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Market Cap

US$18.0b

Last Updated

2021/05/11 22:39 UTC

Data Sources

Company Financials +

Executive Summary

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. More Details


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

0.2%

OMC

0.8%

US Media

-0.9%

US Market


1 Year Return

61.5%

OMC

57.6%

US Media

48.6%

US Market

Return vs Industry: OMC exceeded the US Media industry which returned 55.2% over the past year.

Return vs Market: OMC exceeded the US Market which returned 48.3% over the past year.


Shareholder returns

OMCIndustryMarket
7 Day0.2%0.8%-0.9%
30 Day7.8%5.4%-0.8%
90 Day28.7%6.0%0.2%
1 Year68.5%61.5%59.5%57.6%50.9%48.6%
3 Year25.6%12.4%75.0%67.4%64.8%55.1%
5 Year18.8%0.5%89.7%76.1%143.2%116.7%

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

Valuation

Is Omnicom Group undervalued compared to its fair value and its price relative to the market?

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OMC ($83.74) is trading below our estimate of fair value ($130.02)

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 (18.5x) compared to the US Media industry average (22.5x).

PE vs Market: OMC is good value based on its PE Ratio (18.5x) compared to the US market (20.2x).


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% 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% 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 (42.3%).


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?

3.34%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 12 2021Ex Dividend DateJun 10 2021Dividend Pay DateJul 09 202129 days from Ex DividendBuy in the next 28 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: OMC's dividend (3.34%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: OMC's dividend (3.34%) is low compared to the top 25% of dividend payers in the US market (3.41%).


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$18.011b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/11 22:39
End of Day Share Price2021/05/11 00:00
Earnings2021/03/31
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.