OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OMC - US6819191064 - Common Stock
73.44 USD
+3.27 (+4.66%)
73.44 USD
0 (0%)
Taking everything into account, OMC scores 6 out of 10 in our fundamental rating. OMC was compared to 98 industry peers in the Media industry. OMC has an excellent profitability rating, but there are concerns on its financial health. OMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past 5 years OMC has always been profitable.
Each year in the past 5 years OMC had a positive operating cash flow.
1.2 Ratios
OMC's Return On Assets of 4.63% is fine compared to the rest of the industry. OMC outperforms 76.53% of its industry peers.
Looking at the Return On Equity, with a value of 28.93%, OMC belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
OMC's Return On Invested Capital of 14.29% is amongst the best of the industry. OMC outperforms 93.88% 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 7.98%.
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 77.55% of its industry peers.
In the last couple of years the Profit Margin of OMC has remained more or less at the same level.
With an excellent Operating Margin value of 15.00%, OMC belongs to the best of the industry, outperforming 80.61% 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.
OMC's Gross Margin of 26.90% is on the low side compared to the rest of the industry. OMC is outperformed by 69.39% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OMC is creating value.
OMC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OMC has less shares outstanding
OMC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that OMC is in the distress zone and has some risk of bankruptcy.
OMC's Altman-Z score of 1.70 is fine compared to the rest of the industry. OMC outperforms 66.33% of its industry peers.
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.
OMC has a better Debt to FCF ratio (3.78) than 76.53% of its industry peers.
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 | 1.7 |
ROIC/WACC2.1
WACC6.79%
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 62.24% 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.
With a Quick ratio value of 0.87, OMC is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been growing slightly by 5.87% on average over the past years.
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
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 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 Year3.58%
Revenue Next 2Y3.43%
Revenue Next 3Y1.95%
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 8.74.
Compared to the rest of the industry, the Price/Earnings ratio of OMC indicates a rather cheap valuation: OMC is cheaper than 82.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OMC to the average of the S&P500 Index (26.46), we can say OMC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.76, the valuation of OMC can be described as very cheap.
OMC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OMC is cheaper than 79.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OMC to the average of the S&P500 Index (36.10), we can say OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OMC is valued cheaply inside the industry as 80.61% of the companies are valued more expensively.
75.51% of the companies in the same industry are more expensive than OMC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 6.2 |
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)1.18
PEG (5Y)1.49
EPS Next 2Y8.33%
EPS Next 3Y8.59%
5. Dividend
5.1 Amount
OMC has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 4.50, OMC pays a better dividend. On top of this OMC pays more dividend than 86.73% of the companies listed in the same industry.
OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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 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
41.26% of the earnings are spent on dividend by OMC. This is a bit on the high side, but may be sustainable.
OMC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.26%
EPS Next 2Y8.33%
EPS Next 3Y8.59%
73.44
+3.27 (+4.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners71.86%
Inst Owner Change1.68%
Ins Owners0.76%
Ins Owner Change5.79%
Market Cap23.31B
Revenue(TTM)16.07B
Net Income(TTM)1.33B
Analysts76.25
Price Target101.98 (38.86%)
Short Float %15.07%
Short Ratio6.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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)0.88%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)0.3%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.74 | ||
| Fwd PE | 7.76 | ||
| P/S | 0.88 | ||
| P/FCF | 8.5 | ||
| P/OCF | 7.76 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.2 |
EPS(TTM)8.4
EY11.44%
EPS(NY)9.46
Fwd EY12.88%
FCF(TTM)8.64
FCFY11.77%
OCF(TTM)9.46
OCFY12.88%
SpS83.25
BVpS23.91
TBVpS-35.19
PEG (NY)1.18
PEG (5Y)1.49
Graham Number67.22
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 | 1.7 |
F-Score6
WACC6.79%
ROIC/WACC2.1
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 Year3.58%
Revenue Next 2Y3.43%
Revenue Next 3Y1.95%
Revenue Next 5Y2.2%
EBIT growth 1Y4.4%
EBIT growth 3Y3.01%
EBIT growth 5Y2.04%
EBIT Next Year13.31%
EBIT Next 3Y11.29%
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 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 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%.