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Omnicom Group (OMC)
NYSE:OMC
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Omnicom Group (OMC) AI Stock Analysis

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OMC

Omnicom Group

(NYSE:OMC)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$86.00
▲(14.30% Upside)
Omnicom Group's strong financial performance, reasonable valuation, and positive earnings call sentiment are key strengths. However, high leverage and challenges in certain business segments present risks. The technical indicators suggest a neutral trend, contributing to a balanced overall score.
Positive Factors
Revenue Growth
Consistent organic revenue growth indicates a stable demand for Omnicom's services, reflecting its strong market position and ability to meet client needs.
Technological Innovation
The introduction of OmniPlus positions Omnicom at the forefront of technological innovation, enhancing service delivery and client outcomes through advanced data and AI capabilities.
Acquisition Strategy
The strategic acquisition of Interpublic is expected to enhance Omnicom's market presence and operational capabilities, driving long-term growth and competitive advantage.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting Omnicom's ability to invest in growth opportunities and weather economic downturns.
Declining Free Cash Flow
A decline in free cash flow growth may constrain Omnicom's ability to fund operations, dividends, and strategic investments, affecting long-term financial health.
Segment Revenue Declines
Revenue declines in key segments like public relations highlight potential vulnerabilities in Omnicom's business model, which may affect overall growth and profitability.

Omnicom Group (OMC) vs. SPDR S&P 500 ETF (SPY)

Omnicom Group Business Overview & Revenue Model

Company DescriptionOmnicom Group Inc. is a global leader in marketing and corporate communications, headquartered in New York City. The company operates through a variety of sectors, including advertising, customer relationship management (CRM), public relations, and specialty services. It provides a comprehensive suite of services, including creative advertising, media planning and buying, digital marketing, and brand consulting, catering to a diverse range of clients across various industries.
How the Company Makes MoneyOmnicom 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 Earnings Call Summary

Earnings Call Date:Oct 21, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The call highlighted consistent financial performance with organic growth and successful acquisition progress, alongside significant new business wins and technological advancements. However, some segments faced revenue declines, and there were challenges with interest and tax rates.
Q3-2025 Updates
Positive Updates
Organic Growth and Revenue
Organic growth was 2.6% for the quarter and 3% for the first nine months, in line with the annual guidance. Non-GAAP adjusted EBITDA was $551.6 million with a margin of 16.1% for the quarter, up 10 basis points from last year.
Acquisition Progress
Secured antitrust clearance for the acquisition of Interpublic from all jurisdictions except the EU, with an expected closing in late November.
New Business Wins
Significant new business wins include American Express, Porsche, InterSnack, White Castle, OpenAI, Amgen, Bayer, Anthropic, and Paramount.
Technology and Innovation
Launch of OmniPlus, a new marketing operating system integrating data assets and generative AI, is planned for CES 2026.
Negative Updates
Decline in Public Relations Revenue
Public relations revenue declined 8%, primarily due to the absence of US national election-related revenue.
Challenges in Healthcare and Branding
Healthcare was down 2% due to products coming off patent protection, and Branding and Retail Commerce was down 17% due to market conditions.
Interest and Tax Rate Challenges
Net interest expense increased due to lower interest income. The reported income tax rate increased to 27.2% due to non-deductible acquisition-related costs.
Company Guidance
During the Omnicom Group Inc. Third Quarter 2025 Earnings Conference Call, the company reported several key performance metrics. Organic growth for the quarter was 2.6%, with a year-to-date growth of 3%, aligning with their annual guidance. Non-GAAP adjusted EBITDA was $551.6 million, reflecting a margin of 16.1%, a 10 basis point increase from the previous year. Non-GAAP adjusted net income per share rose by 10.3% to $2.24 compared to 2024. The company highlighted strong cash flow supporting dividends, acquisitions, and share repurchases, maintaining a robust balance sheet. Omnicom also discussed their pending acquisition of Interpublic, expecting to close the deal by late November, with integration teams preparing for a seamless transition. The integration plans include launching OmniPlus, a next-generation marketing operating system, and leveraging generative AI to accelerate client outcomes. The call also noted revenue growth in media and advertising at 9%, while challenges were observed in creative, precision marketing, public relations, healthcare, branding, retail commerce, and experiential sectors. The company remains confident in achieving more than the expected synergies from the acquisition and continues to see strong client support and new business wins.

