OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
79.87 USD
-0.08 (-0.1%)
Overall OMC gets a fundamental rating of 6 out of 10. We evaluated OMC against 94 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.
OMC had a positive operating cash flow in each of the past 5 years.
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 78.72% of the companies in the same industry.
OMC's Return On Equity of 28.93% is amongst the best of the industry. OMC outperforms 96.81% of its industry peers.
OMC's Return On Invested Capital of 14.29% is amongst the best of the industry. OMC outperforms 94.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OMC is significantly above the industry average of 7.16%.
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's Profit Margin of 8.31% is fine compared to the rest of the industry. OMC outperforms 78.72% of its industry peers.
OMC's Profit Margin has been stable in the last couple of years.
The Operating Margin of OMC (15.00%) is better than 81.91% 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 70.21% 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.
Compared to 5 years ago, OMC has less shares outstanding
The debt/assets ratio for OMC is higher compared to a year ago.
2.2 Solvency
OMC has an Altman-Z score of 1.99. 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.
Looking at the Altman-Z score, with a value of 1.99, OMC is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
OMC has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as OMC would need 3.78 years to pay back of 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 77.66% 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.
OMC has a Debt to Equity ratio (1.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.9
WACC7.51%
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.
With a Current ratio value of 0.92, OMC is not doing good in the industry: 63.83% of the companies in the same industry are doing better.
OMC has a Quick 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.
OMC has a Quick ratio of 0.87. This is in the lower half of the industry: OMC underperforms 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.01%.
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.
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
The Earnings Per Share is expected to grow by 5.40% on average over the next years.
The Revenue is expected to grow by 2.20% on average over the next years.
EPS Next Y7.42%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
EPS Next 5Y5.4%
Revenue Next Year3.63%
Revenue Next 2Y3.54%
Revenue Next 3Y4.71%
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
Based on the Price/Earnings ratio of 9.51, the valuation of OMC can be described as reasonable.
Based on the Price/Earnings ratio, OMC is valued cheaper than 80.85% of the companies in the same industry.
OMC is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.44 indicates a reasonable valuation of OMC.
Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than 76.60% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA ratio is in line with the industry average.
OMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OMC is cheaper than 62.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
The 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)1.28
PEG (5Y)1.62
EPS Next 2Y8.33%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, OMC has a reasonable but not impressive dividend return.
OMC's Dividend Yield is rather good when compared to the industry average which is at 1.22. OMC pays more dividend than 88.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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 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 2Y8.33%
EPS Next 3Y8.59%
NYSE:OMC (12/26/2025, 10:27:57 AM)
79.87
-0.08 (-0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners71.86%
Inst Owner Change1.71%
Ins Owners0.76%
Ins Owner Change5.79%
Market Cap25.35B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price TargetN/A
Short Float %9.59%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend2.8
Dividend Growth(5Y)1.83%
DP41.26%
Div Incr Years0
Div Non Decr Years34
Ex-Date
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)-0.27%
PT rev (3m)4.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.51 | ||
| Fwd PE | 8.44 | ||
| P/S | 1.58 | ||
| P/FCF | 15.19 | ||
| P/OCF | 13.88 | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.66 |
EPS(TTM)8.4
EY10.52%
EPS(NY)9.46
Fwd EY11.84%
FCF(TTM)5.26
FCFY6.58%
OCF(TTM)5.75
OCFY7.2%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.28
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 | 1.99 |
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 Y7.42%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
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 2Y3.54%
Revenue Next 3Y4.71%
Revenue Next 5Y2.2%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year14.2%
EBIT Next 3Y8.71%
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.
Can you provide the valuation status for OMNICOM GROUP?
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.
What is the earnings growth outlook for OMNICOM GROUP?
The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 7.42% in the next year.
How sustainable is the dividend of OMNICOM GROUP (OMC) stock?
The dividend rating of OMNICOM GROUP (OMC) is 8 / 10 and the dividend payout ratio is 41.26%.