OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

78.72 USD
+0.92 (+1.18%)
At close:
78.72 USD
0 (0%)
After Hours:

This OMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

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

  • OMC has a better Return On Assets (-0.10%) than 68.48% of its industry peers.
  • The Return On Equity of OMC (-0.45%) is better than 69.57% of its industry peers.
  • OMC's Return On Invested Capital of 8.19% is amongst the best of the industry. OMC outperforms 88.04% of its industry peers.
  • OMC had an Average Return On Invested Capital over the past 3 years of 12.34%. This is significantly above the industry average of 6.77%.
  • 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

  • With an excellent Operating Margin value of 14.97%, OMC belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • OMC's Operating Margin has improved in the last couple of years.
  • OMC has a worse Gross Margin (26.79%) than 65.22% 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

  • 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 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 1.05. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of OMC (1.05) is comparable to the rest of the industry.
  • OMC has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as OMC would need 3.27 years to pay back of all of its debts.
  • OMC's Debt to FCF ratio of 3.27 is amongst the best of the industry. OMC outperforms 82.61% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.64, OMC is in line with its industry, outperforming 53.26% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.05
ROIC/WACC1.13
WACC7.24%
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.
  • OMC's Current ratio of 0.93 is on the low side compared to the rest of the industry. OMC is outperformed by 65.22% 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.
  • With a Quick ratio value of 0.86, OMC is not doing good in the industry: 66.30% of the companies in the same industry are doing better.
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.
  • Measured over the past years, OMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.41% on average per year.
  • Looking at the last year, OMC shows a quite strong growth in Revenue. The Revenue has grown by 10.09% in the last year.
  • The Revenue has been growing slightly by 5.57% on average over the past years.
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 Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue Next Year51.77%
Revenue Next 2Y24.32%
Revenue Next 3Y16.77%
Revenue Next 5Y11.76%

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.
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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8

4. OMC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.17, which indicates a very decent valuation of OMC.
  • Compared to the rest of the industry, the Price/Earnings ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 85.87% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.96. OMC is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 7.14, which indicates a rather cheap valuation of OMC.
  • OMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMC is cheaper than 79.35% of the companies in the same industry.
  • OMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.17
Fwd PE 7.14
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 64.13% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 76.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 8.76
EV/EBITDA 9.19
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

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.
  • OMC has a very decent profitability rating, which may justify a higher PE ratio.
  • OMC's earnings are expected to grow with 20.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.88
EPS Next 2Y23.19%
EPS Next 3Y20.37%

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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 4.11%, which is a nice return.
  • OMC's Dividend Yield is rather good when compared to the industry average which is at 1.14. OMC pays more dividend than 88.04% of the companies in the same industry.
  • OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 4.11%

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 Years0
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

  • The earnings of OMC are negative and hence is the payout ratio. OMC will probably not be able to sustain this dividend level.
DP-1008.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
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 (3/16/2026, 8:04:00 PM)

After market: 78.72 0 (0%)

78.72

+0.92 (+1.18%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-13
Inst Owners102.71%
Inst Owner Change38.43%
Ins Owners0.79%
Ins Owner Change5.82%
Market Cap24.43B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target100.75 (27.99%)
Short Float %15.22%
Short Ratio9.37
Dividend
Industry RankSector Rank
Dividend Yield 4.11%
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP-1008.44%
Div Incr Years0
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)-1.1%
PT rev (3m)-1.2%
EPS NQ rev (1m)7.43%
EPS NQ rev (3m)8.19%
EPS NY rev (1m)10.11%
EPS NY rev (3m)16.51%
Revenue NQ rev (1m)11.79%
Revenue NQ rev (3m)11.79%
Revenue NY rev (1m)3.91%
Revenue NY rev (3m)48.1%
Valuation
Industry RankSector Rank
PE 9.17
Fwd PE 7.14
P/S 1.41
P/FCF 8.76
P/OCF 8.31
P/B 2.03
P/tB N/A
EV/EBITDA 9.19
EPS(TTM)8.58
EY10.9%
EPS(NY)11.02
Fwd EY14%
FCF(TTM)8.98
FCFY11.41%
OCF(TTM)9.47
OCFY12.03%
SpS55.65
BVpS38.81
TBVpS-37.69
PEG (NY)0.32
PEG (5Y)0.88
Graham Number86.56
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 1.05
F-Score4
WACC7.24%
ROIC/WACC1.13
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 Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year51.77%
Revenue Next 2Y24.32%
Revenue Next 3Y16.77%
Revenue Next 5Y11.76%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year122.46%
EBIT Next 3Y37.11%
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 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 7 / 10.


How financially healthy is OMNICOM GROUP?

The financial health rating of OMNICOM GROUP (OMC) is 3 / 10.


What is the earnings growth outlook for OMNICOM GROUP?

The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 28.44% in the next year.