OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
79.79 USD
-1.05 (-1.3%)
79.79 USD
0 (0%)
Overall OMC gets a fundamental rating of 6 out of 10. We evaluated OMC against 92 industry peers in the Media industry. While OMC has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on OMC. Finally OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- OMC had positive earnings in the past year.
- OMC had a positive operating cash flow in the past year.
- OMC had positive earnings in each of the past 5 years.
- Each year in the past 5 years OMC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.63%, OMC is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.93%, OMC belongs to the top of the industry, outperforming 96.70% of the companies in the same industry.
- 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.
- 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 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 79.12% of its industry peers.
- OMC's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 15.00%, OMC belongs to the best of the industry, outperforming 81.32% 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.
- Looking at the Gross Margin, with a value of 26.90%, OMC is doing worse than 70.33% of the companies in the same industry.
- 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.
- 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 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 70.33% 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 79.12% of its industry peers.
- OMC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.06, OMC is in line with its industry, outperforming 48.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2 |
ROIC/WACC1.89
WACC7.58%
2.3 Liquidity
- OMC has a Current Ratio of 0.92. This is a bad value and indicates that OMC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.92, OMC is doing worse than 62.64% of the companies in the same industry.
- A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
- OMC has a Quick ratio of 0.87. This is in the lower half of the industry: OMC underperforms 64.84% 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.
- 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%.
- Measured over the past years, OMC shows a small growth in Revenue. The Revenue has been growing by 0.96% on average per year.
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 13.31% on average over the next years. This is quite good.
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.
- 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
- A Price/Earnings ratio of 9.50 indicates a reasonable valuation of OMC.
- 82.42% 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 27.47, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.15, which indicates a very decent valuation of OMC.
- 74.73% 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 24.26, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OMC is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of OMC indicates a somewhat cheap valuation: OMC is cheaper than 62.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.18 | ||
| EV/EBITDA | 10.77 |
4.3 Compensation for Growth
- The 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)1.62
PEG (5Y)1.62
EPS Next 2Y10.24%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.96%, OMC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.28, OMC pays a better dividend. On top of this OMC pays more dividend than 86.81% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.87, 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 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.
- 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%
79.79
-1.05 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-02 2026-02-02/amc
Inst Owners75.69%
Inst Owner Change0.31%
Ins Owners0.77%
Ins Owner Change5.5%
Market Cap25.32B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts75.29
Price Target101.7 (27.46%)
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 | 9.5 | ||
| Fwd PE | 8.15 | ||
| P/S | 1.58 | ||
| P/FCF | 15.18 | ||
| P/OCF | 13.87 | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.77 |
EPS(TTM)8.4
EY10.53%
EPS(NY)9.8
Fwd EY12.28%
FCF(TTM)5.26
FCFY6.59%
OCF(TTM)5.75
OCFY7.21%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.62
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 | 2 |
F-Score6
WACC7.58%
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 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.