Omnicom Group
Market Cap
US$17.9b
Last Updated
2021/05/06 23:24 UTC
Data Sources
Company Financials +
Executive Summary
Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Omnicom Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: OMC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
1.7%
OMC
-0.4%
US Media
-1.7%
US Market
1 Year Return
57.2%
OMC
56.0%
US Media
51.8%
US Market
Return vs Industry: OMC matched the US Media industry which returned 57.1% over the past year.
Return vs Market: OMC exceeded the US Market which returned 52.8% over the past year.
Shareholder returns
| OMC | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | -0.4% | -1.7% |
| 30 Day | 8.7% | 3.2% | 1.5% |
| 90 Day | 28.0% | 7.1% | 3.1% |
| 1 Year | 64.1%57.2% | 57.9%56.0% | 54.4%51.8% |
| 3 Year | 26.2%13.0% | 74.3%66.8% | 63.0%52.8% |
| 5 Year | 18.3%0.05% | 82.6%69.6% | 127.2%101.9% |
Long-Term Price Volatility Vs. Market
How volatile is Omnicom Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Here's Why Omnicom Group Inc.'s (NYSE:OMC) CEO Compensation Is The Least Of Shareholders Concerns3 weeks ago | Simply Wall St
Is It Too Late To Consider Buying Omnicom Group Inc. (NYSE:OMC)?1 month ago | Simply Wall St
Should You Or Shouldn't You: A Dividend Analysis on Omnicom Group Inc. (NYSE:OMC)Valuation
Is Omnicom Group undervalued compared to its fair value and its price relative to the market?
35.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: OMC ($84.3) is trading below our estimate of fair value ($130.06)
Significantly Below Fair Value: OMC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: OMC is good value based on its PE Ratio (18.6x) compared to the US Media industry average (21.1x).
PE vs Market: OMC is good value based on its PE Ratio (18.6x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: OMC is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: OMC is overvalued based on its PB Ratio (5.6x) compared to the US Media industry average (2.1x).
Future Growth
How is Omnicom Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
4.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OMC's forecast earnings growth (4.2% per year) is above the savings rate (2%).
Earnings vs Market: OMC's earnings (4.2% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: OMC's earnings are forecast to grow, but not significantly.
Revenue vs Market: OMC's revenue (1.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: OMC's revenue (1.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OMC's Return on Equity is forecast to be high in 3 years time (33.6%)
Past Performance
How has Omnicom Group performed over the past 5 years?
-0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OMC has high quality earnings.
Growing Profit Margin: OMC's current net profit margins (7.4%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: OMC's earnings have declined by 0.7% per year over the past 5 years.
Accelerating Growth: OMC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OMC had negative earnings growth (-26.9%) over the past year, making it difficult to compare to the Media industry average (0.9%).
Return on Equity
High ROE: Whilst OMC's Return on Equity (27.04%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Omnicom Group's financial position?
Financial Position Analysis
Short Term Liabilities: OMC's short term assets ($13.7B) exceed its short term liabilities ($13.5B).
Long Term Liabilities: OMC's short term assets ($13.7B) exceed its long term liabilities ($8.2B).
Debt to Equity History and Analysis
Debt Level: OMC's debt to equity ratio (139.4%) is considered high.
Reducing Debt: OMC's debt to equity ratio has reduced from 149.4% to 139.4% over the past 5 years.
Debt Coverage: OMC's debt is well covered by operating cash flow (41.4%).
Interest Coverage: OMC's interest payments on its debt are well covered by EBIT (11.5x coverage).
Balance Sheet
Dividend
What is Omnicom Group current dividend yield, its reliability and sustainability?
3.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OMC's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: OMC's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: OMC's dividends per share have been stable in the past 10 years.
Growing Dividend: OMC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (58.5%), OMC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OMC's dividends in 3 years are forecast to be well covered by earnings (45.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
John Wren (67 yo)
24.33yrs
Tenure
US$11,147,799
Compensation
Mr. John D. Wren is Chief Executive Officer since January 1997 and Chairman since May 2018 of Omnicom Group Inc. and was its President since 1996 until May 2018. Mr. Wren has been Director of Omnicom Group...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD11.15M) is about average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: OMC's management team is seasoned and experienced (6.5 years average tenure).
Board Members
Experienced Board: OMC's board of directors are considered experienced (8.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: OMC 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
Omnicom Group Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Omnicom Group Inc.
- Ticker: OMC
- Exchange: NYSE
- Founded: 1944
- Industry: Advertising
- Sector: Media
- Market Cap: US$17.888b
- Shares outstanding: 215.08m
- Website: https://www.omnicomgroup.com
Number of Employees
Location
- Omnicom Group Inc.
- 280 Park Avenue
- New York
- New York
- 10017
- United States
Listings
Biography
Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationshi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 23:24 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| 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.