OMC

Omnicom Group Inc.

Fundamental data last updated:September 22, 2026

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company profile

SECTOR

Communication Services

industry

Advertising Agencies

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, retail marketing, sales support, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. The company was incorporated in 1944 and is based in New York, New York.

 


VALUATION

P/E

238.50

Market Cap ($M USD)

$20.90B

Forward P/E

4.43

PEG

0.00

PRICE TO SALES

1.05

PRICE TO BOOK

1.59

EV / EBITDA

23.54

5-Year Average P/E

Free Cash Flow Yield

14.31%

DCF Value

$154.38

Graham Number

$17.85

Price to FCF

6.99

EV to FCF

9.41

Earnings Yield

0.42%

FCF Yield

14.31%

DIVIDEND

Yield

4.09%

Annual Payout

$3.00

Payout Ratio

1053.33%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.31

Next Year EPS Growth Estimate

$16.54

Next Year Revenue Growth Estimate

$27.24B

Return on Equity (ROE)

0.82%

FREE CASH FLOW

Operating Margin

13.70%

Debt-to-Equity

1.06

Piotroski F-Score

4

Altman Z-Score

1.02

Return on Invested Capital (ROIC)

11.07%

Current Ratio

0.91

Quick Ratio

0.77

Net Debt to EBITDA

6.05

Interest Coverage

8.40

Gross Profit margin

16.76%

FCF PER SHARE

$14.59

REVENUE PER SHARE

$96.75

Gainseekers Quantitative Analysis

Summary

Omnicom Group Inc. presents a perplexing valuation scenario. Despite a staggering DCF value nearly double the recent pricing, the market seems skeptical, possibly due to its astronomical P/E ratio of over 250. The Forward P/E of 4.66 suggests future earnings potential, yet the Altman Z-score of 1.03 raises red flags about financial distress. The earnings yield is a meager 0.40%, indicating limited immediate returns. This stock is a paradox of potential growth and present risk, demanding careful scrutiny.

AI Exposure / Tech Reliance

In the rapidly evolving landscape of advertising, Omnicom's positioning in the Communication Services sector offers a unique advantage. As AI and digital technologies reshape marketing, the company’s industry expertise could facilitate adaptation to these shifts. However, success will hinge on their ability to integrate cutting-edge tech into traditional advertising models.

The Bull Case

For the discerning GARP investor, Omnicom offers compelling reasons to buy. With a robust ROIC of 11.07% and a solid FCF yield of 13.62%, the company demonstrates efficient capital use and cash generation. Despite a middling Piotroski F-Score of 4, its operating margin of 13.70% underscores strong pricing power. These metrics suggest a company capable of delivering value through strategic investments and operational efficiency.

The Bear Case

Yet, the bear case cannot be ignored. Omnicom's payout ratio of 1053.33% is unsustainable, signaling potential dividend cuts. The Price/Book ratio of 1.67 and Price/Sales of 1.11 suggest the stock isn't cheap, especially with a net debt to EBITDA of 6.05, indicating leverage concerns. Trading close to its 52-week high, the stock appears technically overextended, warranting caution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$93.67

Institutional Ownership %

1-Year Beta

0.68

Insider Buying % (6 Mo)

Distance to 52-Week High

18.87%

Distance to 52-Week Low

9.55%

EARNINGS SURPRISE %

3.26%

50-DAY SMA

$75.61

200-DAY SMA

$76.77

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.