Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $15.09B
• Dividend Yield: 3.57%
• Average Volume (3M): 4.02M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.86
• Revenue Growth: 5.21%
• EPS Growth: -3.74%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): 2.05
• Shares Outstanding: 193,722,890
• 10 Day Avg. Volume: 3,260,849
• 30 Day Avg. Volume: 4,024,636
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $87.40
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: $88.00 ▲(12.16% Upside)

Omnicom Group's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's attractive valuation and technical indicators further support a favorable outlook, despite some challenges in specific business segments.

Positive Factors

Company Guidance

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

Industry Trends

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

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.

Negative Factors

Investor Concerns

Investor concerns are likely to persist until Omnicom and its peers can demonstrate that AI isn't a threat to their business model.

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.

Merger Risks

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., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, retail marketing, sales support, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. The company was incorporated in 1944 and is based in New York, New York.

How the Company Makes Money

Omnicom Group generates revenue primarily through its advertising and marketing services, which include traditional and digital advertising, media planning and buying, and public relations services. The company operates through multiple agencies that specialize in different aspects of marketing, allowing it to offer integrated solutions to clients. Key revenue streams include project-based fees, retainers from long-term contracts, and commission-based income from media placements. Significant partnerships with major corporate clients and brands, alongside its global network of agencies, contribute to its earnings by providing a steady stream of business and leveraging cross-agency collaboration for comprehensive marketing solutions.

Omnicom Group Financial Statement Overview

Summary

Omnicom Group exhibits strong financial health with consistent revenue growth and efficient equity utilization. The company maintains healthy margins and robust cash flow performance, despite some leverage concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.91B	15.69B	14.69B	14.29B	14.29B	13.17B
Gross Profit	2.77B	2.74B	2.50B	2.58B	2.53B	2.07B
EBITDA	2.52B	2.62B	2.42B	2.37B	2.41B	1.85B
Net Income	1.38B	1.48B	1.39B	1.30B	1.40B	951.20M
Balance Sheet
Total Assets	28.79B	29.62B	28.04B	27.00B	28.42B	27.65B
Cash, Cash Equivalents and Short-Term Investments	3.30B	4.34B	4.43B	4.34B	5.32B	5.60B
Total Debt	5.71B	6.87B	6.50B	6.70B	6.87B	6.93B
Total Liabilities	23.75B	24.45B	23.40B	22.84B	24.65B	24.07B
Stockholders Equity	4.49B	4.19B	3.62B	3.25B	3.27B	3.08B
Cash Flow
Free Cash Flow	1.77B	1.59B	1.34B	848.30M	1.28B	1.65B
Operating Cash Flow	1.92B	1.73B	1.42B	926.50M	1.95B	1.72B
Investing Cash Flow	-213.00M	-1.06B	79.10M	-380.90M	-709.20M	-136.10M
Financing Cash Flow	-1.20B	-582.00M	-1.39B	-1.36B	-1.39B	-408.40M

Omnicom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.46
• 50DMA: Positive
• 100DMA: Positive
• 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 78.46 is above the 20-day moving average (MA) of 75.27, above the 50-day MA of 73.85, and below the 200-day MA of 80.11, indicating a neutral trend. The MACD of 1.45 indicates Negative momentum. The RSI at 61.16 is Neutral, neither overbought nor oversold. The STOCH value of 71.03 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	$15.09B	11.36	33.96%	3.57%	5.21%	-3.74%
CRTO	75 Outperform	$1.41B	10.19	12.79%	―	-0.40%	36.44%
ZD	74 Outperform	$1.55B	25.98	3.56%	―	5.94%	-8.89%
IPG	73 Outperform	$9.79B	22.98	11.70%	4.90%	-5.16%	-56.06%
STGW	73 Outperform	$1.45B	504.50	-0.32%	―	9.56%	―
WPP	66 Neutral	$5.68B	11.72	11.24%	9.04%	-1.89%	90.72%
Sector *	60 Neutral	$43.56B	4.52	-13.01%	4.07%	1.87%	-43.08%

Omnicom Group Corporate Events

Omnicom Group Announces Exchange Offer Results

On August 25, 2025, Omnicom Group Inc. and The Interpublic Group of Companies, Inc. announced the early participation results of Omnicom’s offers to exchange existing IPG notes for new senior notes and cash, as well as solicitations of consents to amend indentures governing the notes. As of August 22, 2025, Omnicom received consents from a majority of noteholders for each series, allowing the proposed amendments to proceed. The amendments will become operative upon the settlement date, expected shortly after the exchange offer expiration on September 9, 2025, contingent on the completion of Omnicom’s pending acquisition of IPG. If the merger is delayed, the expiration date may be extended.

Omnicom Group Announces Acquisition of Interpublic Group

On August 11, 2025, Omnicom Group Inc. announced its intention to acquire The Interpublic Group of Companies, Inc. (IPG) through a merger agreement dated December 8, 2024. As part of this acquisition, Omnicom has initiated exchange offers for all outstanding senior notes issued by IPG, offering up to $2.95 billion in new notes and cash. Concurrently, Omnicom is soliciting consents to amend the indentures governing these notes to eliminate certain covenants and provisions. This move is aimed at streamlining financial operations and is contingent upon the completion of the merger. Additionally, Omnicom plans to increase its revolving credit facility and retire IPG’s existing credit facility upon the merger’s completion.

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.

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.