Omnicom Stock Analysis (NYSE:OMC)

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$82.7 $1.96 (2.43%) OMC stock closing price Jul 20, 2017 (Closing)
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Omnicom
Updated on : Jul 20, 2017
previous close
OMC 82.7 (0%)
S&P 500 2473.5 (0%)
Closing Price On: Jul 20, 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:
8.6%
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:
2.66%
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 :
1.7
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 (3.4/5)

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 13.1% for Omnicom.
  • The Omnicom stock currently trades at a price to earnings ratio of 17. We rate this as a positive, compared to the industry average of 22.3.
  • Omnicom generates a high return on invested capital of 20.8%.
  • Omnicom has a good Return On Equity (ROE) of 42.2%.

Should you sell OMC stock?

  • Long term revenue growth of 2% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  1.85, Omnicom is highly leveraged in comparison to Business Services peers.
  • Omnicom has a negative FCF (Free Cash Flow) margin of -6.3%.

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