OMNICOM GROUP (OMC)
US6819191064 - Common Stock
Taking everything into account, OMC scores 5 out of 10 in our fundamental rating. OMC was compared to 92 industry peers in the Media industry. While OMC has a great profitability rating, there are quite some concerns on its financial health. OMC is not valued too expensively and it also shows a decent growth rate. OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
OMC had positive earnings in the past year.
In the past year OMC had a positive cash flow from operations.
Each year in the past 5 years OMC has been profitable.
In the past 5 years OMC always reported a positive cash flow from operatings.
1.2 Ratios
OMC's Return On Assets of 5.06% is amongst the best of the industry. OMC outperforms 84.62% of its industry peers.
OMC has a Return On Equity of 36.91%. This is amongst the best in the industry. OMC outperforms 94.51% of its industry peers.
With an excellent Return On Invested Capital value of 12.49%, OMC belongs to the best of the industry, outperforming 93.41% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OMC is significantly above the industry average of 7.53%.
| 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
The Profit Margin of OMC (9.45%) is better than 82.42% of its industry peers.
OMC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 14.96%, OMC belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
In the last couple of years the Operating Margin of OMC has grown nicely.
OMC's Gross Margin of 27.13% is on the low side compared to the rest of the industry. OMC is outperformed by 71.43% 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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OMC has been reduced compared to 1 year ago.
The number of shares outstanding for OMC has been reduced compared to 5 years ago.
The debt/assets ratio for OMC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that OMC is in the distress zone and has some risk of bankruptcy.
OMC has a better Altman-Z score (1.79) than 64.84% of its industry peers.
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 has a Debt to FCF ratio of 4.63. This is in the better half 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.
Looking at the Debt to Equity ratio, with a value of 1.57, OMC is doing worse than 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 4.63 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.67
WACC7.47%
2.3 Liquidity
A Current Ratio of 0.98 indicates that OMC may have some problems paying its short term obligations.
OMC's Current ratio of 0.98 is on the low side compared to the rest of the industry. OMC is outperformed by 75.82% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.93, OMC is doing worse than 78.02% of the companies in the same industry.
| 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.
Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 6.40% in the last year.
The Revenue has been decreasing by -0.79% on average over the past years.
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 6.63% yearly.
Based on estimates for the next years, OMC will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y8.55%
EPS Next 2Y8.36%
EPS Next 3Y8.19%
EPS Next 5Y6.63%
Revenue Next Year7.41%
Revenue Next 2Y5.94%
Revenue Next 3Y5.47%
Revenue Next 5Y3.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
OMC is valuated correctly with a Price/Earnings ratio of 12.34.
Based on the Price/Earnings ratio, OMC is valued a bit cheaper than the industry average as 72.53% of the companies are valued more expensively.
OMC is valuated cheaply when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
OMC is valuated reasonably with a Price/Forward Earnings ratio of 11.10.
Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than 78.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (23.40), we can say OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.34 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OMC is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
OMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OMC is cheaper than 65.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
OMC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of OMC may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)2.35
EPS Next 2Y8.36%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
OMC has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
OMC's Dividend Yield is a higher than the industry average which is at 4.05.
Compared to an average S&P500 Dividend Yield of 2.22, OMC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.05%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
38.04% of the earnings are spent on dividend by OMC. This is a low number and 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 (11/15/2024, 8:04:00 PM)
After market: 96.09 -0.77 (-0.79%)96.86
-8.18 (-7.79%)
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 Cap18.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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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 | 12.34 | ||
| Fwd PE | 11.1 | ||
| 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)1.44
PEG (5Y)2.35
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