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Omnicom Group

NYSE:OMC
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OMC
NYSE
$18B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. The last earnings update was 108 days ago. More info.


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OMC Share Price and Events
Price Volatility
OMC
Industry
5yr Volatility vs Market

Value

 Is Omnicom Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Omnicom Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Omnicom Group.

NYSE:OMC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:OMC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Media Unlevered Beta Simply Wall St/ S&P Global 0.84
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.838 (1 + (1- 21%) (27.93%))
1.022
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.022 * 7.05%)
10.16%

Discounted Cash Flow Calculation for NYSE:OMC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Omnicom Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:OMC DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 1,817.67 1,727.60 1,994.70 1,626.70 1,734.40
Source Analyst x3 Analyst x3 Analyst x2 Analyst x1 Analyst x1
Present Value
Discounted (@ 10.16%)
1,650.05 1,423.66 1,492.19 1,104.68 1,069.20
Present value of next 5 years cash flows $6,740
NYSE:OMC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $1,734 × (1 + 2.95%) ÷ (10.16% – 2.95%)
$24,771
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $24,771 ÷ (1 + 10.16%)5
$15,270
NYSE:OMC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $6,740 + $15,270
$22,010
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $22,010 / 227
$96.84
NYSE:OMC Discount to Share Price
Calculation Result
Value per share (USD) From above. $96.84
Current discount Discount to share price of $70.69
= -1 x ($70.69 - $96.84) / $96.84
27%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Omnicom Group is available for.
Intrinsic value
27%
Share price is $70.69 vs Future cash flow value of $96.84
Current Discount Checks
For Omnicom Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Omnicom Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Omnicom Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Omnicom Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Omnicom Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:OMC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $4.80
NYSE:OMC Share Price ** NYSE (2018-07-17) in USD $70.69
United States of America Media Industry PE Ratio Median Figure of 179 Publicly-Listed Media Companies 15.79x
United States of America Market PE Ratio Median Figure of 7,808 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Omnicom Group.

NYSE:OMC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:OMC Share Price ÷ EPS (both in USD)

= 70.69 ÷ 4.80

14.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Omnicom Group is good value based on earnings compared to the US Media industry average.
  • Omnicom Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Omnicom Group's expected growth come at a high price?
Raw Data
NYSE:OMC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.73x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
6.6%per year
United States of America Media Industry PEG Ratio Median Figure of 141 Publicly-Listed Media Companies 1.39x
United States of America Market PEG Ratio Median Figure of 5,905 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NYSE:OMC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.73x ÷ 6.6%

2.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Omnicom Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Omnicom Group's assets?
Raw Data
NYSE:OMC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $11.56
NYSE:OMC Share Price * NYSE (2018-07-17) in USD $70.69
United States of America Media Industry PB Ratio Median Figure of 300 Publicly-Listed Media Companies 1.72x
United States of America Market PB Ratio Median Figure of 13,225 Publicly-Listed Companies 1.73x
NYSE:OMC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:OMC Share Price ÷ Book Value per Share (both in USD)

= 70.69 ÷ 11.56

6.12x

* Primary Listing of Omnicom Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Omnicom Group is overvalued based on assets compared to the US Media industry average.
X
Value checks
We assess Omnicom Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Media industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Media industry average (and greater than 0)? (1 check)
  5. Omnicom Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Omnicom Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Omnicom Group expected to grow at an attractive rate?
  • Omnicom Group's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Omnicom Group's earnings growth is positive but not above the United States of America market average.
  • Omnicom Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:OMC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:OMC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 6.6%
NYSE:OMC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 3%
United States of America Media Industry Earnings Growth Rate Market Cap Weighted Average 9.4%
United States of America Media Industry Revenue Growth Rate Market Cap Weighted Average 5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:OMC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:OMC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 17,627 1,646 1
2021-12-31 17,118 1,539 1
2020-12-31 16,625 2,270 1,406 8
2019-12-31 16,074 1,883 1,307 12
2018-12-31 15,648 1,881 1,274 13
NYSE:OMC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 15,316 1,598 1,110
2017-12-31 15,274 2,024 1,087
2017-09-30 15,339 1,461 1,181
2017-06-30 15,410 1,999 1,171
2017-03-31 15,505 2,211 1,167
2016-12-31 15,417 1,952 1,142
2016-09-30 15,328 2,067 1,122
2016-06-30 15,244 1,847 1,106
2016-03-31 15,164 1,956 1,092
2015-12-31 15,134 2,200 1,082
2015-09-30 15,176 1,884 1,077
2015-06-30 15,219 1,612 1,080

