Omnicom Stock Analysis (NYSE:OMC)

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$82.92 $0.79 (0.94%) OMC stock closing price May 23, 2017 (Closing)
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Omnicom
Updated on : May 23, 2017
previous close
OMC 82.9 (0%)
S&P 500 2398.4 (0%)
Closing Price On: May 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
2%
Operating Profit
Operating Margin:
13.1%
Sector Average:
9%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.94B
Debt/Equity Ratio:
 1.85
Compared to the industry
Cash Flow
Operating cash flow:
-$195.3M
Net Income:
$241.8M
Dividend Yield
OMC dividend yield:
2.65%
PROS      CONS
Operating Margins
ROIC
ROE
PE Valuation
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
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:
20.8%
Return on Equity:
42.2%
Free Cash Flow Margin:
-6.3%
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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 (3.2/5)

Our Omnicom stock opinion is based on fundamentals of the company. This Omnicom stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy OMC stock?

  • Omnicom's average operating margin of 13.1% was exceptional.
  • The price to earnings multiple of 17.1 is attractive when compared with the industry average PE ratio of 20.9.
  • Omnicom has an attractive ROIC (Return on Invested Capital) of 20.8%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Omnicom at 42.2%.

Should you sell OMC stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2%.
  • Omnicom is debt laden and has a high debt/equity ratio of  1.85.
  • The company has a negative free cash flow margin of -6.3%.

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