OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
81.32 USD
+0.57 (+0.71%)
81.958 USD
+0.64 (+0.78%)
We assign a fundamental rating of 6 out of 10 to OMC. OMC was compared to 91 industry peers in the Media industry. OMC scores excellent on profitability, but there are some minor concerns on its financial health. OMC is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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 78.95% of its industry peers.
OMC has a better Return On Equity (28.93%) than 96.84% of its industry peers.
The Return On Invested Capital of OMC (14.29%) is better than 95.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OMC is significantly above the industry average of 6.93%.
The 3 year average ROIC (13.47%) for OMC is below the current ROIC(14.29%), indicating increased profibility in the last year.
| 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's Profit Margin of 8.31% is fine compared to the rest of the industry. OMC outperforms 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.
Looking at the Operating Margin, with a value of 15.00%, OMC belongs to the top of the industry, outperforming 81.05% of the companies in the same industry.
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 69.47% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
OMC has an Altman-Z score of 2.00. 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.
With a decent Altman-Z score value of 2.00, OMC is doing good in the industry, outperforming 71.58% of the companies in the same industry.
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 has a Debt to FCF ratio of 3.78. This is in the better half of the industry: OMC outperforms 78.95% 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.
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 | 2 |
ROIC/WACC1.89
WACC7.56%
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 61.05% of its industry peers.
A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
OMC has a worse Quick ratio (0.87) than 63.16% of its industry peers.
| 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.
OMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.13%.
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
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.
The Revenue is expected to grow by 2.20% on average over the next years.
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 9.68.
OMC's Price/Earnings ratio is rather cheap when compared to the industry. OMC is cheaper than 81.05% 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 26.60.
With a Price/Forward Earnings ratio of 8.30, the valuation of OMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than 74.74% of the companies in the same industry.
OMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OMC is cheaper than 61.05% of the companies in the same industry.
63.16% 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 | 15.47 | ||
| EV/EBITDA | 10.83 |
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)1.65
PEG (5Y)1.65
EPS Next 2Y10.24%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
OMC has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.28, OMC pays a better dividend. On top of this OMC pays more dividend than 85.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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
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 2Y10.24%
EPS Next 3Y11.26%
81.32
+0.57 (+0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.69%
Inst Owner Change0%
Ins Owners0.77%
Ins Owner Change5.27%
Market Cap25.81B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price Target102.63 (26.21%)
Short Float %7.25%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
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)0.64%
PT rev (3m)2.5%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.27%
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)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.61 | ||
| P/FCF | 15.47 | ||
| P/OCF | 14.13 | ||
| P/B | 5.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.83 |
EPS(TTM)8.4
EY10.33%
EPS(NY)9.8
Fwd EY12.05%
FCF(TTM)5.26
FCFY6.46%
OCF(TTM)5.75
OCFY7.08%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.65
PEG (5Y)1.65
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 | 2 |
F-Score6
WACC7.56%
ROIC/WACC1.89
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.
What is the valuation status of OMNICOM GROUP (OMC) stock?
ChartMill assigns a valuation rating of 7 / 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 5.85% in the next year.