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Omnicom Group's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Omnicom Group's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:OMC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Omnicom Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OMC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 7.58 7.97 7.18 2.00
2021-12-31 7.07 7.42 6.72 2.00
2020-12-31 6.45 6.82 6.19 5.00
2019-12-31 5.86 6.20 5.45 8.00
2018-12-31 5.55 5.75 5.19 8.00
NYSE:OMC Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 4.80
2017-12-31 4.68
2017-09-30 5.06
2017-06-30 4.98
2017-03-31 4.93
2016-12-31 4.80
2016-09-30 4.68
2016-06-30 4.59
2016-03-31 4.50
2015-12-31 4.43
2015-09-30 4.38
2015-06-30 4.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Omnicom Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Omnicom Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Omnicom Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Omnicom Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Omnicom Group's growth in the last year to its industry (Media).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Omnicom Group's year on year earnings growth rate has been positive over the past 5 years.
  • Omnicom Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Omnicom Group's 1-year earnings growth is negative, it can't be compared to the US Media industry average.
Earnings and Revenue History
Omnicom Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Omnicom Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:OMC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 15,315.80 1,109.60 446.80
2017-12-31 15,273.60 1,086.80 450.00
2017-09-30 15,338.80 1,181.30 449.30
2017-06-30 15,410.40 1,170.60 453.90
2017-03-31 15,505.20 1,166.50 444.40
2016-12-31 15,416.90 1,142.10 443.90
2016-09-30 15,328.40 1,121.70 438.90
2016-06-30 15,243.90 1,106.10 438.60
2016-03-31 15,164.30 1,092.10 437.80
2015-12-31 15,134.40 1,081.50 431.80
2015-09-30 15,176.20 1,077.10 812.40
2015-06-30 15,219.30 1,079.60 1,211.40
2015-03-31 15,284.80 1,088.50 1,629.10
2014-12-31 15,317.80 1,083.60 477.20
2014-09-30 15,180.80 1,053.20 2,029.90
2014-06-30 14,921.60 1,005.00 2,024.90
2014-03-31 14,687.80 967.70 2,003.90
2013-12-31 14,584.50 966.00 2,034.80
2013-09-30 14,471.00 972.60 1,972.10
2013-06-30 14,387.10 980.70 1,977.90
2013-03-31 14,311.00 975.40 1,984.20
2012-12-31 14,219.40 975.80 2,008.40
2012-09-30 14,127.70 944.30 2,037.80
2012-06-30 14,101.90 946.20 2,036.90
2012-03-31 14,028.50 942.10 2,050.30
2011-12-31 13,872.50 941.90 1,886.00
2011-09-30 13,606.40 917.50 1,861.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Omnicom Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Omnicom Group used its assets less efficiently than the US Media industry average last year based on Return on Assets.
  • Omnicom Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Omnicom Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Media industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Omnicom Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Omnicom Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Omnicom Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Omnicom Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Omnicom Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Omnicom Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Omnicom Group Company Filings, last reported 3 months ago.

