OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
80.03 USD
+0.08 (+0.1%)
80.03 USD
0 (0%)
Overall OMC gets a fundamental rating of 6 out of 10. We evaluated OMC against 95 industry peers in the Media industry. While OMC has a great profitability rating, there are some minor 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
In the past year OMC was profitable.
OMC had a positive operating cash flow in the past year.
In the past 5 years OMC has always been profitable.
OMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OMC has a better Return On Assets (4.63%) than 77.89% of its industry peers.
OMC has a Return On Equity of 28.93%. This is amongst the best in the industry. OMC outperforms 96.84% of its industry peers.
The Return On Invested Capital of OMC (14.29%) is better than 94.74% of its industry peers.
OMC had an Average Return On Invested Capital over the past 3 years of 13.47%. This is significantly above the industry average of 7.09%.
The last Return On Invested Capital (14.29%) for OMC is above the 3 year average (13.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROIC | 14.29% |
ROA(3y)4.95%
ROA(5y)4.64%
ROE(3y)38.09%
ROE(5y)37.59%
ROIC(3y)13.47%
ROIC(5y)12.82%
1.3 Margins
OMC has a better Profit Margin (8.31%) than 78.95% of its industry peers.
In the last couple of years the Profit Margin of OMC has remained more or less at the same level.
With an excellent Operating Margin value of 15.00%, OMC belongs to the best of the industry, outperforming 81.05% of the companies in the same industry.
OMC's Operating Margin has been stable in the last couple of years.
OMC's Gross Margin of 26.90% is on the low side compared to the rest of the industry. OMC is outperformed by 70.53% of its industry peers.
OMC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% |
OM growth 3Y-0.15%
OM growth 5Y1.06%
PM growth 3Y-1.42%
PM growth 5Y1.06%
GM growth 3Y-0.09%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OMC is creating value.
Compared to 1 year ago, OMC has less shares outstanding
OMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that OMC is not a great score, but indicates only limited risk for bankruptcy at the moment.
OMC has a better Altman-Z score (1.99) than 70.53% of its industry peers.
The Debt to FCF ratio of OMC is 3.78, which is a good value as it means it would take OMC, 3.78 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.78, OMC is doing good in the industry, outperforming 77.89% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that OMC has dependencies on debt financing.
The Debt to Equity ratio of OMC (1.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.91
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.92 indicates that OMC may have some problems paying its short term obligations.
OMC has a worse Current ratio (0.92) than 63.16% of its industry peers.
A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, OMC is doing worse than 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.01% over the past year.
The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 4.13% in the last year.
OMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.96% yearly.
EPS 1Y (TTM)7.01%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%10.34%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%3.98%
3.2 Future
Based on estimates for the next years, OMC will show a small growth in Earnings Per Share. The EPS will grow by 5.40% on average per year.
Based on estimates for the next years, OMC will show a small growth in Revenue. The Revenue will grow by 2.20% on average per year.
EPS Next Y5.85%
EPS Next 2Y10.24%
EPS Next 3Y11.26%
EPS Next 5Y5.4%
Revenue Next Year3.63%
Revenue Next 2Y13.06%
Revenue Next 3Y9.29%
Revenue Next 5Y2.2%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
OMC is valuated reasonably with a Price/Earnings ratio of 9.53.
Based on the Price/Earnings ratio, OMC is valued a bit cheaper than 80.00% of the companies in the same industry.
OMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 8.17, the valuation of OMC can be described as reasonable.
74.74% of the companies in the same industry are more expensive than OMC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (23.46), we can say OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 8.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OMC.
62.11% of the companies in the same industry are more expensive than OMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.22 | ||
| EV/EBITDA | 10.67 |
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)1.63
PEG (5Y)1.62
EPS Next 2Y10.24%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, 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 88.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
5.2 History
The dividend of OMC has a limited annual growth rate of 1.83%.
