OMNICOM GROUP (OMC) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:OMC • US6819191064
77.04 USD
+1.27 (+1.68%)
At close: Jan 30, 2026
77.04 USD
0 (0%)
After Hours: 1/30/2026, 8:11:40 PM
OMC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 92 industry peers in the Media industry. While OMC has a great profitability rating, there are some minor concerns on its financial health. OMC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
- In the past 5 years OMC has always been profitable.
- In the past 5 years OMC always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 4.63%, OMC belongs to the best of the industry, outperforming 80.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 28.93%, OMC belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 14.29%, OMC belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for OMC is significantly above the industry average of 7.07%.
- 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 80.43% of its industry peers.
- OMC's Profit Margin has been stable in the last couple of years.
- OMC's Operating Margin of 15.00% is amongst the best of the industry. OMC outperforms 82.61% of its industry peers.
- In the last couple of years the Operating Margin of OMC has remained more or less at the same level.
- OMC has a Gross Margin of 26.90%. This is in the lower half of the industry: OMC underperforms 68.48% 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OMC is creating value.
- Compared to 1 year ago, OMC has less shares outstanding
- OMC has less shares outstanding than it did 5 years ago.
- OMC has a worse debt/assets ratio than last year.
2.2 Solvency
- OMC has an Altman-Z score of 1.96. 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 1.96, OMC is in the better half of the industry, outperforming 70.65% 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.
- OMC has a better Debt to FCF ratio (3.78) than 79.35% of its industry peers.
- 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 of 1.06. This is comparable to the rest of the industry: OMC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 1.96 |
ROIC/WACC1.89
WACC7.56%
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.
- The Current ratio of OMC (0.92) is worse than 61.96% of its industry peers.
- A Quick Ratio of 0.87 indicates that OMC may have some problems paying its short term obligations.
- OMC has a worse Quick ratio (0.87) than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.01% over the past year.
- Measured over the past 5 years, OMC shows a small growth in Earnings Per Share. The EPS has been growing by 5.87% on average per year.
- OMC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.13%.
- 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
- OMC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
- OMC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.31% yearly.
EPS Next Y5.96%
EPS Next 2Y11.28%
EPS Next 3Y12.84%
EPS Next 5Y5.4%
Revenue Next Year3.62%
Revenue Next 2Y20.47%
Revenue Next 3Y15.61%
Revenue Next 5Y13.31%
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 stable.
- 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
- The Price/Earnings ratio is 9.17, which indicates a very decent valuation of OMC.
- 83.70% of the companies in the same industry are more expensive than OMC, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, OMC is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.72 indicates a rather cheap valuation of OMC.
- 78.26% of the companies in the same industry are more expensive than OMC, based on the Price/Forward Earnings ratio.
- OMC is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OMC is valued a bit cheaper than 63.04% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, OMC is valued a bit cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.66 | ||
| EV/EBITDA | 10.16 |
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.
- OMC's earnings are expected to grow with 12.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)1.56
EPS Next 2Y11.28%
EPS Next 3Y12.84%
5. Dividend
5.1 Amount
- OMC has a Yearly Dividend Yield of 4.22%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.24, OMC pays a better dividend. On top of this OMC pays more dividend than 88.04% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, OMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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
- 41.26% of the earnings are spent on dividend by OMC. 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 2Y11.28%
EPS Next 3Y12.84%
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.
What is the valuation status of OMNICOM GROUP (OMC) stock?
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.
How financially healthy is OMNICOM GROUP?
The financial health rating of OMNICOM GROUP (OMC) is 4 / 10.
What is the earnings growth outlook for OMNICOM GROUP?
The Earnings per Share (EPS) of OMNICOM GROUP (OMC) is expected to grow by 5.96% in the next year.