NYSE:OMC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 3,392.10 4,957.00 2,570.00
2017-12-31 3,334.60 4,964.10 3,796.40
2017-09-30 3,231.70 4,995.00 1,851.00
2017-06-30 2,949.00 4,979.60 1,874.40
2017-03-31 2,857.60 4,992.80 2,485.80
2016-12-31 2,861.20 4,996.90 3,022.80
2016-09-30 3,045.60 5,032.50 1,969.20
2016-06-30 2,996.90 5,033.90 1,536.70
2016-03-31 3,110.80 4,706.20 1,750.00
2015-12-31 3,057.30 4,644.40 2,619.70
2015-09-30 3,082.10 4,631.10 1,430.00
2015-06-30 3,264.00 4,567.10 1,397.30
2015-03-31 3,010.10 4,603.70 1,532.40
2014-12-31 3,507.00 4,549.70 2,390.30
2014-09-30 3,701.60 3,810.50 850.30
2014-06-30 4,144.30 4,063.00 1,544.60
2014-03-31 4,407.20 4,039.20 2,089.10
2013-12-31 4,269.90 4,095.10 2,728.70
2013-09-30 4,002.70 4,054.00 1,534.40
2013-06-30 3,706.00 4,050.60 1,414.60
2013-03-31 3,849.60 4,458.30 2,090.30
2012-12-31 4,154.70 4,512.60 2,698.90
2012-09-30 4,043.40 4,462.10 1,972.80
2012-06-30 3,943.80 3,938.90 1,680.00
2012-03-31 4,280.50 3,192.90 1,508.50
2011-12-31 4,181.90 3,249.00 1,805.00
2011-09-30 4,106.30 3,201.60 912.00
  • Omnicom Group's level of debt (146.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (115.7% vs 146.1% today).
  • Debt is well covered by operating cash flow (32.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.7x coverage).
X
Financial health checks
We assess Omnicom Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Omnicom Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Omnicom Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.4%
Current annual income from Omnicom Group dividends. Estimated to be 3.58% next year.
If you bought $2,000 of Omnicom Group shares you are expected to receive $68 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Omnicom Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • Omnicom Group's dividend is below the markets top 25% of dividend payers in United States of America (3.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:OMC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Media Industry Average Dividend Yield Market Cap Weighted Average of 140 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5856 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:OMC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.40 1.00
2021-12-31 2.40 1.00
2020-12-31 2.64 7.00
2019-12-31 2.58 9.00
2018-12-31 2.43 9.00
NYSE:OMC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-05-22 2.400 3.209
2018-02-15 2.400 3.241
2017-10-13 2.400 3.307
2017-07-13 2.200 2.889
2017-05-25 2.200 2.665
2017-02-03 2.200 2.605
2016-12-08 2.200 2.559
2016-07-14 2.200 2.636
2016-04-01 2.200 2.649
2016-02-03 2.000 2.577
2015-12-03 2.000 2.741
2015-07-16 2.000 2.816
2015-05-18 2.000 2.741
2015-02-10 2.000 2.578
2014-12-08 2.000 2.652
2014-07-18 2.000 2.805
2014-05-21 2.000 2.815
2014-02-07 1.600 2.248
2013-12-03 1.600 2.217
2013-07-18 1.600 2.451
2013-05-21 1.600 2.533
2013-02-12 1.600 2.699
2012-11-29 1.200 2.321
2012-07-19 1.200 2.383
2012-05-22 1.200 2.497
2012-02-09 1.200 2.424
2011-12-08 1.000 2.222
2011-07-21 1.000 2.420
2011-05-24 1.000 2.139
2011-02-14 1.000 2.062
2010-12-10 0.800 1.722
2010-07-21 0.800 1.978
2010-05-25 0.800 2.200
2010-02-10 0.800 2.031
2009-12-04 0.600 1.598
2009-07-17 0.600 1.664
2009-05-19 0.600 1.899
2009-02-13 0.600 2.267
2008-12-05 0.600 2.230
2008-07-18 0.600 1.754

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Omnicom Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (2.5x coverage).
X
Income/ dividend checks
We assess Omnicom Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Omnicom Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Omnicom Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Omnicom Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Wren, image provided by Google.
John Wren
COMPENSATION $23,959,320
AGE 65
TENURE AS CEO 21.5 years
CEO Bio

