Omnicom Stock Analysis (NYSE:OMC)

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$84.66 $0.31 (0.37%) OMC stock closing price Mar 22, 2017 (Closing)
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Omnicom
Updated on : Mar 22, 2017
previous close
OMC 84.7 (0%)
S&P 500 2348.5 (0%)
Closing Price On: Mar 22, 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:
11.8%
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:
2.54%
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 :
1.6
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 (3.7/5)

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's average operating margin of 13% was exceptional.
  • The company has an operating cash flow which is 4.6 times the net income.
  • The Omnicom stock currently trades at a price to earnings ratio of 17.7. We rate this as a positive, compared to the industry average of 21.8.
  • 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 healthy free cash flow margin of 36.5%.

Should you sell OMC stock?

Comments on this video and Omnicom stock