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IPG

Interpublic Group of CompaniesNYSE:IPG Stock Report

Market Cap

US$14.2b

7D

-5.3%

1Y

90.3%

Updated

25 Oct, 2021

Data

Company Financials +
IPG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

IPG Overview

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide.

Interpublic Group of Companies Competitors

Omnicom Group

NYSE:OMC

US$14.9b

Stagwell

NasdaqGS:STGW

US$2.4b

CMG Holdings Group

OTCPK:CMGO

US$4.6m

Mastermind

OTCPK:MMND

US$2.6m

Price History & Performance

Summary of all time highs, changes and price drops for Interpublic Group of Companies
Historical stock prices
Current Share PriceUS$36.15
52 Week HighUS$17.57
52 Week LowUS$39.35
Beta1.03
1 Month Change-7.02%
3 Month Change2.29%
1 Year Change90.26%
3 Year Change57.45%
5 Year Change61.46%
Change since IPO559.77%

Recent News & Updates

Sep 26
Should You Investigate The Interpublic Group of Companies, Inc. (NYSE:IPG) At US$38.88?

Should You Investigate The Interpublic Group of Companies, Inc. (NYSE:IPG) At US$38.88?

The Interpublic Group of Companies, Inc. ( NYSE:IPG ) received a lot of attention from a substantial price increase on...

Sep 11
Here's Why Interpublic Group of Companies (NYSE:IPG) Can Manage Its Debt Responsibly

Here's Why Interpublic Group of Companies (NYSE:IPG) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 14
Estimating The Fair Value Of The Interpublic Group of Companies, Inc. (NYSE:IPG)

Estimating The Fair Value Of The Interpublic Group of Companies, Inc. (NYSE:IPG)

Does the August share price for The Interpublic Group of Companies, Inc. ( NYSE:IPG ) reflect what it's really worth...

Shareholder Returns

IPGUS MediaUS Market
7D-5.3%1.3%1.9%
1Y90.3%32.1%33.4%

Return vs Industry: IPG exceeded the US Media industry which returned 28.9% over the past year.

Return vs Market: IPG exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is IPG's price volatile compared to industry and market?
IPG volatility
IPG Beta1.03
Industry Beta1.16
Market Beta1

Stable Share Price: IPG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IPG's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190252,800Philippe Krakowskyhttps://www.interpublic.com

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in two segments, Integrated Agency Networks (IAN) and IPG DXTRA. The company offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines, as well as data management services.

Interpublic Group of Companies Fundamentals Summary

How do Interpublic Group of Companies's earnings and revenue compare to its market cap?
IPG fundamental statistics
Market CapUS$14.23b
Earnings (TTM)US$707.20m
Revenue (TTM)US$8.84b

20.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IPG income statement (TTM)
RevenueUS$8.84b
Cost of RevenueUS$6.68b
Gross ProfitUS$2.17b
ExpensesUS$1.46b
EarningsUS$707.20m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.80
Gross Margin24.48%
Net Profit Margin8.00%
Debt/Equity Ratio160.7%

How did IPG perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

59%

Payout Ratio

Valuation

Is Interpublic Group of Companies undervalued compared to its fair value and its price relative to the market?

37.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPG ($36.15) is trading below our estimate of fair value ($57.5)

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


Price To Earnings Ratio

PE vs Industry: IPG is poor value based on its PE Ratio (20.1x) compared to the US Media industry average (15.1x).

PE vs Market: IPG is poor value based on its PE Ratio (20.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: IPG is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: IPG is overvalued based on its PB Ratio (4.6x) compared to the US Media industry average (2.2x).


Future Growth

How is Interpublic Group of Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPG's forecast earnings growth (11.8% per year) is above the savings rate (2%).

Earnings vs Market: IPG's earnings (11.8% per year) are forecast to grow slower than the US market (14.7% per year).

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

Revenue vs Market: IPG's revenue (3.2% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: IPG's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPG's Return on Equity is forecast to be high in 3 years time (23%)


Past Performance

How has Interpublic Group of Companies performed over the past 5 years?

0.07%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPG has a large one-off loss of $353.2M impacting its September 30 2021 financial results.

Growing Profit Margin: IPG's current net profit margins (8%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: IPG's earnings have grown by 0.07% per year over the past 5 years.

Accelerating Growth: IPG's earnings growth over the past year (24.6%) exceeds its 5-year average (0.07% per year).

Earnings vs Industry: IPG earnings growth over the past year (24.6%) underperformed the Media industry 96.3%.


Return on Equity

High ROE: Whilst IPG's Return on Equity (22.67%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Interpublic Group of Companies's financial position?


Financial Position Analysis

Short Term Liabilities: IPG's short term assets ($8.8B) do not cover its short term liabilities ($8.8B).

Long Term Liabilities: IPG's short term assets ($8.8B) exceed its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: IPG's debt to equity ratio (160.7%) is considered high.

Reducing Debt: IPG's debt to equity ratio has increased from 78.3% to 160.7% over the past 5 years.

Debt Coverage: IPG's debt is well covered by operating cash flow (41.7%).

Interest Coverage: IPG's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Dividend

What is Interpublic Group of Companies's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPG's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: IPG's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.1%), IPG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IPG's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Philippe Krakowsky (58 yo)

0.75

Tenure

US$8,854,012

Compensation

Mr. Philippe Krakowsky has been Chief Executive Officer and Director of Interpublic Group of Companies since January 1, 2021. He served as the Chief Operating Officer of Interpublic Group of Companies sinc...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD8.85M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Philippe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IPG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: IPG's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IPG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Interpublic Group of Companies, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: The Interpublic Group of Companies, Inc.
  • Ticker: IPG
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$14.229b
  • Shares outstanding: 393.62m
  • Website: https://www.interpublic.com

Number of Employees


Location

  • The Interpublic Group of Companies, Inc.
  • 909 Third Avenue
  • New York
  • New York
  • 10022
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:09
End of Day Share Price2021/10/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.