Mr. John D. Wren has been President of Omnicom Group Inc. since 1996 and has been its Chief Executive Officer since January 1997 and Chairman since May 2018. Mr. Wren has been Director of Omnicom Group Inc. since 1993. Mr. Wren has also been recognized as one of the Best-Performing CEOs in the World by Harvard Business Review, Best Chief Executive Officer by Institutional Investor and as Executive of the Year by Advertising Age. Mr. Wren was part of the team that created Omnicom in 1986, two years after entering the advertising business as an Executive Vice President with Needham Harper Worldwide. He was appointed Chief Executive Officer of the Diversified Agency Services (DAS), division of Omnicom in 1990. In addition, the American Advertising Federation (AAF) honored him as a Pioneer and Supporter of Diversity. Mr. Wren is a Member of the International Business Council of the World Economic Forum and is active in a number of philanthropic endeavors. A member of the Board of Directors of Lincoln Center for the Performing Arts, and a Trustee of the Arthur Ashe Foundation, Mr. Wren has been recognized for his contributions to the community with numerous accolades, among them the Gold Medal Award from the Catholic Youth Organization and the Ellis Island Medal of Honor.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Omnicom Group management team in years:

6.5
Average Tenure
57.5
Average Age
  • The average tenure for the Omnicom Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Wren

TITLE
Chairman
COMPENSATION
$24M
AGE
65
TENURE
21.5 yrs

Jonathan Nelson

TITLE
Founder & CEO of Omnicom Digital
COMPENSATION
$5M
AGE
50

Phil Angelastro

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
53
TENURE
3.8 yrs

Michael O'Brien

TITLE
Senior VP
COMPENSATION
$3M
AGE
56

Dennis Hewitt

TITLE
Treasurer
COMPENSATION
$1M
AGE
73

Tom Watson

TITLE
Co-Founder & Vice Chairman Emeritus

Andy Castellaneta

TITLE
Senior VP & Chief Accounting Officer
AGE
59
TENURE
3.5 yrs

Craig Cuyar

TITLE
Senior VP & Global Chief Information Officer

Shub Mukherjee

TITLE
Vice President of Investor Relations and Executive Finance

Serge Dumont

TITLE
Vice Chairman & Chairman of Asia Pacific
TENURE
9.1 yrs
Board of Directors Tenure

Average tenure and age of the Omnicom Group board of directors in years:

7
Average Tenure
69
Average Age
  • The tenure for the Omnicom Group board of directors is about average.
Board of Directors

Tom Watson

TITLE
Co-Founder & Vice Chairman Emeritus

Keith Reinhard

TITLE
Chairman Emeritus of DDB Worldwide
COMPENSATION
$953K
AGE
83
TENURE
12.3 yrs

John Wren

TITLE
Chairman
COMPENSATION
$24M
AGE
65
TENURE
0.2 yrs

Chuck Brymer

TITLE
Chairman of DDB Worldwide
COMPENSATION
$2M
AGE
58
TENURE
0.4 yrs

Keki Dadiseth

TITLE
Non-Executive Chairman of India Operations
AGE
73
TENURE
11.9 yrs

Dale Adams

TITLE
Chairman & CEO of Diversified Agency Services Division
AGE
60
TENURE
5.3 yrs

Leonard Coleman

TITLE
Lead Independent Director
COMPENSATION
$334K
AGE
69
TENURE
2.6 yrs

Susan Denison

TITLE
Director
COMPENSATION
$299K
AGE
72
TENURE
21.5 yrs

Robert Clark

TITLE
Director
COMPENSATION
$285K
AGE
74
TENURE
16.5 yrs

Mary Choksi

TITLE
Director
COMPENSATION
$289K
AGE
67
TENURE
7 yrs
Recent Insider Trading
  • Omnicom Group insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Omnicom Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Omnicom Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Do Analysts Think About The Future Of Omnicom Group Inc's (NYSE:OMC)?

Based on Omnicom Group Inc's (NYSE:OMC) earnings update in March 2018,. … with profits predicted to increase by 15.28% next year … the past 5-year average growth rate of 3.69%

Simply Wall St -

Should You Be Tempted To Sell Omnicom Group Inc (NYSE:OMC) At Its Current PE Ratio?

However, a static multiple such as PE is never conclusive on its own. … This is because there are many company-specific factors like future prospects and capital structure, which are unaccounted for … This article will cover some key aspects we should consider in order to determine the best multiple to be used for

Simply Wall St -

Is Omnicom Group Inc's (NYSE:OMC) Balance Sheet A Threat To Its Future?

the key to their continued success lies in its financial health. … Today we will look at Omnicom Group’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Omnicom Group Inc (NYSE:OMC): Dividend Is Coming In 4 Days, Should You Buy?

