Omnicom Group Inc
Exchange: NYSESector: Communication ServicesIndustry: Advertising Agencies
Omnicom Media, an Omnicom Connected Capability, is the world's largest global media management network. Powered by the Omni Intelligence Platform, Omnicom Media agencies leverage $73.5 billion in billings, 40,000+ specialists across 70+ markets, and the industry's most powerful portfolio of Identity ( Acxiom RealID ™), Commerce (Flywheel), and Intelligence (Q™) assets to design dynamic Growth Ecosystems that enable the world's most ambitious businesses to grow faster and smarter. The Omnicom Media portfolio includes leading global media agency brands OMD, Initiative, PHD, UM, Hearts & Science, and Mediahub ; Data, Identity & Analytics powerhouses Acxiom, and Annalect ; and a broad spectrum of specialized services.
Did you know?
Free cash flow has been growing at 8.0% annually.
Current Price
$76.92
+0.26%GoodMoat Value
$287.11
273.3% undervaluedProfile
Valuation (TTM)
Market Cap$23.87B
P/E378.91
EV$18.45B
P/B1.98
Shares Out310.34M
P/Sales1.20
Revenue$19.82B
EV/EBITDA29.70
Omnicom Group Inc (OMC) Stock Analysis
GoodMoat Analysis
Omnicom Group presents a complex case for a value investor, with a GoodMoat target price suggesting significant upside but current financial metrics showing severe GAAP unprofitability. The business is a global advertising and marketing services holding company, and its primary moat likely stems from scale, brand, and switching costs. The analysis must reconcile the target price with the company's current negative earnings and low Moat Score.
Read full analysis
Omnicom Group Inc is a global holding company providing advertising, marketing, and corporate communications services through a network of agencies. Applying the GoodMoat framework, its competitive advantages likely include scale privilege, strategic partnerships with major clients, and high switching costs for mission-critical marketing services, though a formal Moat Score would be required for precise classification. The current valuation data is contradictory: the GoodMoat target price of $337.85 implies a margin of safety of over 340% from the current $75.74, which would be classified as 'Deeply Undervalued' per the framework's DCF bands. However, this must be weighed against several severe quality and red flag indicators. The company shows a negative P/E and EPS, a -0.3% profit margin, and negative ROE, failing the 'GAAP Profitability' quality check. The 27.9% YoY revenue growth is strong, and the 19.1% FCF yield is exceptionally high, suggesting the GAAP losses may be non-cash accounting effects. For a value investor, this situation requires careful investigation under Step 1 of the Decision Framework to determine if the business passes the 'Moat & Quality Gate' before the valuation signal can be trusted. The extreme divergence between target price and reported fundamentals makes it a candidate for deeper due diligence to understand the drivers of the loss and the sustainability of its free cash flow. Analysis based on data as of 2024-05-15.
Market Cap$23.87B
Current Price$76.92
P/E Ratio378.91
Forward P/E—
PEG Ratio-55.32
EPS$-0.27
Book Value$38.82
P/B Ratio1.98
OMC Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 3.9B
Revenue
15.0B
FY19
13.2B
FY20
14.3B
FY21
14.3B
FY22
14.7B
FY23
15.7B
FY24
17.3B
FY25
Net Income
1.3B
FY19
945M
FY20
1.4B
FY21
1.3B
FY22
1.4B
FY23
1.5B
FY24
—
FY25
OMC 52-Week Range
$66.60
$84.95
50-Day MA: $78.21200-Day MA: $75.53
Did you know?
Free cash flow has been growing at 8.0% annually.
Omnicom Group Inc (OMC) Financial Summary
Omnicom Group Inc (OMC) is a Communication Services company in the Advertising Agencies industry, listed on NYSE. The stock currently trades at $76.92 with a market capitalization of $23.87B.
Key valuation metrics include a P/E ratio of 378.91, price-to-book ratio of 1.98, and EPS of $-0.27. The company reports a profit margin of 0.3% and return on equity of 0.5%.
OMC Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $23.87B |
| P/E Ratio | 378.91 |
| EPS | $-0.27 |
| P/B Ratio | 1.98 |
| P/S Ratio | 1.20 |
| EV/EBITDA | 29.70 |
| Dividend Yield | 2.30% |
| Profit Margin | 0.3% |
| Return on Equity | 0.5% |
| Debt/Equity | 0.89 |
OMC Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $14.95B | $1.34B |
| FY20 | $13.17B | $945.40M |
| FY21 | $14.29B | $1.41B |
| FY22 | $14.29B | $1.32B |
| FY23 | $14.69B | $1.39B |
| FY24 | $15.69B | $1.48B |
| FY25 | $17.27B | $-54.50M |
Omnicom Group Inc (OMC) Valuation
Based on GoodMoat's DCF model, Omnicom Group Inc has a fair value estimate of $287.11. At the current price of $76.92, the stock appears 73.2% undervalued relative to our intrinsic value estimate.
OMC Quality Indicators
Omnicom Group Inc maintains a profit margin of 0.3% and an operating margin of 2.6%. Return on equity stands at 0.5%. The current ratio is 0.93. Debt-to-equity ratio is 0.89.
About Omnicom Group Inc
Omnicom Media, an Omnicom Connected Capability, is the world's largest global media management network. Powered by the Omni Intelligence Platform, Omnicom Media agencies leverage $73.5 billion in billings, 40,000+ specialists across 70+ markets, and the industry's most powerful portfolio of Identity ( Acxiom RealID ™), Commerce (Flywheel), and Intelligence (Q™) assets to design dynamic Growth Ecosystems that enable the world's most ambitious businesses to grow faster and smarter. The Omnicom Media portfolio includes leading global media agency brands OMD, Initiative, PHD, UM, Hearts & Science, and Mediahub ; Data, Identity & Analytics powerhouses Acxiom, and Annalect ; and a broad spectrum of specialized services.
OMC Free Cash Flow
Omnicom Group Inc generated $2.79B in trailing twelve-month free cash flow, representing an FCF yield of 11.68%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
OMC Shares Outstanding
Omnicom Group Inc has 0.31 billion shares outstanding at a share price of $76.92, giving it a market capitalization of $23.87B.
OMC Recent Insider Trades
Recent insider transactions at Omnicom Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| RICE LINDA JOHNSON | SELL | 1,348 | $114910.26 |