Omnicom Stock Analysis (NYSE:OMC)

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$85.31 $0.14 (0.16%) OMC stock closing price Jan 13, 2017 (Closing)
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Omnicom
Updated on : Jan 13, 2017
previous close
OMC 85.3 (0%)
S&P 500 2274.6 (0%)
Closing Price On: Jan 13, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
12.9%
Sector Average:
9.6%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
5.01B
Debt/Equity Ratio:
 1.77
Compared to the industry
Cash Flow
Operating cash flow:
$707.7M
Net Income:
$252.6M
Dividend Yield
OMC dividend yield:
2.46%
PROS      CONS
Operating Margins
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
OMC PS :
1.3
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
19.6%
Return on Equity:
39.2%
Free Cash Flow Margin:
18.1%
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Omnicom Analysis Video

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View Omnicom stock analysis video. This is our OMC analyst opinion covering the buy and sell arguments for OMC stock.

Omnicom Group Inc. Stock Rating (3.5/5)

Our Omnicom stock opinion is based on fundamentals of the company. This Omnicom stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy OMC stock?

  • The TTM operating margin was good at 12.9% for Omnicom.
  • The company has an operating cash flow which is 2.8 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 18.3 is attractive when compared with the industry average PE ratio of 22.
  • Omnicom has an attractive ROIC (Return on Invested Capital) of 19.6%
  • The LTM ROE of 39.2% for Omnicom is attractive.
  • The company has a healthy free cash flow margin of 18.1%.

Should you sell OMC stock?

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