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Omnicom Group Inc OMC

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Stock XNYS Rating as of
$94.22 +0.45 (0.48%)
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As of Delayed Price Closed
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Company Report

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Omnicom Earnings: Flywheel Integration and Advertising Drive Solid Growth

Michael Hodel

Omnicom posted a solid start to 2024 as first-quarter revenue and profitability met our expectations. The integration of Flywheel has bolstered the precision marketing offering. We appreciate Omnicom’s efforts to extend its service offerings, with the acquisition of Flywheel providing clients with support through e-commerce purchasing. We are maintaining our $108 fair value estimate and narrow moat rating and view the shares as modestly undervalued.

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Price vs Fair Value

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OMC is trading at a 13% discount.
Price
$93.77
Fair Value
$676.00
Uncertainty
High
1-Star Price
$976.30
5-Star Price
$72.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Omnicom's management team is very experienced and has delivered solid results over an extended period through a variety of economic environments.

Bears

Marketers are increasingly asking for better results from their agencies while heavily scrutinizing the fees that they're paying. This trend will only continue as alternative marketing channels gain adoption.

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News

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Trading Information

Previous Close Price
$93.77
Day Range
$93.16–95.11
52-Week Range
$72.20–99.23
Bid/Ask
$88.00 / $96.76
Market Cap
$18.45 Bil
Volume/Avg
1.4 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
12.14
Price/Sales
1.23
Dividend Yield (Trailing)
2.97%
Dividend Yield (Forward)
2.97%
Total Yield
5.39%

Company Profile

Omnicom is a holding company that owns several advertising agencies and related firms. It provides traditional and digital advertising services that include creative design, market research, data analytics, and ad placement. In addition, Omnicom provides outsourced public relations and other communications services. The firm operates globally, providing services in more than 70 countries; it generates more than one half of its revenue in North America and nearly 30% in Europe.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Mid Value
Total Number of Employees
75,900
Website
https://www.omnicomgroup.com

Competitors

Valuation

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Metric
OMC
IPG
PUB
Price/Earnings (Normalized)
 12.1410.3314.84
Price/Book Value
 5.032.982.67
Price/Sales
 1.231.101.79
Price/Cash Flow
 9.808.2414.12
Price/Earnings
OMC
IPG
PUB

Financial Strength

Metric
OMC
IPG
PUB
Quick Ratio
 0.741.010.90
Current Ratio
 0.931.060.92
Interest Coverage
 10.426.628.78
Quick Ratio
OMC
IPG
PUB

Profitability

Metric
OMC
IPG
PUB
Return on Assets (Normalized)
 6.25%6.42%4.90%
Return on Equity (Normalized)
 48.96%30.87%18.09%
Return on Invested Capital (Normalized)
 15.82%14.35%11.11%
Return on Assets
OMC
IPG
PUB
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