Interpublic Group of Companies
Market Cap
US$7.3b
Last Updated
2020/10/21 23:41 UTC
Data Sources
Company Financials +
Executive Summary
The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer and undervalued.
Similar Companies
Share Price & News
How has Interpublic Group of Companies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IPG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.5%
IPG
-2.4%
US Media
-1.4%
US Market
1 Year Return
-12.6%
IPG
2.2%
US Media
17.8%
US Market
Return vs Industry: IPG underperformed the US Media industry which returned 1.3% over the past year.
Return vs Market: IPG underperformed the US Market which returned 18.5% over the past year.
Shareholder returns
| IPG | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | -2.4% | -1.4% |
| 30 Day | 10.5% | -1.5% | 4.7% |
| 90 Day | 1.3% | 4.1% | 8.2% |
| 1 Year | -8.1%-12.6% | 3.8%2.2% | 20.5%17.8% |
| 3 Year | 9.1%-4.1% | 22.8%17.6% | 42.2%32.7% |
| 5 Year | -1.1%-17.7% | 44.0%33.7% | 83.4%62.7% |
Price Volatility Vs. Market
How volatile is Interpublic Group of Companies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is The Interpublic Group of Companies, Inc.'s (NYSE:IPG) 18% ROE Better Than Average?3 weeks ago | Simply Wall St
Does Interpublic Group of Companies's (NYSE:IPG) Statutory Profit Adequately Reflect Its Underlying Profit?1 month ago | Simply Wall St
It's A Story Of Risk Vs Reward With The Interpublic Group of Companies, Inc. (NYSE:IPG)Valuation
Is Interpublic Group of Companies undervalued compared to its fair value and its price relative to the market?
41.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: IPG ($18.7) is trading below our estimate of fair value ($31.93)
Significantly Below Fair Value: IPG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: IPG is good value based on its PE Ratio (16x) compared to the US Media industry average (16.3x).
PE vs Market: IPG is good value based on its PE Ratio (16x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: IPG is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: IPG is overvalued based on its PB Ratio (3x) compared to the US Media industry average (1.3x).
Next Steps
Future Growth
How is Interpublic Group of Companies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
35.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IPG's forecast earnings growth (35.3% per year) is above the savings rate (2.2%).
Earnings vs Market: IPG's earnings (35.3% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IPG's revenue (2.8% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: IPG's revenue (2.8% 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 (25%)
Next Steps
Past Performance
How has Interpublic Group of Companies performed over the past 5 years?
4.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IPG has a large one-off loss of $187.6M impacting its September 30 2020 financial results.
Growing Profit Margin: IPG's current net profit margins (5.5%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: IPG's earnings have grown by 4.4% per year over the past 5 years.
Accelerating Growth: IPG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IPG had negative earnings growth (-30.1%) over the past year, making it difficult to compare to the Media industry average (-15.7%).
Return on Equity
High ROE: IPG's Return on Equity (17.7%) is considered low.
Next Steps
Financial Health
How is Interpublic Group of Companies's financial position?
Financial Position Analysis
Short Term Liabilities: IPG's short term assets ($6.2B) do not cover its short term liabilities ($6.4B).
Long Term Liabilities: IPG's short term assets ($6.2B) exceed its long term liabilities ($5.9B).
Debt to Equity History and Analysis
Debt Level: IPG's debt to equity ratio (149.9%) is considered high.
Reducing Debt: IPG's debt to equity ratio has increased from 79.5% to 149.9% over the past 5 years.
Debt Coverage: IPG's debt is well covered by operating cash flow (24.4%).
Interest Coverage: IPG's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Interpublic Group of Companies's current dividend yield, its reliability and sustainability?
5.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IPG's dividend (5.45%) is higher than the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: IPG's dividend (5.45%) is in the top 25% of dividend payers in the US market (4.68%)
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: At its current payout ratio (83.8%), IPG's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IPG's dividends in 3 years are forecast to be covered by earnings (54.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
11.6yrs
Average management tenure
CEO
Michael Roth (75 yo)
15.75yrs
Tenure
US$16,590,172
Compensation
Mr. Michael Isor Roth, also known as Michael, serves as the Chief Executive Officer of The Interpublic Group of Companies, Inc since January 19, 2005. Mr. Roth has been Chairman and Director of The Interpu ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD16.59M) is above average for companies of similar size in the US market ($USD7.32M).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.75yrs | US$16.59m | 0.31% $ 22.4m | |
| Executive VP & CFO | 0.75yr | US$1.92m | 0.015% $ 1.1m | |
| Executive VP & COO | 1.08yrs | US$8.49m | 0.077% $ 5.6m | |
| Senior VP | 14.5yrs | US$3.22m | 0.025% $ 1.8m | |
| Executive VP | 8.67yrs | US$3.98m | 0.023% $ 1.7m | |
| Founder & President of Current Lifestyle Marketing | no data | no data | no data | |
| Founder | no data | no data | no data | |
| Chief Information Officer & Senior VP | no data | no data | no data | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Executive Vice President - Emeritus | 19.67yrs | US$689.09k | no data | |
| Senior VP & MD | no data | no data | no data | |
| Senior Vice President of Corporate Services | no data | no data | no data |
11.6yrs
Average Tenure
62yo
Average Age
Experienced Management: IPG's management team is seasoned and experienced (11.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 15.75yrs | US$16.59m | 0.31% $ 22.4m | |
| Founder | no data | no data | no data | |
| Chairman of Momentum Worldwide and Chief Executive Officer of Momentum Worldwide | no data | no data | no data | |
| Chairman & CEO of Jack Morton Worldwide | no data | no data | no data | |
| Chairman of Siboney and Chief Executive Officer of Siboney | no data | no data | no data | |
| Founder | no data | no data | no data | |
| Independent Director | 13yrs | US$350.00k | 0.028% $ 2.0m | |
| Executive Chairman of Draftfcb | no data | no data | no data | |
| Independent Director | 13.25yrs | US$329.00k | 0.0096% $ 698.5k | |
| Presiding Independent Director | 7.5yrs | US$395.00k | 0.032% $ 2.4m | |
| Chairman of GolinHarris | no data | no data | no data | |
| Chairman of the Martin Agency | no data | no data | no data |
13.1yrs
Average Tenure
66yo
Average Age
Experienced Board: IPG's board of directors are seasoned and experienced ( 13.1 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Interpublic Group of Companies, Inc.
- Ticker: IPG
- Exchange: NYSE
- Founded: 1930
- Industry: Advertising
- Sector: Media
- Market Cap: US$7.292b
- Shares outstanding: 389.92m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IPG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Oct 1971 |
| IPG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1971 |
| 0JCK | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Oct 1971 |
| I1PH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. The company operates through two segments, Integrated Agency Networks and Constituency Management Group. The ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 23:41 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.