Omnicom Stock Analysis (NYSE:OMC)

Add to My Stocks
$86.34 $1.27 (1.45%) OMC stock closing price Dec 02, 2016 (Closing)
Watch Our Fundamental Analysis Video
Omnicom
Updated on : Dec 02, 2016
previous close
OMC 86.3 (0%)
S&P 500 2192 (0%)
Closing Price On: Dec 02, 2016
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
Long Term Growth
5 Year CAGR:
3.5%
Compared to the industry
Operating Profit
Operating Margin:
12.9%
Sector Average:
9.1%
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:
2.43%
PROS      CONS
Operating Margins
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
Long Term Growth
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%
Double Tap To Exit Full Screen
0:00
/

Omnicom Analysis Video

125 5 2

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 (3.4/5)

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?

  • Omnicom had a healthy average operating margin of 12.9% over the last 4 quarters.
  • The company has an operating cash flow which is 2.8 times the net income.
  • The Omnicom stock currently trades at a price to earnings ratio of 18.5. We rate this as a positive, compared to the industry average of 20.9.
  • 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 good Free Cash Flow (FCF) margin of 18.1%.

Should you sell OMC stock?

  • Long term revenue growth of 3.5% over the past 5 years has been disappointing.
  • Omnicom is debt laden and has a high debt/equity ratio of  1.77.

Comments on this video and Omnicom stock