OMNICOM GROUP (OMC) Fundamental Analysis & Valuation

NYSE:OMC • US6819191064

Current stock price

75.45 USD
+0.06 (+0.08%)
Last:

This OMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. OMC Profitability Analysis

1.1 Basic Checks

  • In the past year OMC was profitable.
  • In the past year OMC had a positive cash flow from operations.
  • OMC had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years OMC had a positive operating cash flow.
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

  • With a decent Return On Assets value of -0.10%, OMC is doing good in the industry, outperforming 69.57% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -0.45%, OMC is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
  • The Return On Invested Capital of OMC (8.19%) is better than 86.96% 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 6.70%.
  • 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

  • With an excellent Operating Margin value of 14.97%, OMC belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • In the last couple of years the Operating Margin of OMC has grown nicely.
  • The Gross Margin of OMC (26.79%) is worse than 64.13% of its industry peers.
  • OMC's Gross Margin has been stable in the last couple of years.
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
  • The debt/assets ratio for OMC has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of 1.04, we must say that OMC is in the distress zone and has some risk of bankruptcy.
  • OMC has a Altman-Z score (1.04) which is in line with its industry peers.
  • The Debt to FCF ratio of OMC is 3.27, which is a good value as it means it would take OMC, 3.27 years of fcf income to pay off all of its debts.
  • OMC has a Debt to FCF ratio of 3.27. This is amongst the best in the industry. OMC outperforms 82.61% of its industry peers.
  • A Debt/Equity ratio of 0.64 indicates that OMC is somewhat dependend on debt financing.
  • The Debt to Equity ratio of OMC (0.64) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.27
Altman-Z 1.04
ROIC/WACC1.13
WACC7.23%
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.
  • OMC has a worse Current ratio (0.93) than 65.22% of its industry peers.
  • A Quick Ratio of 0.86 indicates that OMC may have some problems paying its short term obligations.
  • OMC has a Quick ratio of 0.86. This is in the lower half of the industry: OMC underperforms 65.22% 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%.
  • Measured over the past years, OMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.41% on average per year.
  • Looking at the last year, OMC shows a quite strong growth in Revenue. The Revenue has grown by 10.09% in the last year.
  • OMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
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.
  • OMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.76% yearly.
EPS Next Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue Next Year51.02%
Revenue Next 2Y23.54%
Revenue Next 3Y16.66%
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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8

4. OMC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.79 indicates a reasonable 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 86.96% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.50, OMC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.85 indicates a rather cheap valuation of OMC.
  • Based on the Price/Forward Earnings ratio, OMC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, OMC is valued rather cheaply.
Industry RankSector Rank
PE 8.79
Fwd PE 6.85
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

  • 68.48% of the companies in the same industry are more expensive than OMC, based on the Enterprise Value to EBITDA ratio.
  • OMC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OMC is cheaper than 78.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.4
EV/EBITDA 8.93
OMC Per share dataOMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40

4.3 Compensation for Growth

  • The 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 20.37% in the coming years.
PEG (NY)0.31
PEG (5Y)0.84
EPS Next 2Y23.19%
EPS Next 3Y20.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. OMC Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.22%, OMC is a good candidate for dividend investing.
  • OMC's Dividend Yield is rather good when compared to the industry average which is at 1.22. OMC pays more dividend than 88.04% of the companies in the same industry.
  • OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.22%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-3.7%
Div Incr Years0
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

  • The earnings of OMC are negative and hence is the payout ratio. OMC will probably not be able to sustain this dividend level.
DP-1008.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
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 (3/25/2026, 1:13:07 PM)

75.45

+0.06 (+0.08%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18
Earnings (Next)04-13
Inst Owners102.71%
Inst Owner Change38.43%
Ins Owners0.79%
Ins Owner Change7.72%
Market Cap23.42B
Revenue(TTM)17.27B
Net Income(TTM)-54.50M
Analysts74.12
Price Target100.75 (33.53%)
Short Float %15.22%
Short Ratio9.37
Dividend
Industry RankSector Rank
Dividend Yield 4.22%
Yearly Dividend2.16
Dividend Growth(5Y)-3.7%
DP-1008.44%
Div Incr Years0
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)-1.1%
PT rev (3m)-1.2%
EPS NQ rev (1m)4.5%
EPS NQ rev (3m)5.23%
EPS NY rev (1m)10.11%
EPS NY rev (3m)16.51%
Revenue NQ rev (1m)11.84%
Revenue NQ rev (3m)11.84%
Revenue NY rev (1m)-6.48%
Revenue NY rev (3m)47.37%
Valuation
Industry RankSector Rank
PE 8.79
Fwd PE 6.85
P/S 1.36
P/FCF 8.4
P/OCF 7.97
P/B 1.94
P/tB N/A
EV/EBITDA 8.93
EPS(TTM)8.58
EY11.37%
EPS(NY)11.02
Fwd EY14.61%
FCF(TTM)8.98
FCFY11.91%
OCF(TTM)9.47
OCFY12.55%
SpS55.65
BVpS38.81
TBVpS-37.69
PEG (NY)0.31
PEG (5Y)0.84
Graham Number86.56
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 1.04
F-Score4
WACC7.23%
ROIC/WACC1.13
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 Y28.44%
EPS Next 2Y23.19%
EPS Next 3Y20.37%
EPS Next 5Y14.25%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year51.02%
Revenue Next 2Y23.54%
Revenue Next 3Y16.66%
Revenue Next 5Y11.76%
EBIT growth 1Y10.19%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year122.46%
EBIT Next 3Y37.11%
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 8 / 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 7 / 10.


How financially healthy is OMNICOM GROUP?

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


What is the earnings growth outlook for OMNICOM GROUP?

The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 28.44% in the next year.