Publicis Groupe (PUB) AI Stock Analysis

• Market Cap: €18.84B
• Dividend Yield: 4.63%
• Average Volume (3M): 712.36K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.91
• Revenue Growth: 9.88%
• EPS Growth: 16.84%
• Country: FR
• Employees: 107,273
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 3.51
• Shares Outstanding: 254,311,860
• 10 Day Avg. Volume: 792,155
• 30 Day Avg. Volume: 712,363
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €106.63
• Price Target Upside: 37.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: €86.00 ▲(10.65% Upside)

The overall stock score is primarily driven by strong financial performance, which is the most significant factor. However, bearish technical indicators significantly impact the score, suggesting the stock is currently out of favor in the market. The reasonable valuation provides some support, but the lack of positive technical momentum tempers the overall assessment.

Publicis Groupe Business Overview & Revenue Model

Company Description

Publicis Groupe S.A. provides marketing, communications, and digital business transformation services in North America, Europe, the Asia Pacific, Latin America, Africa, and the Middle East. The company offers advisory services for brand strategy, and repositioning and their identity under the Publicis Worldwide, Saatchi & Saatchi, Leo Burnett, Marcel, Fallon, and BBH brands; online advertising services under the Razorfish and Moxie brand names; crisis communications, media relations, public affairs, financial communications, and strategy and event management services; media consulting, planning, and buying services; performance marketing services; and e-commerce services to optimize distribution channels. It also designs and delivers brand content for various channels, such as television, print, radio, cinema, and billboards, as well as digital, including display, social networks, Internet video, etc. under the Prodigious, Harbor, and The Pub brand names. In addition, the company operates Epsilon PeopleCloud, a unified data and technology platform; and Publicis Sapient, a technological, digital, and consulting platform for automotive, consumer products, energy and raw materials, retail, financial services, healthcare, media-telecoms, and travel and hospitality sectors. Further, it provides healthcare communication services under the Digitas Health, Publicis Health Media, and Saatchi & Saatchi Wellness brands for the healthcare and well-being sectors. The company serves clients in the non-food consumer products, finance, automotive, TMT, healthcare, food and beverage, leisure and travel, energy and industry, retail, and public and other sectors. Publicis Groupe S.A. was founded in 1926 and is headquartered in Paris, France.

How the Company Makes Money

Publicis Groupe generates revenue primarily through its services in advertising, media, and digital marketing. The company's revenue model includes fees for creative and media services, performance-based compensation, and project-based engagements. Key revenue streams come from long-term contracts with large multinational clients, which often involve multi-channel campaigns that integrate traditional and digital media. Additionally, Publicis Groupe leverages data analytics and technology solutions to provide insights and targeted advertising, enhancing the effectiveness of marketing strategies for its clients. Strategic partnerships with tech companies and platforms also contribute to its revenue, enabling Publicis to offer advanced digital capabilities and expand its service offerings.

Publicis Groupe Financial Statement Overview

Summary

Publicis Groupe demonstrates strong financial health with robust revenue growth, high profitability, and efficient cash flow management. The company shows effective cost management and operational efficiency, though there is room for improvement in equity utilization.

Income Statement

Publicis Groupe has demonstrated strong revenue growth with a 8.3% increase from 2023 to 2024. Gross profit margin is exceptionally high at 100%, indicating effective cost management. The net profit margin has improved to 10.4%, reflecting enhanced profitability. EBIT and EBITDA margins are also robust, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.47, indicating moderate leverage. Return on equity is strong at 15.0%, showcasing effective use of shareholder funds. The equity ratio is 27.8%, which is stable, though there's room for improvement in equity utilization.

Cash Flow

Publicis Groupe exhibits a solid free cash flow growth rate of 10.4% from 2023 to 2024, reflecting strong cash-generating capabilities. The operating cash flow to net income ratio is 1.39, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio is 1.24, demonstrating efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.86B	16.03B	14.80B	14.20B	11.74B	10.79B
Gross Profit	2.54B	6.94B	6.40B	2.06B	1.64B	1.39B
EBITDA	3.22B	3.15B	2.68B	2.88B	2.12B	1.94B
Net Income	1.71B	1.66B	1.31B	1.22B	1.03B	576.00M
Balance Sheet
Total Assets	36.08B	39.85B	36.72B	35.90B	32.85B	30.16B
Cash, Cash Equivalents and Short-Term Investments	2.21B	3.82B	4.25B	4.62B	3.66B	3.70B
Total Debt	5.46B	5.17B	5.54B	6.17B	5.72B	6.65B
Total Liabilities	26.48B	28.82B	26.97B	26.30B	24.29B	23.00B
Stockholders Equity	9.63B	11.06B	9.79B	9.63B	8.59B	7.18B
Cash Flow
Free Cash Flow	2.11B	2.06B	1.87B	2.20B	1.57B	2.69B
Operating Cash Flow	2.34B	2.30B	2.05B	2.40B	1.71B	2.85B
Investing Cash Flow	-1.36B	-1.12B	-348.00M	-752.00M	-419.00M	-319.00M
Financing Cash Flow	-1.60B	-2.01B	-1.75B	-980.00M	-1.58B	-1.86B

Publicis Groupe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:PUB, the sentiment is Negative. The current price of 77.72 is below the 20-day moving average (MA) of 80.32, below the 50-day MA of 86.73, and below the 200-day MA of 91.78, indicating a bearish trend. The MACD of -2.88 indicates Positive momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 43.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:PUB.

Publicis Groupe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	€3.99B	17.02	-2.44%	3.89%	1.88%	-16.39%
PUB	64 Neutral	€18.84B	11.03	17.51%	4.63%	9.88%	16.84%
0O9Y	―	€83.77M	11.76	8.47%	―	―	―
0MGO	―	€3.18B	13.22	11.69%	―	―	―
6H1	―	€94.58M	4.14	11.59%	―	―	―
ALBLD	69 Neutral	€100.51M	21.62		―	2.64%	58.49%
ALHOP	―	€46.00M	9.15		4.36%	―	―