Interpublic Group of Companies (IPG) AI Stock Analysis

• Market Cap: $9.08B
• Dividend Yield: 5.37%
• Average Volume (3M): 7.14M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.81
• Revenue Growth: -5.96%
• EPS Growth: -30.61%
• Country: US
• Employees: 51,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.75
• Shares Outstanding: 363,328,980
• 10 Day Avg. Volume: 6,755,301
• 30 Day Avg. Volume: 7,142,142
• PEG Ratio: -0.43
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 11.51
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: 10.38
• 1Y Price Target: $27.50
• Price Target Upside: -1.01% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $28.00 ▲(0.79% Upside)

Interpublic Group's overall stock score reflects significant challenges in financial performance, particularly with declining revenue and profitability. Technical analysis indicates bearish momentum, while valuation remains a strong point with an attractive dividend yield. The earnings call highlighted strategic progress but also noted revenue declines and restructuring challenges.

Positive Factors

Strategic Transformation

IPG's focus on centralization and leveraging technology for efficiencies indicates a strategic shift that can enhance operational effectiveness and long-term competitiveness.

Client Sector Growth

Growth in key client sectors suggests a diversified revenue base and resilience against sector-specific downturns, supporting sustainable long-term growth.

Major Partnership

Securing a global partnership with Bayer enhances IPG's market position and could lead to increased revenue streams and client trust in the long term.

Negative Factors

Organic Revenue Decline

The decline in organic revenue indicates challenges in maintaining client relationships and could pressure future growth unless addressed.

Profitability Challenges

A declining net profit margin reflects reduced profitability, which could impact IPG's ability to reinvest in growth and innovation.

Cash Flow Generation

Reduced cash generation limits financial flexibility and may hinder IPG's capacity to fund strategic initiatives or manage debt effectively.

Interpublic Group of Companies Business Overview & Revenue Model

Company Description

Interpublic Group of Companies (IPG) is a global marketing and advertising agency headquartered in New York City. Founded in 1900, IPG operates through a diverse range of sectors including advertising, digital marketing, media planning and buying, public relations, and specialized marketing services. The company's core offerings include creative advertising, brand strategy, consumer engagement, and data analytics, delivered through a network of well-known agencies and brands such as McCann, FCB, and Weber Shandwick.

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 faces challenges with declining revenue and profitability margins, as well as reduced cash flow generation. While leverage is stable, the company needs to address operational efficiency and cash flow management to improve financial health.

Income Statement

The income statement shows a mixed performance. The gross profit margin for TTM is 17.91%, which is stable but slightly lower than previous years. The net profit margin has decreased to 4.27% in TTM, indicating reduced profitability. Revenue growth is negative at -1.30% for TTM, reflecting a decline in sales. EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 1.13 in TTM, which is stable compared to previous years. Return on equity is 11.92% for TTM, showing a decline from previous years, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio is not calculated, but the overall financial stability appears moderate.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -3.92% in TTM, indicating reduced cash generation. The operating cash flow to net income ratio is 0.11, suggesting limited cash flow relative to net income. The free cash flow to net income ratio is 0.88, showing a reasonable conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.21B	10.69B	10.89B	10.93B	10.24B	9.06B
Gross Profit	1.86B	1.82B	1.81B	1.84B	1.85B	1.35B
EBITDA	1.25B	1.54B	1.90B	1.71B	1.68B	844.10M
Net Income	551.60M	689.50M	1.10B	938.00M	952.80M	351.10M
Balance Sheet
Total Assets	16.97B	18.33B	19.27B	18.84B	19.91B	18.04B
Cash, Cash Equivalents and Short-Term Investments	1.53B	2.19B	2.39B	2.55B	3.27B	2.51B
Total Debt	4.14B	4.25B	4.67B	4.53B	4.80B	5.18B
Total Liabilities	13.25B	14.42B	15.22B	15.10B	16.30B	15.01B
Stockholders Equity	3.66B	3.80B	3.94B	3.65B	3.53B	2.90B
Cash Flow
Free Cash Flow	806.80M	913.40M	375.40M	430.70M	1.88B	1.68B
Operating Cash Flow	915.20M	1.06B	554.70M	608.80M	2.08B	1.85B
Investing Cash Flow	-125.10M	-151.10M	-85.40M	-430.10M	-185.30M	-216.20M
Financing Cash Flow	-796.40M	-1.02B	-634.30M	-899.40M	-1.08B	-346.20M

