.2 Future
OMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.46% yearly.
OMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y8.55%
EPS Next 2Y8.36%
EPS Next 3Y8.19%
EPS Next 5Y6.46%
Revenue Next Year7.41%
Revenue Next 2Y5.94%
Revenue Next 3Y5.47%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.18, the valuation of OMC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 75.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.83. OMC is valued rather cheaply when compared to this.
OMC is valuated reasonably with a Price/Forward Earnings ratio of 10.06.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 81.32% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (22.65), we can say OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OMC is valued a bit cheaper than 62.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than the industry average as 73.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.4 | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)2.13
EPS Next 2Y8.36%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
OMC has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 4.18, OMC pays a better dividend. On top of this OMC pays more dividend than 83.52% of the companies listed in the same industry.
OMC's Dividend Yield is a higher than the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
5.2 History
The dividend of OMC has a limited annual growth rate of 3.05%.
OMC has been paying a dividend for at least 10 years, so it has 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)3.05%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
OMC pays out 38.04% of its income as dividend. This is a sustainable payout ratio.
The dividend of OMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.04%
EPS Next 2Y8.36%
EPS Next 3Y8.19%
OMNICOM GROUP
NYSE:OMC (12/18/2024, 6:30:00 PM)
After market: 87.75 0 (0%)87.75
-1.22 (-1.37%)
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 Cap17.12B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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Revenue beat(2)
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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 | 11.18 | ||
| Fwd PE | 10.06 | ||
| 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)1.31
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 36.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.96% | ||
| PM (TTM) | 9.45% | ||
| GM | 27.13% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.93 | ||
| 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)7.24%
EPS 3Y12.42%
EPS 5Y
EPS Q2Q%
EPS Next Y8.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.4%
Revenue growth 3Y3.71%
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