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Omnicom Group Inc OMC

Morningstar Rating
$88.36 +0.85 (0.97%)
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Company Report

Omnicom: Account Wins and the One-Stop Shop Difference Will Drive More Growth in 2024 and Beyond

Omnicom is the second-largest player (based on revenue) within the advertising industry. Compared with peers, the firm has attained that position less through acquisitions and more through organic growth. With well-recognized creative agencies and sub-holding companies such as BBDO and DDB, we expect Omnicom to maintain its market position, likely making more acquisitions to increase its focus on faster-growing emerging markets and the digital ad business.

Price vs Fair Value

OMC is trading at a 18% discount.
Price
$88.36
Fair Value
$385.00
Uncertainty
High
1-Star Price
$919.60
5-Star Price
$69.40
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 with users.

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News

Trading Information

Previous Close Price
$87.51
Day Range
$87.2188.46
52-Week Range
$72.2099.23
Bid/Ask
$72.60 / $89.32
Market Cap
$17.49 Bil
Volume/Avg
1.4 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
11.55
Price/Sales
1.18
Dividend Yield (Trailing)
3.17%
Dividend Yield (Forward)
3.17%
Total Yield
6.43%

Company Profile

Omnicom is the world’s second-largest ad holding company, based on annual revenue. The firm's services, which include traditional and digital advertising and public relations, are provided worldwide, with over 80% of its revenue coming from more developed regions such as North America and Europe.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Mid Value
Total Number of Employees
75,900

Competitors

Valuation

Metric
OMC
IPG
PUB
Price/Earnings (Normalized)
11.5511.1713.79
Price/Book Value
4.702.65
Price/Sales
1.181.121.67
Price/Cash Flow
9.178.4311.42
Price/Earnings
OMC
IPG
PUB

Financial Strength

Metric
OMC
IPG
PUB
Quick Ratio
0.811.010.90
Current Ratio
0.951.060.92
Interest Coverage
9.756.628.78
Quick Ratio
OMC
IPG
PUB

Profitability

Metric
OMC
IPG
PUB
Return on Assets (Normalized)
5.68%6.48%4.90%
Return on Equity (Normalized)
45.26%31.18%18.09%
Return on Invested Capital (Normalized)
14.64%14.48%11.11%
Return on Assets
OMC
IPG
PUB
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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
PGPEF
Publicis Groupe SAHngwhwh$26.5 Bil
PUBGY
Publicis Groupe SA ADRXcfktdv$26.5 Bil
IPG
The Interpublic Group of Companies IncGvwzsb$12.5 Bil
WPPGF
WPP PLCFsbqmwv$10.6 Bil
WPP
WPP PLC ADRShssrc$10.6 Bil
DNTUF
Dentsu Group IncGjfv$7.6 Bil
DNTUY
Dentsu Group Inc ADRYqxh$7.6 Bil
CRTO
Criteo SA ADRYpwp$1.7 Bil
MGNI
Magnite IncGht$1.4 Bil

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