NYSE:IPG

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Interpublic Group of Companies

Executive Summary

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


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: IPG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

IPG

2.6%

US Media

2.8%

US Market


1 Year Return

1.8%

IPG

13.9%

US Media

20.7%

US Market

Return vs Industry: IPG underperformed the US Media industry which returned 13.9% over the past year.

Return vs Market: IPG underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

IPGIndustryMarket
7 Day5.3%2.6%2.8%
30 Day27.9%21.4%12.3%
90 Day23.0%11.9%6.4%
1 Year6.0%1.8%15.6%13.9%23.4%20.7%
3 Year27.9%13.5%35.5%29.7%47.2%37.4%
5 Year16.3%-2.7%66.1%54.1%94.1%72.7%

Long-Term 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

Valuation

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

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPG ($22.8) is trading below our estimate of fair value ($39)

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 (15.6x) compared to the US Media industry average (22.9x).

PE vs Market: IPG is good value based on its PE Ratio (15.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: IPG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: IPG is overvalued based on its PB Ratio (3.3x) compared to the US Media industry average (1.8x).


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?

23.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPG's forecast earnings growth (23.7% per year) is above the savings rate (2.2%).

Earnings vs Market: IPG's earnings (23.7% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IPG's revenue (3% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: IPG's revenue (3% 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 (25.1%)


Next Steps

Past Performance

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

3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPG has a large one-off loss of $238.4M impacting its September 30 2020 financial results.

Growing Profit Margin: IPG's current net profit margins (6.9%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: IPG's earnings have grown by 3.8% 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 (-13.1%) over the past year, making it difficult to compare to the Media industry average (-12.2%).


Return on Equity

High ROE: IPG's Return on Equity (19.9%) 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 ($7.3B) exceed its short term liabilities ($7.2B).

Long Term Liabilities: IPG's short term assets ($7.3B) exceed its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: IPG's debt to equity ratio (136.1%) is considered high.

Reducing Debt: IPG's debt to equity ratio has increased from 82.6% to 136.1% over the past 5 years.

Debt Coverage: IPG's debt is well covered by operating cash flow (36.1%).

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?

4.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: IPG's dividend (4.47%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: IPG's dividend (4.47%) is in the top 25% of dividend payers in the US market (4.08%)


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 (68.4%), 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 (47.2% payout ratio).


Next Steps

Management

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

13.8yrs

Average management tenure


CEO

Michael Roth (75 yo)

15.83yrs

Tenure

US$16,590,172

Compensation

Mr. Michael Isor Roth, also known as Michael, serves as the Chief Executive Officer of Interpublic Group of Companies, Inc since January 19, 2005. Mr. Roth has been Chairman and Director of Interpublic Gro...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD16.59M) is above average for companies of similar size in the US market ($USD6.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Roth
Chairman & CEO15.83yrsUS$16.59m0.31%
$ 27.3m
Ellen Johnson
Executive VP & CFO0.83yrUS$1.92m0.015%
$ 1.3m
Philippe Krakowsky
Executive VP & COO1.17yrsUS$8.49m0.077%
$ 6.9m
Christopher Carroll
Senior VP14.58yrsUS$3.22m0.025%
$ 2.2m
Andrew Bonzani
Executive VP8.75yrsUS$3.98m0.023%
$ 2.0m
Virginia Devlin
Founder & President of Current Lifestyle Marketingno datano datano data
Robert Greenberg
Founderno datano datano data
John Halper
Chief Information Officer & Senior VPno datano datano data
Jerome Leshne
Senior Vice President of Investor Relationsno datano datano data
Barry Linsky
Executive Vice President - Emeritus19.75yrsUS$689.09kno data
Richard Haray
Senior Vice President of Corporate Servicesno datano datano data
Heide Gardner
Chief Diversity & Inclusion Officer and Senior VP13.83yrsno datano data

13.8yrs

Average Tenure

59.5yo

Average Age

Experienced Management: IPG's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Roth
Chairman & CEO15.83yrsUS$16.59m0.31%
$ 27.3m
Robert Greenberg
Founderno datano datano data
Christopher Weil
Chairman of Momentum Worldwide and Chief Executive Officer of Momentum Worldwideno datano datano data
Josh McCall
Chairman & CEO of Jack Morton Worldwideno datano datano data
Jose Cubas
Chairman of Siboney and Chief Executive Officer of Siboneyno datano datano data
Bill Imada
Founderno datano datano data
Mary J. Guilfoile
Independent Director13.08yrsUS$350.00k0.028%
$ 2.5m
Howard Draft
Executive Chairman of Draftfcbno datano datano data
Jocelyn Carter-Miller
Independent Director13.33yrsUS$329.00k0.0096%
$ 851.9k
David Thomas
Presiding Independent Director7.58yrsUS$395.00k0.032%
$ 2.9m
Fred Cook
Chairman of GolinHarrisno datano datano data
John Adams
Chairman of the Martin Agencyno datano datano data

13.2yrs

Average Tenure

66yo

Average Age

Experienced Board: IPG's board of directors are seasoned and experienced ( 13.2 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.


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: 1902
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$8.893b
  • Shares outstanding: 390.03m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1971
IPGDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1971
0JCKLSE (London Stock Exchange)YesCommon StockGBUSDOct 1971
I1PH34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates through two segments, Integrated Agency Networks and Constituency Management Group. The company o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 00:12
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.