Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $14.57B
• Dividend Yield: 3.86%
• Average Volume (3M): 4.53M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.79
• Revenue Growth: 5.84%
• EPS Growth: -1.17%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 81
• Industry: Advertising Agencies
• EPS (TTM): 1.70
• Shares Outstanding: 195,109,400
• 10 Day Avg. Volume: 3,964,051
• 30 Day Avg. Volume: 4,525,165
• PEG Ratio: -4.79
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.67
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: 1.71
• 1Y Price Target: $89.57
• Price Target Upside: 21.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 81 Outperform
• Price Target: $85.00 ▲(15.76%Upside)

Omnicom's strong valuation and solid financial performance are the primary drivers of its high score. Technical stability and strategic acquisitions further bolster the outlook, despite some sector-specific challenges and economic uncertainties.

Positive Factors

Market Position

Omnicom's large scale in the US and the reputation of its creative networks leave it decently placed despite not being very vocal about its transformation.

Structural Tailwinds

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

Negative Factors

Initial Outlook

The initial 2025 outlook fell a bit short of expectations.

Market Valuation

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

Pending Acquisition

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 solid financial health with strong profitability, efficient cash flow management, and stable growth. The company's high return on equity and consistent revenue increase highlight its competitive advantage, although moderate leverage suggests some risk.

Income Statement

Omnicom Group shows healthy profitability with a consistent gross profit margin around 18.6% and a net profit margin of approximately 9.2% in TTM. The EBIT and EBITDA margins are stable at 14.6% and 16.7%, respectively. Revenue growth has been positive, with a notable increase from 2023 to TTM, indicating good performance in a competitive industry.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 1.58, indicating moderate leverage. The return on equity is strong at 33.1%, reflecting efficient use of shareholder funds. However, the equity ratio of 15.5% suggests a reliance on liabilities for financing, which could present risks.

Cash Flow

Omnicom Group demonstrates robust cash flow performance, with a free cash flow growth rate of 5.5% from 2023 to TTM. The operating cash flow to net income ratio of 1.08 reflects efficient cash conversion, and the free cash flow to net income ratio of 0.98 indicates solid cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.75B	15.69B	14.69B	14.29B	14.29B	13.17B
Gross Profit	2.93B	2.92B	2.71B	2.68B	2.79B	2.18B
EBITDA	2.63B	2.62B	2.42B	2.38B	2.32B	1.95B
Net Income	1.45B	1.48B	1.39B	1.30B	1.40B	951.20M
Balance Sheet
Total Assets	28.11B	29.62B	28.04B	27.00B	28.42B	27.65B
Cash, Cash Equivalents and Short-Term Investments	3.38B	4.34B	4.43B	4.34B	5.32B	5.60B
Total Debt	6.93B	6.87B	6.50B	6.49B	6.65B	6.93B
Total Liabilities	22.75B	24.45B	23.40B	22.84B	24.65B	24.07B
Stockholders Equity	4.37B	4.19B	3.62B	3.25B	3.27B	3.08B
Cash Flow
Free Cash Flow	1.42B	1.59B	1.34B	848.30M	1.28B	1.65B
Operating Cash Flow	1.57B	1.73B	1.42B	926.50M	1.95B	1.72B
Investing Cash Flow	-223.80M	-1.06B	79.10M	-380.90M	-709.20M	-136.10M
Financing Cash Flow	-1.09B	-582.00M	-1.39B	-1.36B	-1.39B	-408.40M

Omnicom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.43
• 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 OMC, the sentiment is Positive. The current price of 73.43 is above the 20-day moving average (MA) of 72.05, above the 50-day MA of 73.17, and below the 200-day MA of 84.39, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OMC.

Omnicom Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	81 Outperform	$14.57B	10.22	36.50%	3.86%	5.84%	-1.17%
ZD	71 Outperform	$1.40B	20.78	4.12%	―	3.24%	36.80%
IPG	71 Outperform	$9.13B	19.11	13.33%	5.35%	-3.18%	-53.36%
CRTO	70 Outperform	$1.33B	10.10	13.46%	―	-1.18%	100.33%
WPP	66 Neutral	$6.27B	9.12	16.04%	6.50%	2.07%	407.27%
STGW	63 Neutral	$1.23B	915.69	0.19%	―	9.86%	―
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%

Omnicom Group Corporate Events

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.

Omnicom Reports Q1 2025 Financial Results

On April 15, 2025, Omnicom announced its financial results for the first quarter of 2025, reporting a revenue of $3.7 billion and an organic growth of 3.4%. The company is optimistic about its upcoming merger with The Interpublic Group, expected to close in the second half of the year, which is anticipated to bring significant revenue growth and cost synergies, despite the challenging economic environment.