OMNICOM GROUP (OMC) Fundamental Analysis & Valuation
NYSE:OMC • US6819191064
85.8 USD
+1.18 (+1.39%)
At close: Mar 4, 2026
85.8 USD
0 (0%)
After Hours: 3/4/2026, 5:48:10 PM
This OMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 5 out of 10 to OMC. OMC was compared to 91 industry peers in the Media industry. While OMC is still in line with the averages on profitability rating, there are concerns on its financial health. OMC may be a bit undervalued, certainly considering the very reasonable score on growth Finally OMC also has an excellent dividend rating.
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.
- Of the past 5 years OMC 4 years were profitable.
- OMC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.63%, OMC belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- OMC has a better Return On Equity (28.93%) than 96.70% of its industry peers.
- OMC has a Return On Invested Capital of 15.33%. This is amongst the best in the industry. OMC outperforms 97.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROIC | 15.33% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- OMC has a better Profit Margin (8.31%) than 83.52% of its industry peers.
- With an excellent Operating Margin value of 15.00%, OMC belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
- OMC's Operating Margin has improved in the last couple of years.
- The Gross Margin of OMC (26.90%) is worse than 67.03% of its industry peers.
- 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-0.88%
OM growth 5Y2.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y0.21%
2. OMC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OMC is creating value.
- There is no outstanding debt for OMC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- OMC has an Altman-Z score of 2.02. 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.
- With a decent Altman-Z score value of 2.02, OMC is doing good in the industry, outperforming 69.23% 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.
- The Debt to FCF ratio of OMC (3.78) is better than 79.12% 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's Debt to Equity ratio of 1.06 is in line compared to the rest of the industry. OMC outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 2.02 |
ROIC/WACC2.04
WACC7.5%
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 64.84% 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.
- OMC has a worse Quick ratio (0.87) than 65.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.87 |
3. OMC Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.45% over the past year.
- OMC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.41% yearly.
- OMC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.09%.
- The Revenue has been growing slightly by 5.57% on average over the past years.
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 small growth in Earnings Per Share. The EPS will grow by 5.82% on average per year.
- Based on estimates for the next years, OMC will show a quite strong growth in Revenue. The Revenue will grow by 13.29% on average per year.
EPS Next Y16.65%
EPS Next 2Y17.37%
EPS Next 3Y9.65%
EPS Next 5Y5.82%
Revenue Next Year63.06%
Revenue Next 2Y29.97%
Revenue Next 3Y3.01%
Revenue Next 5Y13.3%
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 decreasing.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. OMC Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 10.00 indicates a reasonable valuation of OMC.
- OMC's Price/Earnings ratio is rather cheap when compared to the industry. OMC is cheaper than 83.52% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.03, OMC is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.57, which indicates a very decent valuation of OMC.
- Based on the Price/Forward Earnings ratio, OMC is valued a bit cheaper than 76.92% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.11, OMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
- OMC's Enterprise Value to EBITDA is on the same level as the industry average.
- 61.54% 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 | 16.18 | ||
| EV/EBITDA | 11.13 |
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.
- OMC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.6
PEG (5Y)0.96
EPS Next 2Y17.37%
EPS Next 3Y9.65%
5. OMC Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, OMC has a reasonable but not impressive dividend return.
- OMC's Dividend Yield is rather good when compared to the industry average which is at 1.07. OMC pays more dividend than 87.91% of the companies in the same industry.
- OMC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
- OMC pays out 41.26% of its income as dividend. 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 2Y17.37%
EPS Next 3Y9.65%
OMC Fundamentals: All Metrics, Ratios and Statistics
85.8
+1.18 (+1.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-18 2026-02-18/amc
Earnings (Next)04-13 2026-04-13/amc
Inst Owners75.69%
Inst Owner Change38.21%
Ins Owners0.77%
Ins Owner Change5.87%
Market Cap26.99B
Revenue(TTM)17.27B
Net Income(TTM)1.33B
Analysts74.12
Price Target100.75 (17.42%)
Short Float %8.42%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend2.8
Dividend Growth(5Y)1.83%
DP41.26%
Div Incr Years0
Div Non Decr Years34
Ex-Date03-11 2026-03-11 (0.8)
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)-0.93%
PT rev (3m)-1.2%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.27%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)11.78%
Revenue NQ rev (3m)11.63%
Revenue NY rev (1m)16.4%
Revenue NY rev (3m)57.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.57 | ||
| P/S | 1.68 | ||
| P/FCF | 16.18 | ||
| P/OCF | 14.78 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.13 |
EPS(TTM)8.58
EY10%
EPS(NY)10.01
Fwd EY11.66%
FCF(TTM)5.3
FCFY6.18%
OCF(TTM)5.8
OCFY6.76%
SpS51.07
BVpS14.66
TBVpS-21.59
PEG (NY)0.6
PEG (5Y)0.96
Graham Number53.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 28.93% | ||
| ROCE | 19.44% | ||
| ROIC | 15.33% | ||
| ROICexc | 21.12% | ||
| ROICexgc | N/A | ||
| OM | 15% | ||
| PM (TTM) | 8.31% | ||
| GM | 26.9% | ||
| FCFM | 10.38% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-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 | 2.02 |
F-Score6
WACC7.5%
ROIC/WACC2.04
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 Y16.65%
EPS Next 2Y17.37%
EPS Next 3Y9.65%
EPS Next 5Y5.82%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y6.52%
Revenue growth 5Y5.57%
Sales Q2Q%27.92%
Revenue Next Year63.06%
Revenue Next 2Y29.97%
Revenue Next 3Y3.01%
Revenue Next 5Y13.3%
EBIT growth 1Y4.4%
EBIT growth 3Y5.59%
EBIT growth 5Y7.88%
EBIT Next Year117.64%
EBIT Next 3Y37.11%
EBIT Next 5Y14.32%
FCF growth 1Y11.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.44%
OCF growth 3YN/A
OCF growth 5YN/A
OMNICOM GROUP / OMC FAQ
What is the ChartMill fundamental rating of OMNICOM GROUP (OMC) stock?
ChartMill assigns a fundamental rating of 5 / 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 6 / 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 16.65% in the next year.