Interpublic Group of Companies (IPG) AI Stock Analysis

• Market Cap: $9.26B
• Dividend Yield: 5.22%
• Average Volume (3M): 6.69M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.90
• Revenue Growth: -5.16%
• EPS Growth: -56.06%
• Country: US
• Employees: 51,500
• Sector: Communication Services
• Sector Strength: 93
• Industry: Advertising Agencies
• EPS (TTM): 0.75
• Shares Outstanding: 366,266,400
• 10 Day Avg. Volume: 5,393,757
• 30 Day Avg. Volume: 6,690,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 6.80
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: $28.66
• Price Target Upside: 13.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $27.00 ▲(6.85% Upside)

Interpublic Group's overall stock score reflects a balanced outlook. The company's strong cash flow management and operational efficiency are significant strengths, while challenges in revenue growth and account losses present risks. The technical analysis indicates a neutral trend, and the valuation is moderate. The positive corporate event regarding the Omnicom acquisition adds a potential growth catalyst.

Positive Factors

Revenue Growth

The sale of digital specialty agencies and increased principal based media offerings should help revenue trends over time.

Strategic Acquisitions

IPG management is focusing on acquiring capabilities in faster-growth areas like retail and healthcare, with a good M&A track record.

Negative Factors

Account Losses

Recent account losses remain material headwinds to growth.

Organic Growth Challenges

Uncertainty is building for IPG heading into 2025, with expected net organic growth decline of 1-2% year over year.

Valuation Risks

Analyst downgrades IPG to Underweight due to valuation risks from margins and M&A uncertainties.

Interpublic Group of Companies Business Overview & Revenue Model

Company Description

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in two segments, Integrated Agency Networks (IAN) and IPG DXTRA. The company offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines, as well as data science services. It also provides various diversified services, including meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

How the Company Makes Money

IPG generates revenue primarily through service fees charged to clients for the advertising and marketing services provided by its subsidiary agencies. The company typically earns money through traditional media buying, digital advertising, and integrated marketing solutions. Key revenue streams include commissions from media buys, project-based fees for creative services, and retainer fees for ongoing marketing consultancy. Additionally, IPG benefits from performance-based incentives tied to the success of campaigns. The company has established significant partnerships with major corporations across various industries, which contributes to its earnings stability and growth potential. Furthermore, IPG's investments in data analytics and technology enhance service offerings, allowing for more effective campaign strategies that attract and retain clients.

Interpublic Group of Companies Financial Statement Overview

Summary

Interpublic Group demonstrates financial stability with strong cash flow management and operational efficiency. While revenue growth faces challenges, the balance sheet and cash flow metrics suggest a well-managed financial structure capable of supporting future growth.

Income Statement

The income statement shows moderate stability with a gross profit margin of 16.44% and a net profit margin of 4.69% for the TTM period. The company has experienced a decline in revenue over the past few years, with negative revenue growth rates, indicating potential challenges in market conditions or competitive pressures. Despite this, the EBIT margin remains solid at 9.29%, demonstrating operational efficiency.

Balance Sheet

The balance sheet is relatively robust with a debt-to-equity ratio of 0.82, reflecting a balanced approach to leveraging. With an equity ratio of 20.93%, the company maintains a healthy proportion of equity financing. However, the return on equity is modest at 13.78%, suggesting room for improvement in generating returns from shareholder equity.

Cash Flow

The cash flow statement is strong, with a notable free cash flow to net income ratio of 2.12 and an operating cash flow to net income ratio of 2.38 for the TTM period. The free cash flow growth rate is substantial at 181.05%, indicating effective cash management and the ability to reinvest in growth opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.69B	10.89B	10.93B	10.24B	9.06B
Gross Profit	1.82B	1.81B	1.84B	1.85B	1.35B
EBITDA	1.54B	1.90B	1.77B	1.75B	1.30B
Net Income	689.50M	1.10B	938.00M	952.80M	351.10M
Balance Sheet
Total Assets	18.33B	19.27B	18.84B	19.91B	18.04B
Cash, Cash Equivalents and Short-Term Investments	2.19B	2.39B	2.55B	3.27B	2.51B
Total Debt	4.25B	4.67B	4.53B	4.80B	5.18B
Total Liabilities	14.42B	15.22B	15.10B	16.30B	15.01B
Stockholders Equity	3.80B	3.94B	3.65B	3.53B	2.90B
Cash Flow
Free Cash Flow	913.40M	375.40M	430.70M	1.88B	1.68B
Operating Cash Flow	1.06B	554.70M	608.80M	2.08B	1.85B
Investing Cash Flow	-151.10M	-85.40M	-430.10M	-185.30M	-216.20M
Financing Cash Flow	-1.02B	-634.30M	-899.40M	-1.08B	-346.20M

Interpublic Group of Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPG, the sentiment is Positive. The current price of 25.27 is above the 20-day moving average (MA) of 25.05, above the 50-day MA of 24.44, and below the 200-day MA of 26.11, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPG.

Interpublic Group of Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	76 Outperform	$14.13B	10.46	33.96%	3.80%	5.21%	-3.74%
CRTO	73 Outperform	$1.35B	9.75	12.79%	―	-0.40%	36.44%
STGW	71 Outperform	$1.43B	499.10	-0.32%	―	9.56%	―
MGNI	71 Outperform	$3.17B	79.19	5.82%	―	5.52%	―
IPG	70 Outperform	$9.26B	21.40	11.70%	5.22%	-5.16%	-56.06%
WPP	66 Neutral	$5.29B	10.76	11.24%	9.77%	-1.89%	90.72%
Sector *	60 Neutral	$43.99B	4.18	-7.47%	4.06%	2.47%	-40.32%

Interpublic Group of Companies Corporate Events

Interpublic Group and Omnicom Announce Joint Initiative

On August 11, 2025, Interpublic Group of Companies (IPG) and Omnicom Group announced a joint initiative related to Omnicom’s pending acquisition of IPG. Omnicom has initiated exchange offers for IPG’s outstanding senior notes, offering up to $2.95 billion in new notes and cash. This move is part of a broader strategy to amend existing indentures and eliminate certain covenants, contingent upon the merger’s completion. The exchange offers and consent solicitations aim to streamline operations and potentially enhance financial flexibility, impacting stakeholders by potentially altering the financial landscape post-merger.

The most recent analyst rating on (IPG) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.

Interpublic Group Gains FTC Clearance for Acquisition

On June 23, 2025, Omnicom Group Inc. and The Interpublic Group of Companies, Inc. announced that the U.S. Federal Trade Commission has concluded its antitrust review of Omnicom’s proposed acquisition of Interpublic, granting early termination of the waiting period under the Hart-Scott-Rodino Act. This regulatory clearance marks a significant step towards finalizing the acquisition, which is expected to enhance the combined companies’ capabilities in meeting evolving client needs in a technology and data-driven landscape.

The most recent analyst rating on (IPG) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.