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)1.83%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
OMC pays out 41.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of OMC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.26%
EPS Next 2Y10.24%
EPS Next 3Y11.26%
80.03
+0.08 (+0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners71.86%
Inst Owner Change1.71%
Ins Owners0.76%
Ins Owner Change5.79%
Market Cap25.40B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price Target102.63 (28.24%)
Short Float %9.59%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
Yearly Dividend2.8
Dividend Growth(5Y)1.83%
DP41.26%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)1.66%
Max EPS beat(2)2.6%
EPS beat(4)4
Avg EPS beat(4)2.28%
Min EPS beat(4)0.87%
Max EPS beat(4)3.99%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)9
Avg EPS beat(12)2.62%
EPS beat(16)13
Avg EPS beat(16)3.64%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.36%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)0.36%
Revenue beat(8)3
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)0.64%
PT rev (3m)5.24%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 8.17 | ||
| P/S | 1.58 | ||
| P/FCF | 15.22 | ||
| P/OCF | 13.91 | ||
| P/B | 5.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.67 |
EPS(TTM)8.4
EY10.5%
EPS(NY)9.8
Fwd EY12.24%
FCF(TTM)5.26
FCFY6.57%
OCF(TTM)5.75
OCFY7.19%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.63
PEG (5Y)1.62
Graham Number52.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROCE | 19.44% | ||
| ROIC | 14.29% | ||
| ROICexc | 19.69% | ||
| ROICexgc | N/A | ||
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% | ||
| FCFM | 10.38% |
ROA(3y)4.95%
ROA(5y)4.64%
ROE(3y)38.09%
ROE(5y)37.59%
ROIC(3y)13.47%
ROIC(5y)12.82%
ROICexc(3y)20.9%
ROICexc(5y)21.13%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.31%
ROCE(5y)17.43%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-5.78%
ROICexc growth 5Y-4.39%
OM growth 3Y-0.15%
OM growth 5Y1.06%
PM growth 3Y-1.42%
PM growth 5Y1.06%
GM growth 3Y-0.09%
GM growth 5Y0.37%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 66.07% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 12.85 | ||
| Cash Conversion | 68.94% | ||
| Profit Quality | 124.99% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.99 |
F-Score6
WACC7.5%
ROIC/WACC1.91
Cap/Depr(3y)43.65%
Cap/Depr(5y)95.75%
Cap/Sales(3y)0.66%
Cap/Sales(5y)1.44%
Profit Quality(3y)89.53%
Profit Quality(5y)106.8%
High Growth Momentum
Growth
EPS 1Y (TTM)7.01%
EPS 3Y8.05%
EPS 5Y5.87%
EPS Q2Q%10.34%
EPS Next Y5.85%
EPS Next 2Y10.24%
EPS Next 3Y11.26%
EPS Next 5Y5.4%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%3.98%
Revenue Next Year3.63%
Revenue Next 2Y13.06%
Revenue Next 3Y9.29%
Revenue Next 5Y2.2%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year20.88%
EBIT Next 3Y19.42%
EBIT Next 5Y6.32%
FCF growth 1Y131.29%
FCF growth 3Y7.57%
FCF growth 5Y-1.91%
OCF growth 1Y128.8%
OCF growth 3Y-3.77%
OCF growth 5Y-1.36%
OMNICOM GROUP / OMC FAQ
What is the ChartMill fundamental rating of OMNICOM GROUP (OMC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to OMC.
Can you provide the valuation status for OMNICOM GROUP?
ChartMill assigns a valuation rating of 6 / 10 to OMNICOM GROUP (OMC). This can be considered as Fairly Valued.
Can you provide the profitability details for OMNICOM GROUP?
OMNICOM GROUP (OMC) has a profitability rating of 8 / 10.
What is the earnings growth outlook for OMNICOM GROUP?
The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 5.85% in the next year.
How sustainable is the dividend of OMNICOM GROUP (OMC) stock?
The dividend rating of OMNICOM GROUP (OMC) is 8 / 10 and the dividend payout ratio is 41.26%.