Omnicom Stock Analysis, Valuation (NYSE:OMC)

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$74.23 $0.13 (0.17%) OMC stock closing price Sep 21, 2017 (Closing)
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Omnicom
Updated on : Sep 21, 2017
previous close
OMC 74.2 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Advertising Marketing Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.8%
Operating Profit
Operating Margin:
13.2%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.96B
Debt/Equity Ratio:
 1.8
Compared to the industry
Cash Flow
Operating cash flow:
-$135.7M
Net Income:
$328.1M
Dividend Yield
OMC dividend yield:
2.96%
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 :
1.1
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
20.9%
Return on Equity:
42.9%
Free Cash Flow Margin:
-4.5%
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Omnicom Stock Analysis

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View Omnicom stock analysis video. This is our 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 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy OMC stock?

  • Omnicom's average operating margin of 13.2% was exceptional.
  • The price to earnings multiple of 15.1 is attractive when compared with the industry average PE ratio of 23.1.
  • Omnicom generates a high return on invested capital of 20.9%.
  • The LTM ROE of 42.9% for Omnicom is attractive.

Should you sell OMC stock?

  • Long term revenue growth of 1.8% over the past 5 years has been disappointing.
  • Omnicom has a debt/equity ratio of  1.8, which is worse than the average in the Business Services sector.
  • Omnicom has a negative FCF (Free Cash Flow) margin of -4.5%.

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