Omnicom Stock Analysis (NYSE:OMC)

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$78.87 $0.04 (0.05%) OMC stock closing price Jul 27, 2017 (Closing)
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Omnicom
Updated on : Jul 27, 2017
previous close
OMC 78.9 (0%)
S&P 500 2475.4 (0%)
Closing Price On: Jul 27, 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:
8.6%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.95B
Debt/Equity Ratio:
 1.79
Compared to the industry
Cash Flow
Operating cash flow:
-$135.7M
Net Income:
$328.6M
Dividend Yield
OMC dividend yield:
2.79%
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 :
1.2
Industry PS :
1.7
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 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 (3.4/5)

Our Omnicom stock opinion is based on fundamentals of the company. This Omnicom stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy OMC stock?

  • The TTM operating margin was good at 13.2% for Omnicom.
  • OMC stock is trading at an earnings multiple of 16.1 which is better than the industry average of 22.3.
  • Omnicom has an attractive ROIC (Return on Invested Capital) of 20.9%
  • Omnicom has a good Return On Equity (ROE) of 42.9%.

Should you sell OMC stock?

  • Long term revenue growth of 1.8% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  1.79, Omnicom is highly leveraged in comparison to Business Services peers.
  • The company has a negative free cash flow margin of -4.5%.

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