OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
78.16 USD
-0.92 (-1.16%)
78.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to OMC. OMC was compared to 91 industry peers in the Media industry. While OMC has a great profitability rating, there are some minor concerns on its financial health. OMC may be a bit undervalued, certainly considering the very reasonable score on growth OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OMC was profitable.
In the past year OMC had a positive cash flow from operations.
In the past 5 years OMC has always been profitable.
In the past 5 years OMC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OMC (4.63%) is better than 79.12% of its industry peers.
With an excellent Return On Equity value of 28.93%, OMC belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
The Return On Invested Capital of OMC (14.29%) is better than 95.60% 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 7.07%.
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 79.12% of its industry peers.
OMC's Profit Margin has been stable in the last couple of years.
OMC has a Operating Margin of 15.00%. This is amongst the best in the industry. OMC outperforms 81.32% of its industry peers.
OMC's Operating Margin has been stable in the last couple of years.
OMC has a Gross Margin of 26.90%. This is in the lower half of the industry: OMC underperforms 70.33% 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
OMC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
OMC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for OMC has been reduced compared to 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 1.98. 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 has a better Altman-Z score (1.98) than 70.33% 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.
Looking at the Debt to FCF ratio, with a value of 3.78, OMC is in the better half of the industry, outperforming 79.12% 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 | 1.98 |
ROIC/WACC1.9
WACC7.51%
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 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: 64.84% 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.
Measured over the past 5 years, OMC shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
OMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.13%.
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 quite strong growth in Revenue. The Revenue will grow by 13.31% 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 5Y13.31%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.30, 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 82.42% of the companies listed in the same industry.
OMC is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.98, 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 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (23.98), we can say OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OMC is cheaper than 60.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 10.56 |
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.
PEG (NY)1.59
PEG (5Y)1.59
EPS Next 2Y10.24%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.06%, OMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.31, OMC pays a better dividend. On top of this OMC pays more dividend than 86.81% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
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%
78.16
-0.92 (-1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.69%
Inst Owner Change0.31%
Ins Owners0.77%
Ins Owner Change5.5%
Market Cap24.80B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts75.29
Price Target102.63 (31.31%)
Short Float %7.25%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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 | 9.3 | ||
| Fwd PE | 7.98 | ||
| P/S | 1.54 | ||
| P/FCF | 14.87 | ||
| P/OCF | 13.58 | ||
| P/B | 5.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)8.4
EY10.75%
EPS(NY)9.8
Fwd EY12.53%
FCF(TTM)5.26
FCFY6.73%
OCF(TTM)5.75
OCFY7.36%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.59
PEG (5Y)1.59
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 | 1.98 |
F-Score6
WACC7.51%
ROIC/WACC1.9
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 5Y13.31%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year20.88%
EBIT Next 3Y19.42%
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 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.