OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:OMC • US6819191064
67.99 USD
-8.53 (-11.15%)
At close: Feb 3, 2026
67.89 USD
-0.1 (-0.15%)
Pre-Market: 2/4/2026, 8:21:39 AM
OMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 91 industry peers in the Media industry. OMC has an excellent profitability rating, but there are some minor concerns on its financial health. OMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
- Each year in the past 5 years OMC has been profitable.
- Each year in the past 5 years OMC had a positive operating cash flow.
1.2 Ratios
- OMC has a better Return On Assets (4.63%) than 80.22% of its industry peers.
- OMC's Return On Equity of 28.93% is amongst the best of the industry. OMC outperforms 96.70% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.29%, OMC belongs to the top of the industry, outperforming 95.60% 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 7.01%.
- 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 80.22% of its industry peers.
- OMC's Profit Margin has been stable in the last couple of years.
- OMC has a better Operating Margin (15.00%) than 81.32% of its industry peers.
- In the last couple of years the Operating Margin of OMC has remained more or less at the same level.
- OMC's Gross Margin of 26.90% is on the low side compared to the rest of the industry. OMC is outperformed by 68.13% 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
- OMC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for OMC has been reduced compared to 1 year ago.
- OMC has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for OMC is higher compared to a year ago.
2.2 Solvency
- OMC has an Altman-Z score of 1.90. This is not the best score and indicates that OMC is in the grey zone with still only limited risk for bankruptcy at the moment.
- OMC's Altman-Z score of 1.90 is fine compared to the rest of the industry. OMC outperforms 72.53% 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.
- OMC's Debt to FCF ratio of 3.78 is fine compared to the rest of the industry. OMC outperforms 79.12% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that OMC has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.06, OMC is in line with its industry, outperforming 49.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.92
WACC7.44%
2.3 Liquidity
- A Current Ratio of 0.92 indicates that OMC may have some problems paying its short term obligations.
- OMC's Current ratio of 0.92 is on the low side compared to the rest of the industry. OMC is outperformed by 62.64% of its industry peers.
- A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
- With a Quick ratio value of 0.87, OMC is not doing good in the industry: 63.74% of the companies in the same industry are doing better.
| 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.
- OMC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.87% yearly.
- Looking at the last year, OMC shows a small growth in Revenue. The Revenue has grown by 4.13% in the last year.
- The Revenue has been growing slightly by 0.96% on average over the past years.
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
- OMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
- Based on estimates for the next years, OMC will show a quite strong growth in Revenue. The Revenue will grow by 13.31% on average per year.
EPS Next Y5.96%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
EPS Next 5Y5.4%
Revenue Next Year3.62%
Revenue Next 2Y20.47%
Revenue Next 3Y15.61%
Revenue Next 5Y13.31%
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
- The Price/Earnings ratio is 8.09, which indicates a very decent valuation of OMC.
- 84.62% 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 28.18, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 6.81, which indicates a rather cheap valuation of OMC.
- 79.12% of the companies in the same industry are more expensive than OMC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 6.81 |
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 64.84% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than the industry average as 67.03% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
- OMC's 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.
- A more expensive valuation may be justified as OMC's earnings are expected to grow with 12.84% in the coming years.
PEG (NY)1.36
PEG (5Y)1.38
EPS Next 2Y11.28%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
- OMC has a Yearly Dividend Yield of 4.22%, which is a nice return.
- OMC's Dividend Yield is rather good when compared to the industry average which is at 1.17. OMC pays more dividend than 89.01% of the companies in the same industry.
- OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
- The dividend of OMC has a limited annual growth rate of 1.83%.
- 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)1.83%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
- 41.26% of the earnings are spent on dividend by OMC. This is a bit on the high side, but may be sustainable.
- OMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.26%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
67.99
-8.53 (-11.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners75.69%
Inst Owner Change8.35%
Ins Owners0.77%
Ins Owner Change5.5%
Market Cap21.58B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts75.29
Price Target101.7 (49.58%)
Short Float %6.58%
Short Ratio4.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend2.8
Dividend Growth(5Y)1.83%
DP41.26%
Div Incr Years0
Div Non Decr Years34
Ex-DateN/A
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)-0.9%
PT rev (3m)-0.54%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 6.81 | ||
| P/S | 1.34 | ||
| P/FCF | 12.93 | ||
| P/OCF | 11.82 | ||
| P/B | 4.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.23 |
EPS(TTM)8.4
EY12.35%
EPS(NY)9.98
Fwd EY14.68%
FCF(TTM)5.26
FCFY7.73%
OCF(TTM)5.75
OCFY8.46%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.36
PEG (5Y)1.38
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 | 1.9 |
F-Score6
WACC7.44%
ROIC/WACC1.92
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 Y5.96%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
EPS Next 5Y5.4%
Revenue 1Y (TTM)4.13%
Revenue growth 3Y3.16%
Revenue growth 5Y0.96%
Sales Q2Q%3.98%
Revenue Next Year3.62%
Revenue Next 2Y20.47%
Revenue Next 3Y15.61%
Revenue Next 5Y13.31%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year28.91%
EBIT Next 3Y25.65%
EBIT Next 5Y13.24%
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.
What is the valuation status of OMNICOM GROUP (OMC) stock?
ChartMill assigns a valuation rating of 8 / 10 to OMNICOM GROUP (OMC). This can be considered as Undervalued.
Can you provide the profitability details for OMNICOM GROUP?
OMNICOM GROUP (OMC) has a profitability rating of 8 / 10.
How financially healthy is OMNICOM GROUP?
The financial health rating of OMNICOM GROUP (OMC) is 4 / 10.
What is the earnings growth outlook for OMNICOM GROUP?
The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 5.96% in the next year.