| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
IPG Overview
The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide.
Rewards
Risk Analysis
Interpublic Group of Companies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$36.15 |
| 52 Week High | US$17.57 |
| 52 Week Low | US$39.35 |
| Beta | 1.03 |
| 1 Month Change | -7.02% |
| 3 Month Change | 2.29% |
| 1 Year Change | 90.26% |
| 3 Year Change | 57.45% |
| 5 Year Change | 61.46% |
| Change since IPO | 559.77% |
Recent News & Updates
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...
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...
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
| IPG | US Media | US Market | |
|---|---|---|---|
| 7D | -5.3% | 1.3% | 1.9% |
| 1Y | 90.3% | 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
| IPG volatility | |
|---|---|
| IPG Beta | 1.03 |
| Industry Beta | 1.16 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1902 | 52,800 | Philippe Krakowsky | https://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
| IPG fundamental statistics | |
|---|---|
| Market Cap | US$14.23b |
| Earnings (TTM) | US$707.20m |
| Revenue (TTM) | US$8.84b |
20.1x
P/E Ratio1.6x
P/S RatioIs IPG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| IPG income statement (TTM) | |
|---|---|
| Revenue | US$8.84b |
| Cost of Revenue | US$6.68b |
| Gross Profit | US$2.17b |
| Expenses | US$1.46b |
| Earnings | US$707.20m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.80 |
| Gross Margin | 24.48% |
| Net Profit Margin | 8.00% |
| Debt/Equity Ratio | 160.7% |
How did IPG perform over the long term?
See historical performance and comparisonDividends
3.0%
Current Dividend Yield59%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 23:09 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.