Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $14.07B
• Dividend Yield: 3.86%
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.84
• Revenue Growth: 5.21%
• EPS Growth: -3.74%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 79
• Industry: Advertising Agencies
• EPS (TTM): 2.05
• Shares Outstanding: 193,722,890
• 10 Day Avg. Volume: 3,399,892
• 30 Day Avg. Volume: 4,324,564
• 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: 1.34
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $87.40
• Price Target Upside: 20.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $82.00 ▲(12.93% Upside)

Omnicom Group's strong financial performance and strategic growth initiatives, including significant acquisitions, are primary strengths. The valuation suggests potential upside, though technical indicators show a cautious market sentiment. Earnings call insights reflect a balanced outlook with growth in AI and acquisitions but challenges in some business segments and macroeconomic conditions.

Positive Factors

Guidance Confidence

Omnicom fully repeated its 2025 guidance, indicating confidence in achieving its forecasted organic sales growth and margin targets.

Market Positioning

Agencies' media practice benefits from structural tailwinds, and scale increasingly matters, placing Omnicom in a favorable position.

Negative Factors

Market Valuation Concerns

Shares are trading at a record 65% discount to the S&P500, which implies significant market skepticism about the company's future prospects.

Merger Concerns

Concerns around the pending IPG merger and related integration risks are shared among investors.

Omnicom Group Business Overview & Revenue Model

Company Description

Omnicom Group Inc. is a leading global marketing and corporate communications company based in the United States. It operates in the advertising, marketing, and communications sectors, providing a comprehensive range of services including advertising, customer relationship management (CRM), public relations, and specialty communications. The company serves a diverse array of clients across various industries, helping them enhance their brand presence and effectively reach their target audiences.

How the Company Makes Money

Omnicom Group generates revenue through a variety of services offered to its clients, primarily in the advertising and marketing communications fields. The company's key revenue streams include fees from advertising services, media planning and buying, digital and interactive marketing, direct and promotional marketing, and public relations services. Omnicom works with a wide array of clients across different sectors, billing them for customized campaigns and strategic marketing solutions. Additionally, partnerships with major media companies and platforms, as well as strategic acquisitions of specialized agencies, contribute to its revenue by expanding its service offerings and client base.

Omnicom Group Financial Statement Overview

Summary

Omnicom Group exhibits strong financial health with robust revenue growth and efficient equity utilization. Despite moderate leverage and stable cash flow conversion, the company's operational efficiency is affirmed by its cash generation capabilities.

Income Statement

Omnicom Group demonstrates strong revenue growth with a 15.07% increase from 2023 to TTM (Trailing-Twelve-Months). The company maintains healthy margins: Gross Profit Margin at 18.33% and Net Profit Margin at 8.79% for TTM. There is a slight decrease in EBIT and EBITDA margins, attributed to increased expenses. However, consistent revenue growth enhances its competitive position.

Balance Sheet

The company's balance sheet shows a reasonable Debt-to-Equity ratio at 1.58, indicating moderate leverage. Return on Equity (ROE) is an impressive 31.18%, reflecting efficient use of equity. The Equity Ratio stands at 15.59%, suggesting a need for stronger equity base, yet the firm has managed liabilities effectively.

Cash Flow

Omnicom's cash flow performance is robust with a 10.92% increase in Free Cash Flow from 2024 to TTM. The Operating Cash Flow to Net Income Ratio is 1.37, indicating strong cash generation relative to earnings. However, Free Cash Flow to Net Income Ratio remains stable at 1.26, suggesting room for improvement in cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.69B	14.69B	14.29B	14.29B	13.17B
Gross Profit	2.92B	2.71B	2.68B	2.79B	2.18B
EBITDA	2.62B	2.42B	2.38B	2.32B	1.95B
Net Income	1.48B	1.39B	1.30B	1.40B	951.20M
Balance Sheet
Total Assets	29.62B	28.04B	27.00B	28.42B	27.65B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.43B	4.34B	5.32B	5.60B
Total Debt	6.87B	6.50B	6.70B	6.87B	6.93B
Total Liabilities	24.45B	23.40B	22.84B	24.65B	24.07B
Stockholders Equity	4.19B	3.62B	3.25B	3.27B	3.08B
Cash Flow
Free Cash Flow	1.59B	1.34B	848.30M	1.28B	1.65B
Operating Cash Flow	1.73B	1.42B	926.50M	1.95B	1.72B
Investing Cash Flow	-1.06B	79.10M	-380.90M	-709.20M	-136.10M
Financing Cash Flow	-582.00M	-1.39B	-1.36B	-1.39B	-408.40M

Omnicom Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.61
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMC, the sentiment is Negative. The current price of 72.61 is below the 20-day moving average (MA) of 73.23, above the 50-day MA of 72.41, and below the 200-day MA of 82.02, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMC.

Omnicom Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	76 Outperform	$14.07B	10.42	33.96%	3.86%	5.21%	-3.74%
CRTO	73 Outperform	$0.00	9.92	12.79%	―	-0.40%	36.44%
STGW	71 Outperform	$1.46B	509.91	-0.32%	―	9.56%	―
IPG	70 Outperform	$9.06B	20.95	11.70%	5.45%	-5.16%	-56.06%
ZD	70 Outperform	$1.25B	19.37	4.12%	―	3.24%	36.80%
WPP	66 Neutral	$5.82B	8.38	16.04%	8.95%	2.07%	407.27%
Sector *	61 Neutral	$41.48B	-2.54	-10.68%	3.99%	2.74%	-43.64%

Omnicom Group Corporate Events

Omnicom Group Reports Q2 2025 Financial Results

On July 15, 2025, Omnicom Group reported its financial results for the second quarter of 2025, highlighting a revenue increase to $4.0 billion with a 3.0% organic growth. Despite macroeconomic challenges, the company emphasized its resilience and operational efficiency, driven by its Omni platform. Additionally, Omnicom announced progress in its acquisition of Interpublic, having cleared U.S. antitrust review, which is expected to enhance growth opportunities for stakeholders.

The most recent analyst rating on (OMC) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group’s Acquisition of Interpublic Approved by FTC

On June 23, 2025, Omnicom Group Inc. and Interpublic announced that the U.S. Federal Trade Commission (FTC) has concluded its antitrust review of Omnicom’s proposed acquisition of Interpublic, agreeing on a mutually acceptable consent order. This development marks a significant step forward in the acquisition process, positioning the combined entity to offer a comprehensive range of marketing and sales solutions, leveraging creativity and technology to meet evolving client needs. The transaction is expected to close in the second half of the year, pending remaining regulatory approvals.

The most recent analyst rating on (OMC) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group Holds Annual Shareholder Meeting Decisions

On May 6, 2025, Omnicom Group Inc. held its annual meeting of shareholders where several key decisions were made. Shareholders elected 11 individuals to the Board of Directors, approved executive compensation, ratified KPMG LLP as independent auditors for the fiscal year ending December 31, 2025, and voted against a proposal for an independent Board chairman.