Interpublic Group of Companies (IPG) AI Stock Analysis

• Market Cap: $8.97B
• Dividend Yield: 5.44%
• Average Volume (3M): 8.89M
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.82
• Revenue Growth: -3.18%
• EPS Growth: -53.36%
• Country: US
• Employees: 51,500
• Sector: Communication Services
• Sector Strength: 93
• Industry: Advertising Agencies
• EPS (TTM): 0.33
• Shares Outstanding: 369,734,700
• 10 Day Avg. Volume: 10,915,144
• 30 Day Avg. Volume: 8,885,022
• PEG Ratio: -0.62
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.27
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 6.36
• Enterprise Value/Ebitda: 1.84
• 1Y Price Target: $31.13
• Price Target Upside: 28.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $27.00 ▲(11.34%Upside)

Interpublic Group's strong cash flow management and fair valuation provide a solid foundation, while recent corporate developments offer strategic growth opportunities. However, current technical weakness and revenue challenges, along with restructuring charges, suggest a cautious outlook. The successful integration of Omnicom and realization of cost synergies will be crucial for future performance.

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

Interpublic Group of Companies (IPG) is a leading global provider of marketing solutions. The company operates through several networks specializing in consumer advertising, digital marketing, communications planning, public relations, and specialized communications disciplines. IPG serves clients in over 100 countries, delivering strategic marketing solutions across a diverse range of industries.

How the Company Makes Money

IPG makes money primarily through the provision of marketing and advertising services. The company's revenue model is based on charging clients for services such as creative advertising, digital marketing, public relations, and media buying. IPG often enters into long-term contracts with clients which provide a steady stream of income. Additionally, the company leverages its global network of agencies and specialized partners to offer integrated solutions that can command premium pricing. Significant factors contributing to its earnings include the ability to maintain strong client relationships, adapt to digital marketing trends, and expand its service offerings to meet the evolving needs of clients in various industries.

Interpublic Group of Companies Financial Statement Overview

Summary

Interpublic Group demonstrates financial stability with strong cash flow management and operational efficiency. Despite challenges in revenue growth, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.52B	10.69B	10.89B	10.93B	10.24B	9.06B
Gross Profit	1.73B	1.82B	1.81B	1.84B	1.85B	1.35B
EBITDA	1.23B	1.54B	1.90B	1.77B	1.75B	1.30B
Net Income	493.70M	689.50M	1.10B	938.00M	952.80M	351.10M
Balance Sheet
Total Assets	17.13B	18.33B	19.27B	18.84B	19.91B	18.04B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.19B	2.39B	2.55B	3.27B	2.51B
Total Debt	4.21B	4.25B	4.67B	4.53B	4.80B	5.18B
Total Liabilities	13.43B	14.42B	15.22B	15.10B	16.30B	15.01B
Stockholders Equity	3.58B	3.80B	3.94B	3.65B	3.53B	2.90B
Cash Flow
Free Cash Flow	1.05B	913.40M	375.40M	430.70M	1.88B	1.68B
Operating Cash Flow	1.18B	1.06B	554.70M	608.80M	2.08B	1.85B
Investing Cash Flow	-159.30M	-151.10M	-85.40M	-430.10M	-185.30M	-216.20M
Financing Cash Flow	-1.04B	-1.02B	-634.30M	-899.40M	-1.08B	-346.20M

Interpublic Group of Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.25
• 50DMA: Positive
• 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 Positive. The current price of 24.25 is above the 20-day moving average (MA) of 23.51, above the 50-day MA of 24.05, and below the 200-day MA of 26.89, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 73.00 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	78 Outperform	$13.92B	9.76	36.50%	3.92%	5.84%	-1.17%
MGNI	77 Outperform	$2.98B	106.40	4.30%	―	5.59%	―
WPP	71 Outperform	$7.64B	10.93	16.04%	5.43%	2.07%	407.27%
CRTO	71 Outperform	$1.28B	9.72	13.46%	―	-1.18%	100.33%
IPG	71 Outperform	$8.97B	18.54	13.33%	5.44%	-3.18%	-53.36%
STGW	66 Neutral	$1.20B	876.47	0.19%	―	9.86%	―
Sector *	61 Neutral	$41.22B	-1.26	-14.49%	3.95%	2.29%	-73.14%

Interpublic Group of Companies Corporate Events

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.