Interpublic Group of Companies (IPG) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 5.37%
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: -5.96%
• EPS Growth: -30.61%
• Country: US
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 97
• Industry: N/A
• EPS (TTM): 0.75
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• 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: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $26.00 ▼(-6.41% Downside)

Interpublic Group's overall stock score reflects significant challenges in financial performance, particularly with declining revenue and profitability. Technical indicators suggest bearish momentum, while valuation metrics provide some support with a fair P/E ratio and strong dividend yield. The recent merger with Omnicom is a positive strategic development, but the company must address operational inefficiencies and cash flow management to improve its financial health.

Positive Factors

Strategic Merger Completion

The completion of the merger with Omnicom enhances strategic positioning, potentially leading to improved operational efficiencies and market reach.

Client Sector Growth

Growth in key client sectors indicates robust demand and potential for sustained revenue streams, supporting long-term business stability.

Progress in Strategic Transformation

Strategic transformation efforts enhance operational efficiency and competitive advantage, positioning the company for future growth.

Negative Factors

Declining Revenue

A decline in organic revenue suggests challenges in maintaining market share and client retention, impacting long-term growth prospects.

Reduced Profitability

Decreased profitability margins indicate pressure on cost management and pricing power, potentially affecting long-term financial health.

Cash Flow Challenges

Reduced cash flow generation limits financial flexibility and investment capacity, posing risks to sustainable business operations.

Interpublic Group of Companies Business Overview & Revenue Model

Company Description

How the Company Makes Money

IPG generates revenue primarily through service fees from its various agencies that provide advertising, marketing, and media services to clients. The company's revenue model includes project-based fees, retainer agreements, and performance-based compensation linked to client outcomes. Key revenue streams include traditional advertising services, digital marketing, and media buying, which account for a significant portion of its earnings. Additionally, IPG benefits from partnerships with major brands across different industries, driving consistent demand for its services. The company also leverages data analytics and insights to enhance the effectiveness of its campaigns, which can lead to increased client retention and expanded service offerings.

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: Positive

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 24.89, above the 50-day MA of 25.78, and above the 200-day MA of 25.13, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 8.28 is Positive, 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
IAS	78 Outperform	$1.72B	36.75	4.48%	―	15.51%	39.60%
OMC	73 Outperform	$26.14B	12.21	31.17%	3.55%	4.13%	-7.84%
MGNI	68 Neutral	$2.40B	43.98	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.34B	69.10	3.80%	―	6.76%	1841.46%
WPP	64 Neutral	$4.89B	9.82	11.24%	9.00%	-1.89%	90.72%
IPG	64 Neutral	―	―	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

Omnicom Completes Merger with Interpublic Group

On December 2, 2025, Omnicom Group Inc. completed its merger with The Interpublic Group of Companies, Inc. and finalized its exchange offers and consent solicitations for up to $2.95 billion of IPG’s outstanding notes. Omnicom issued approximately $2.76 billion in new notes, retiring the accepted IPG notes, while $185 million of IPG notes remain outstanding. This strategic financial maneuver aims to streamline obligations and enhance Omnicom’s financial structure post-merger.

Interpublic Group Completes Merger with Omnicom

On November 26, 2025, Interpublic Group of Companies completed a merger, resulting in the termination of its existing Revolving Credit Agreement with Citibank N.A. and the conversion of its stock-based awards into Omnicom’s equivalents. This merger led to the delisting of Interpublic’s common stock from the NYSE, marking a significant transition as all shares were converted into Omnicom stock or cash, and the company’s reporting obligations were suspended.

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.

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.

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.