Interpublic Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPG, the sentiment is Negative. The current price of 27.78 is above the 20-day moving average (MA) of 25.18, above the 50-day MA of 26.03, and above the 200-day MA of 25.20, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 45.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	$13.80B	10.55	31.17%	3.91%	4.13%	-7.84%
CRTO	74 Outperform	$1.04B	6.68	15.37%	―	0.32%	69.78%
MGNI	68 Neutral	$2.11B	38.97	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.35B	70.01	3.80%	―	6.76%	1841.46%
WPP	64 Neutral	$4.28B	8.58	11.24%	10.06%	-1.89%	90.72%
IPG	63 Neutral	$9.08B	17.05	14.79%	5.37%	-5.96%	-30.61%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Interpublic Group of Companies Corporate Events

Interpublic Group Reports Q3 Earnings Amid Merger Plans

Interpublic Group, a prominent player in the global advertising and marketing services industry, operates through three main segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The company provides a wide range of services including media and communications, digital services, advertising, and strategic consulting.

Interpublic and Omnicom Extend Exchange Offer Deadline

On October 30, 2025, Interpublic Group of Companies, Inc. (IPG) and Omnicom Group Inc. announced an extension of the expiration date for Omnicom’s exchange offers for IPG’s outstanding notes, moving it from October 31, 2025, to November 28, 2025. This extension is linked to the anticipated merger between the two companies, expected to close by the end of November. The merger, however, faces potential risks including regulatory hurdles, integration challenges, and economic conditions that could impact the expected benefits and operations of the combined entity.

The most recent analyst rating on (IPG) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.

Omnicom Extends Exchange Offers for IPG Notes

On September 30, 2025, IPG and Omnicom Group Inc. announced updates regarding Omnicom’s pending acquisition of IPG. The regulatory approval process is complete in all required jurisdictions except Mexico and the European Union, with the acquisition expected to close by December 31, 2025. Omnicom extended the expiration date of its exchange offers for IPG’s outstanding notes to October 31, 2025. The announcement highlights potential risks and uncertainties associated with the merger, including regulatory delays, integration challenges, and economic conditions that could impact the combined company’s operations and stakeholder interests.

The most recent analyst rating on (IPG) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.

Interpublic Group Extends Note Exchange Offer Deadline

On September 9, 2025, The Interpublic Group of Companies, Inc. (IPG) and Omnicom Group Inc. announced an extension of the expiration date for Omnicom’s exchange offers for IPG’s existing senior notes. The expiration date has been moved from September 9, 2025, to September 30, 2025. This extension is part of the ongoing process related to Omnicom’s pending acquisition of IPG, which is expected to be completed within the year, subject to regulatory approvals. The exchange offers and consent solicitations are anticipated to result in reduced liquidity for the existing IPG notes not exchanged, and the proposed amendments to the existing IPG indenture will reduce protection for remaining holders of these notes.

The most recent analyst rating on (IPG) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.

IPG Amends Senior Notes Amid Omnicom Acquisition

On August 22, 2025, IPG entered into a Thirteenth Supplemental Indenture to amend existing senior notes, with consents solicited through exchange offers and consent solicitations managed by Omnicom Group Inc. The amendments aim to eliminate certain covenants and restrictive provisions, contingent on the completion of Omnicom’s acquisition of IPG. As of August 25, 2025, Omnicom announced significant early participation in the exchange offers, receiving consents from a majority of noteholders, indicating strong support for the proposed amendments.

The most recent analyst rating on (IPG) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Interpublic Group of Companies stock, see the IPG Stock Forecast page.