OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

78.5 USD
-0.17 (-0.22%)
At close:
78.5 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.

6

1. OMC Profitability Analysis

1.1 Basic Checks

  • In the past year OMC was profitable.
  • OMC had a positive operating cash flow in the past year.
  • OMC had positive earnings in 4 of the past 5 years.
  • OMC had a positive operating cash flow in each of the past 5 years.
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 68.89% of its industry peers.
  • The Return On Equity of OMC (-0.45%) is better than 70.00% of its industry peers.
  • OMC has a better Return On Invested Capital (8.19%) than 86.67% of its industry peers.
  • OMC had an Average Return On Invested Capital over the past 3 years of 12.34%. This is above the industry average of 7.63%.
  • The 3 year average ROIC (12.34%) for OMC is well above the current ROIC(8.19%). The reason for the recent decline needs to be investigated.
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

  • OMC has a Operating Margin of 14.97%. This is amongst the best in the industry. OMC outperforms 82.22% of its industry peers.
  • OMC's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 26.79%, OMC is doing worse than 64.44% of the companies in the same industry.
  • In the last couple of years the Gross Margin of OMC has remained more or less at the same level.
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.
  • OMC has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, OMC has more shares outstanding
  • Compared to 1 year ago, OMC has an improved debt to assets ratio.
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 1.02. This is a bad value and indicates that OMC is not financially healthy and even has some risk of bankruptcy.
  • OMC's Altman-Z score of 1.02 is in line compared to the rest of the industry. OMC outperforms 55.56% of its industry peers.
  • 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 has a Debt to FCF ratio of 3.27. This is amongst the best in the industry. OMC outperforms 81.11% of its industry peers.
  • A Debt/Equity ratio of 0.64 indicates that OMC is somewhat dependend on debt financing.
  • OMC's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. OMC outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.02
ROIC/WACC1.02
WACC8.01%
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

  • A Current Ratio of 0.93 indicates that OMC may have some problems paying its short term obligations.
  • With a Current ratio value of 0.93, OMC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.86 indicates that OMC may have some problems paying its short term obligations.
  • OMC's Quick ratio of 0.86 is on the low side compared to the rest of the industry. OMC is outperformed by 64.44% of its industry peers.
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

  • OMC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
  • The Earnings Per Share has been growing by 10.41% on average over the past years. This is quite good.
  • Looking at the last year, OMC shows a quite strong growth in Revenue. The Revenue has grown by 10.09% in the last year.
  • Measured over the past years, OMC shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
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

  • Based on estimates for the next years, OMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.25% on average per year.
  • The Revenue is expected to grow by 11.76% on average over the next years. This is quite good.
EPS Next Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
Revenue Next 5Y11.76%

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 accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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9

4. OMC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.15, the valuation of OMC can be described as reasonable.
  • OMC's Price/Earnings ratio is rather cheap when compared to the industry. OMC is cheaper than 85.56% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.89. OMC is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 7.15, which indicates a rather cheap valuation of OMC.
  • 84.44% 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 38.50, OMC is valued rather cheaply.
Industry RankSector Rank
PE 9.15
Fwd PE 7.15
OMC Price Earnings VS Forward Price EarningsOMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, OMC is valued a bit cheaper than the industry average as 71.11% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, OMC is valued cheaper than 82.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.02
EV/EBITDA 8.59
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

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.
  • The decent profitability rating of OMC may justify a higher PE ratio.
  • A more expensive valuation may be justified as OMC's earnings are expected to grow with 18.74% in the coming years.
PEG (NY)0.33
PEG (5Y)0.88
EPS Next 2Y21.09%
EPS Next 3Y18.74%

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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 4.06%, which is a nice return.
  • OMC's Dividend Yield is rather good when compared to the industry average which is at 1.05. OMC pays more dividend than 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, OMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.06%

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 Years1
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

  • OMC has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-1008.44%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
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 (4/20/2026, 4:15:00 PM)

After market: 78.5 0 (0%)

78.5

-0.17 (-0.22%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-28
Inst Owners111.89%
Inst Owner Change0.14%
Ins Owners0.86%
Ins Owner Change12.48%
Market Cap22.37B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target100.82 (28.43%)
Short Float %12.04%
Short Ratio6.1
Dividend
Industry RankSector Rank
Dividend Yield 4.06%
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP-1008.44%
Div Incr Years1
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)0.07%
PT rev (3m)-0.87%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)4.9%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)12.02%
Revenue NQ rev (1m)4.21%
Revenue NQ rev (3m)16.54%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)23.64%
Valuation
Industry RankSector Rank
PE 9.15
Fwd PE 7.15
P/S 1.3
P/FCF 8.02
P/OCF 7.61
P/B 1.86
P/tB N/A
EV/EBITDA 8.59
EPS(TTM)8.58
EY10.93%
EPS(NY)10.97
Fwd EY13.98%
FCF(TTM)9.78
FCFY12.46%
OCF(TTM)10.31
OCFY13.13%
SpS60.61
BVpS42.27
TBVpS-41.04
PEG (NY)0.33
PEG (5Y)0.88
Graham Number90.3312 (15.07%)
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 1.02
F-Score4
WACC8.01%
ROIC/WACC1.02
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 Y27.89%
EPS Next 2Y21.09%
EPS Next 3Y18.74%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year53.08%
Revenue Next 2Y24.02%
Revenue Next 3Y16.84%
Revenue Next 5Y11.76%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year118.85%
EBIT Next 3Y35.82%
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 9 / 10 to OMNICOM GROUP (OMC). This can be considered as Undervalued.


What is the profitability of OMC stock?

OMNICOM GROUP (OMC) has a profitability rating of 6 / 10.


Can you provide the financial health for OMC stock?

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


What is the expected EPS growth for OMNICOM GROUP (OMC) stock?

The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 27.89% in the next year.