OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
80.47 USD
+0.44 (+0.55%)
80.47 USD
0 (0%)
Taking everything into account, OMC scores 6 out of 10 in our fundamental rating. OMC was compared to 95 industry peers in the Media industry. OMC has an excellent profitability rating, but there are some minor concerns on its financial health. OMC has a correct valuation and a medium growth rate. OMC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year OMC was profitable.
OMC had a positive operating cash flow in the past year.
Each year in the past 5 years OMC has been profitable.
In the past 5 years OMC always reported a positive cash flow from operatings.
1.2 Ratios
OMC has a better Return On Assets (4.63%) than 77.89% of its industry peers.
With an excellent Return On Equity value of 28.93%, OMC belongs to the best of the industry, outperforming 96.84% of the companies in the same industry.
OMC has a Return On Invested Capital of 14.29%. This is amongst the best in the industry. OMC outperforms 94.74% 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 7.09%.
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
The Profit Margin of OMC (8.31%) is better than 78.95% of its industry peers.
In the last couple of years the Profit Margin of OMC has remained more or less at the same level.
OMC has a better Operating Margin (15.00%) than 81.05% of its industry peers.
OMC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 26.90%, OMC is doing worse than 70.53% 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 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.
OMC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OMC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that OMC is not a great score, but indicates 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 70.53% 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.
With a decent Debt to FCF ratio value of 3.78, OMC is doing good in the industry, outperforming 77.89% of the companies in the same industry.
OMC has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external 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
A Current Ratio of 0.92 indicates that OMC may have some problems paying its short term obligations.
The Current ratio of OMC (0.92) is worse than 63.16% of its industry peers.
A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
OMC's Quick ratio of 0.87 is on the low side compared to the rest of the industry. OMC is outperformed by 65.26% 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.
The Revenue has been growing slightly by 0.96% on average over the past years.
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.
Based on estimates for the next years, OMC will show a small growth in Revenue. The Revenue will grow by 2.20% 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 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
OMC is valuated reasonably with a Price/Earnings ratio of 9.58.
Based on the Price/Earnings ratio, OMC is valued a bit cheaper than 80.00% of the companies in the same industry.
OMC is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.21, the valuation of OMC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than 74.74% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. OMC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.21 |
4.2 Price Multiples
OMC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than the industry average as 62.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.31 | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
OMC's 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)1.64
PEG (5Y)1.63
EPS Next 2Y10.24%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.00%, 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 88.42% of the companies in the same industry.
OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
80.47
+0.44 (+0.55%)
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 Cap25.54B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price Target102.63 (27.54%)
Short Float %9.59%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4% |
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)0.64%
PT rev (3m)5.24%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)0.77%
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)0.04%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.58 | ||
| Fwd PE | 8.21 | ||
| P/S | 1.59 | ||
| P/FCF | 15.31 | ||
| P/OCF | 13.99 | ||
| P/B | 5.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.67 |
EPS(TTM)8.4
EY10.44%
EPS(NY)9.8
Fwd EY12.17%
FCF(TTM)5.26
FCFY6.53%
OCF(TTM)5.75
OCFY7.15%
SpS50.62
BVpS14.54
TBVpS-21.4
PEG (NY)1.64
PEG (5Y)1.63
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 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 5Y2.2%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year20.88%
EBIT Next 3Y19.42%
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 6 / 10 to OMNICOM GROUP (OMC). This can be considered as Fairly Valued.
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 5.85% 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%.