Investors who want to cash in on Omnicom Group Inc's (NYSE:OMC) upcoming dividend of $0.60 per share have only 4 days left to buy the shares before its ex-dividend date, 13 June 2018, in time for dividends payable on the 12 July 2018. … 5 questions to ask before buying a dividend stock? … When researching a dividend stock, I always follow the following screening criteria:

Simply Wall St -

What You Must Know About Omnicom Group Inc's (NYSE:OMC) ROE

Check out our latest analysis for Omnicom Group Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Omnicom Group’s profit against the level of its shareholders’ equity. … This means Omnicom Group returns enough to cover its own cost of equity, with a buffer of 25.55%. … Omnicom Group exhibits a strong ROE against its peers, as well as sufficient returns to cover its cost of equity.

Simply Wall St -

What Is Omnicom Group Inc's (NYSE:OMC) Share Price Doing?

Great news for investors – Omnicom Group is still trading at a fairly cheap price. … What’s more interesting is that, Omnicom Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

How Do Analysts See Omnicom Group Inc (NYSE:OMC) Performing In The Next Couple Of Years?

Below is a brief commentary on my key takeaways on how market analysts predict Omnicom Group's earnings growth trajectory over the next few years and whether the future looks brighter. … See our latest analysis for Omnicom Group Analysts' expectations for the coming year seems optimistic, with earnings growing by a robust 17.70%. … The pro of this technique is that we can get a bigger picture of the direction of Omnicom Group's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors.

Simply Wall St -

Does Omnicom Group Inc's (NYSE:OMC) PE Ratio Warrant A Buy?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for OMC Price per share = $82.78 Earnings per share = $5.058 ∴ Price-Earnings Ratio = $82.78 ÷ $5.058 = 16.4x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … For example, if you are inadvertently comparing lower risk firms with OMC, then OMC’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, OMC’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.

Simply Wall St -

Dividend Hunters Should Consider Omnicom Group Inc (NYSE:OMC), With A 3.20% Yield

Over the past 10 years Omnicom Group Inc (NYSE:OMC) has grown its dividend payouts from $0.6 to $2.4. … View our latest analysis for Omnicom Group What Is A Dividend Rock Star? … NYSE:OMC Historical Dividend Yield Feb 5th 18 If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments.

Simply Wall St -

Was Omnicom Group Inc's (NYSE:OMC) Earnings Growth Better Than The Industry's?

Today I will take you through a basic sense check to gain perspective on how Omnicom Group is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … See our latest analysis for Omnicom Group Did OMC beat its long-term earnings growth trend and its industry? … For Omnicom Group, its most recent trailing-twelve-month earnings is $1,181.2M, which, in comparison to the prior year's figure, has grown by a relatively soft 5.30%.

Simply Wall St -

Company Info

Map
Description

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. The company offers a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. Its services comprises advertising, branding, content marketing, corporate social responsibility consulting, crisis communication, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. The company’s services also include direct, entertainment, experiential, field, interactive, mobile, multi-cultural, non-profit, shopper, promotional, retail, search engine, social media, and sports and event marketing services; and investor relations, marketing research, media planning and buying, organizational communications, package design, product placement, public affairs, public relations, and merchandising and point of sale services. It operates in North America, Latin America, Europe, the Middle East, Africa, Australia, China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. Omnicom Group Inc. was founded in 1944 and is based in New York, New York.

Details
Name: Omnicom Group Inc.
OMC
Exchange: NYSE
Founded: 1944
$17,751,316,822
227,289,588
Website: http://www.omnicomgroup.com
Address: Omnicom Group Inc.
437 Madison Avenue,
New York,
New York, 10022,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE OMC Common Stock New York Stock Exchange US USD 02. Jan 1969
DB OCN Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0KBK Common Stock London Stock Exchange GB USD 02. Jan 1969
Number of employees
Current staff
Staff numbers
77,300
Omnicom Group employees.
Industry
Advertising
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/17 21:25
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/07/16
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.