Omnicom Stock Analysis (NYSE:OMC)

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$85.34 $0.07 (0.08%) OMC stock closing price Feb 23, 2017 (Closing)
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Omnicom
Updated on : Feb 23, 2017
previous close
OMC 85.3 (0%)
S&P 500 2363.8 (0%)
Closing Price On: Feb 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
13%
Sector Average:
10.1%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.95B
Debt/Equity Ratio:
 1.86
Compared to the industry
Cash Flow
Operating cash flow:
$1.61B
Net Income:
$350.3M
Dividend Yield
OMC dividend yield:
2.52%
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:
20.7%
Return on Equity:
40.7%
Free Cash Flow Margin:
36.5%
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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 Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy OMC stock?

  • Omnicom had a healthy average operating margin of 13% over the last 4 quarters.
  • The operating cash flow looks good at 4.6 times the net income.
  • The Omnicom stock currently trades at a price to earnings ratio of 17.8. We rate this as a positive, compared to the industry average of 22.3.
  • Omnicom has an attractive ROIC (Return on Invested Capital) of 20.7%
  • The LTM ROE of 40.7% for Omnicom is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 36.5%.

Should you sell OMC stock?

  • Omnicom has a debt/equity ratio of  1.86, which is worse than the average in the Business Services sector.

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