ENXTPA:PUB

Stock Analysis Report

Publicis Groupe

Executive Summary

Publicis Groupe S.A. provides marketing, communication, and digital transformation services worldwide.


Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

How has Publicis Groupe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PUB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

PUB

0.3%

FR Media

-0.5%

FR Market


1 Year Return

-14.6%

PUB

-13.8%

FR Media

15.2%

FR Market

Return vs Industry: PUB matched the French Media industry which returned -13.8% over the past year.

Return vs Market: PUB underperformed the French Market which returned 15.2% over the past year.


Shareholder returns

PUBIndustryMarket
7 Day0.5%0.3%-0.5%
30 Day-0.4%-3.3%0.6%
90 Day5.2%-3.5%2.8%
1 Year-10.6%-14.6%-9.9%-13.8%19.2%15.2%
3 Year-27.2%-34.7%-18.2%-26.6%43.8%30.2%
5 Year-34.5%-43.6%-25.7%-37.5%52.3%30.8%

Price Volatility Vs. Market

How volatile is Publicis Groupe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Publicis Groupe undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PUB (€41.12) is trading below our estimate of fair value (€73.1)

Significantly Below Fair Value: PUB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PUB is good value based on its PE Ratio (11.5x) compared to the Media industry average (16.5x).

PE vs Market: PUB is good value based on its PE Ratio (11.5x) compared to the French market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PUB is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: PUB is good value based on its PB Ratio (1.3x) compared to the FR Media industry average (1.4x).


Next Steps

Future Growth

How is Publicis Groupe forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PUB's forecast earnings growth (9.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: PUB's earnings (9.1% per year) are forecast to grow slower than the French market (12.9% per year).

High Growth Earnings: PUB's earnings are forecast to grow, but not significantly.

Revenue vs Market: PUB's revenue (0.7% per year) is forecast to grow slower than the French market (4.6% per year).

High Growth Revenue: PUB's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PUB's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Publicis Groupe performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PUB has a large one-off loss of €366.0M impacting its December 31 2019 financial results.

Growing Profit Margin: PUB's current net profit margins (7.6%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: PUB's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: PUB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PUB had negative earnings growth (-8.5%) over the past year, making it difficult to compare to the Media industry average (4%).


Return on Equity

High ROE: PUB's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Publicis Groupe's financial position?


Financial Position Analysis

Short Term Liabilities: PUB's short term assets (€15.8B) do not cover its short term liabilities (€17.9B).

Long Term Liabilities: PUB's short term assets (€15.8B) exceed its long term liabilities (€7.3B).


Debt to Equity History and Analysis

Debt Level: PUB's debt to equity ratio (79.7%) is considered high.

Reducing Debt: PUB's debt to equity ratio has increased from 34.9% to 79.7% over the past 5 years.

Debt Coverage: PUB's debt is well covered by operating cash flow (39.8%).

Interest Coverage: PUB's interest payments on its debt are well covered by EBIT (100.7x coverage).


Balance Sheet

Inventory Level: PUB has a low level of unsold assets or inventory.

Debt Coverage by Assets: PUB's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Publicis Groupe's current dividend yield, its reliability and sustainability?

5.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PUB's dividend (5.59%) is higher than the bottom 25% of dividend payers in the French market (1.54%).

High Dividend: PUB's dividend (5.59%) is in the top 25% of dividend payers in the French market (4.58%)


Stability and Growth of Payments

Stable Dividend: PUB's dividends per share have been stable in the past 10 years.

Growing Dividend: PUB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.1%), PUB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PUB's dividends in 3 years are forecast to be well covered by earnings (47.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Arthur Sadoun (48yo)

2.7yrs

Tenure

€4,122,211

Compensation

Mr. Arthur Sadoun has been Chairman of Management Board and Chief Executive Officer of Publicis Groupe S.A. since June 1, 2017. Mr. Sadoun was Chief Executive Officer of Publicis Communication since 2015.  ...


CEO Compensation Analysis

Compensation vs Market: Arthur's total compensation ($USD4.48M) is above average for companies of similar size in the French market ($USD3.32M).

Compensation vs Earnings: Arthur's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Sadoun
Chairman of Management Board & CEO2.7yrs€4.12m0.023% 2.2m
Jean-Michel Etienne
Group CFO19.4yrs€2.66m0.040% 3.9m
Steve King
COO & CEO of Publicis Media1.1yrs€3.98m0.0071% 694.7k
Anne-Gabrielle Heilbronner
Secretary General & Member of Management Board5.4yrs€2.24m0.0029% 282.6k
Agathe Bousquet
President2.8yrsno datano data
Alessandra Girolami
Vice President of Investor Relations & Strategic Financial Planning0.9yrsno datano data
Céline Fronval
Group General Counsel2.8yrsno datano data
Delphine Stricker
VP & Director of Communication0.7yrsno datano data
Emmanuel Andre
Chief Talent Officer2.4yrsno datano data
Rishad Tobaccowala
Chief Growth Officer6.6yrsno datano data

2.7yrs

Average Tenure

50yo

Average Age

Experienced Management: PUB's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Susan Giannino
Chairman & Chief Executive Officer of Publicis Worldwide USA6.2yrsno datano data
Marie- Kravis
Member of the Supervisory Board9.7yrs€40.00k0.00021% 20.5k
Maurice Lévy
Chairman of Supervisory Board2.7yrs€2.85m1.97% 192.0m
André Kudelski
Member of Supervisory Board3.8yrs€60.00k0.00021% 20.5k
Élisabeth Badinter
Vice Chairman of Supervisory Board2.7yrs€55.00k7.05% 686.7m
Richard Stoddart
Chairman of Leo Burnett North America0yrsno datano data
Alex Saber
Chairman of Publicis Media0yrsno datano data
Tom Bernardin
Chairman of Leo Burnett0yrsno datano data
Elie Ohayon
Chairman of Saatchi & Saatchi Duke7.8yrsno datano data
Jean Charest
Member of the Supervisory Board6.8yrs€80.00k0.00059% 57.5k

6.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: PUB's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Publicis Groupe S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Publicis Groupe S.A.
  • Ticker: PUB
  • Exchange: ENXTPA
  • Founded: 1926
  • Industry: Advertising
  • Sector: Media
  • Market Cap: €9.744b
  • Shares outstanding: 236.96m
  • Website: https://www.publicisgroupe.com

Number of Employees


Location

  • Publicis Groupe S.A.
  • 133, Avenue des Champs-Élysées
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PGPE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
PUBENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1980
PU4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
0FQILSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
PUBPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
PUBSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1980
PUBWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
PUB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1980
PUBG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDSep 2000

Biography

Publicis Groupe S.A. provides marketing, communication, and digital transformation services worldwide. The company offers advertising; interactive communications and digital marketing; direct marketing and customer relationship management, sales, promotion and point-of-sale marketing; and public relation, corporate and financial communications, and events communication services. It also provides media consulting/media planning and media buying services. In addition, the company operates Publicis Sapient, a technological, digital, and consulting platform for the automotive, consumer products, energy and raw materials, retail, financial services, healthcare, media-telecoms, and travel and hospitality industries. Further, it provides healthcare communication services under the Digitas Health and Publicis Health Media brands for the healthcare and well-being sectors. The company serves clients in the non-food consumer products, finance, automobile, TMT, healthcare, food and beverage, leisure/energy/luxury, retail, and other sectors. Publicis Groupe S.A. was founded in 1926 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:36
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.