OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

75.295 USD
-1.52 (-1.99%)
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

  • OMC had positive earnings in the past year.
  • In the past year OMC had a positive cash flow from operations.
  • 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

  • The Return On Assets of OMC (-0.10%) is better than 68.89% of its industry peers.
  • OMC has a Return On Equity of -0.45%. This is in the better half of the industry: OMC outperforms 70.00% of its industry peers.
  • OMC's Return On Invested Capital of 8.19% is amongst the best of the industry. OMC outperforms 86.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for OMC is above the industry average of 7.63%.
  • The last Return On Invested Capital (8.19%) for OMC is well below the 3 year average (12.34%), which needs to be investigated, but indicates that OMC had better years and this may not be a problem.
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

  • The Operating Margin of OMC (14.97%) is better than 82.22% of its industry peers.
  • In the last couple of years the Operating Margin of OMC has grown nicely.
  • OMC has a Gross Margin of 26.79%. This is in the lower half of the industry: OMC underperforms 64.44% of its industry peers.
  • OMC's Gross Margin has been stable in the last couple of years.
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
  • OMC has a better debt/assets ratio than last year.
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 1.02. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
  • OMC's Altman-Z score of 1.02 is in line compared to the rest of the industry. OMC outperforms 55.56% of its industry peers.
  • 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.
  • OMC has a Debt to FCF ratio of 3.27. This is amongst the best in the industry. OMC outperforms 81.11% of its industry peers.
  • OMC has a Debt/Equity ratio of 0.64. This is a neutral value indicating OMC is somewhat dependend on debt financing.
  • OMC has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: OMC outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.02
ROIC/WACC1.02
WACC8%
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

  • OMC has a Current 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.
  • The Current ratio of OMC (0.93) is worse than 65.56% 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's Quick ratio of 0.86 is on the low side compared to the rest of the industry. OMC is outperformed by 64.44% 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

  • The Earnings Per Share has been growing slightly by 6.45% over the past year.
  • OMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.41% yearly.
  • 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

  • OMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.25% yearly.
  • The Revenue is expected to grow by 11.76% on average over the next years. This is quite good.
EPS Next Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
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 8.78.
  • 87.78% of the companies in the same industry are more expensive than OMC, based on the Price/Earnings ratio.
  • OMC is valuated cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 6.86, which indicates a rather cheap valuation of OMC.
  • Based on the Price/Forward Earnings ratio, OMC is valued cheaper than 84.44% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (22.62), we can say OMC is valued rather cheaply.
Industry RankSector Rank
PE 8.78
Fwd PE 6.86
OMC Price Earnings VS Forward Price EarningsOMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 74.44% of the companies in the same industry are more expensive than OMC, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, OMC is valued cheaper than 82.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.7
EV/EBITDA 8.41
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

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.
  • A more expensive valuation may be justified as OMC's earnings are expected to grow with 18.74% in the coming years.
PEG (NY)0.31
PEG (5Y)0.84
EPS Next 2Y21.09%
EPS Next 3Y18.74%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. OMC Dividend Analysis

5.1 Amount

  • OMC has a Yearly Dividend Yield of 4.06%, which is a nice return.
  • Compared to an average industry Dividend Yield of 1.05, OMC pays a better dividend. On top of this OMC pays more dividend than 90.00% of the companies listed in the same industry.
  • OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 4.06%

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 their dividend for at least 10 years, which is a reliable track record.
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

  • OMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1008.44%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
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 (4/24/2026, 1:37:09 PM)

75.295

-1.52 (-1.99%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners111.89%
Inst Owner Change0.14%
Ins Owners0.86%
Ins Owner Change12.48%
Market Cap21.46B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target100.82 (33.9%)
Short Float %12.04%
Short Ratio6.1
Dividend
Industry RankSector Rank
Dividend Yield 4.06%
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)0.07%
PT rev (3m)-0.87%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)12.02%
Revenue NQ rev (1m)4.21%
Revenue NQ rev (3m)16.54%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)23.64%
Valuation
Industry RankSector Rank
PE 8.78
Fwd PE 6.86
P/S 1.24
P/FCF 7.7
P/OCF 7.3
P/B 1.78
P/tB N/A
EV/EBITDA 8.41
EPS(TTM)8.58
EY11.4%
EPS(NY)10.97
Fwd EY14.57%
FCF(TTM)9.78
FCFY12.99%
OCF(TTM)10.31
OCFY13.69%
SpS60.61
BVpS42.27
TBVpS-41.04
PEG (NY)0.31
PEG (5Y)0.84
Graham Number90.3312 (19.97%)
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 1.02
F-Score4
WACC8%
ROIC/WACC1.02
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 Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
Revenue Next 5Y11.76%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year118.85%
EBIT Next 3Y35.82%
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 27.89% in the next year.