Omnicom Group Financial Statement Overview

Summary
Omnicom Group exhibits strong financial health with consistent revenue growth and efficient equity utilization. The company maintains healthy profit margins and robust cash flow performance, despite some leverage and room for improvement in cash conversion efficiency.
Income Statement
85
Very Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.07B15.69B14.69B14.29B14.29B13.17B
Gross Profit2.80B2.74B2.50B2.58B2.53B2.07B
EBITDA2.44B2.62B2.42B2.37B2.41B1.85B
Net Income1.33B1.48B1.39B1.30B1.40B951.20M
Balance Sheet
Total Assets28.84B29.62B28.04B27.00B28.42B27.65B
Cash, Cash Equivalents and Short-Term Investments3.41B4.34B4.43B4.34B5.32B5.60B
Total Debt7.04B6.87B6.50B6.70B6.87B6.93B
Total Liabilities23.72B24.45B23.40B22.84B24.65B24.07B
Stockholders Equity4.61B4.19B3.62B3.25B3.27B3.08B
Cash Flow
Free Cash Flow1.67B1.59B1.34B848.30M1.28B1.65B
Operating Cash Flow1.83B1.73B1.42B926.50M1.95B1.72B
Investing Cash Flow-126.20M-1.06B79.10M-380.90M-709.20M-136.10M
Financing Cash Flow-1.78B-582.00M-1.39B-1.36B-1.39B-408.40M

Omnicom Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price75.24
Price Trends
50DMA
77.71
Negative
100DMA
75.04
Positive
200DMA
76.31
Negative
Market Momentum
MACD
0.12
Positive
RSI
41.50
Neutral
STOCH
17.39
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 75.24 is below the 20-day moving average (MA) of 78.22, below the 50-day MA of 77.71, and below the 200-day MA of 76.31, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMC.

Omnicom Group Risk Analysis

Omnicom Group disclosed 28 risk factors in its most recent earnings report. Omnicom Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Omnicom Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$1.16B9.2912.79%-0.40%36.44%
$14.52B11.3531.17%3.72%4.13%-7.84%
$5.14B10.5511.24%8.71%-1.89%90.72%
$1.23B427.93-0.32%9.56%
$2.83B70.765.82%5.52%
$9.44B22.3211.70%5.12%-5.16%-56.06%
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OMC
Omnicom Group
75.24
-22.28
-22.85%
IPG
Interpublic Group of Companies
25.76
-2.23
-7.97%
STGW
Stagwell
4.75
-1.46
-23.51%
WPP
WPP
23.43
-25.85
-52.46%
CRTO
Criteo SA
22.17
-11.51
-34.17%
MGNI
Magnite
18.64
6.16
49.36%

Omnicom Group Corporate Events

Omnicom Group Inc. Highlights Growth and Innovation in Earnings Call
Oct 23, 2025

Omnicom Group Inc. recently held its earnings call, highlighting a generally positive sentiment with consistent financial performance and organic growth. The company showcased successful acquisition progress and significant new business wins, alongside advancements in technology. However, certain segments faced revenue declines, and challenges with interest and tax rates were noted.

Omnicom Group Reports Q3 2025 Financial Results
Oct 22, 2025

Omnicom Group Inc. is a leading provider of creative marketing and sales solutions, operating in the advertising and communications sector with a global presence across more than 70 countries.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Omnicom Reports Q3 Revenue Growth of 4%
Positive
Oct 21, 2025

On October 21, 2025, Omnicom announced its third-quarter financial results, reporting a revenue increase of 4.0% to $4.0 billion and a net income of $341.3 million. The company is set to finalize its acquisition of The Interpublic Group of Companies, Inc. next month, which is expected to create the world’s leading marketing and sales company. This strategic move aims to enhance Omnicom’s operational efficiency and growth potential, benefiting clients, employees, and shareholders.

The most recent analyst rating on (OMC) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Omnicom Group Nears Completion of IPG Acquisition
Neutral
Sep 30, 2025

On September 30, 2025, Omnicom Group Inc. and The Interpublic Group of Companies, Inc. announced that the regulatory approval process for Omnicom’s pending acquisition of IPG has been completed in all required jurisdictions except Mexico and the European Union. The acquisition is expected to close by December 31, 2025. Additionally, Omnicom extended the expiration date of its exchange offers and consent solicitations for IPG’s outstanding notes to October 31, 2025. This acquisition could impact the companies’ operations, potentially leading to challenges such as integration costs, loss of clients, and regulatory hurdles, but also offers the potential for expanded operations and market reach.

The most recent analyst rating on (OMC) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

M&A Transactions
Omnicom Group Extends Exchange Offers for Acquisition
Neutral
Sep 9, 2025

On September 9, 2025, Omnicom Group Inc. announced the extension of the expiration date for its Exchange Offers and Consent Solicitations related to its pending acquisition of The Interpublic Group of Companies, Inc. The expiration date has been moved from September 9, 2025, to September 30, 2025, to accommodate the completion of the merger. This extension allows Omnicom to continue its efforts to exchange outstanding IPG notes for new senior notes and cash, while also seeking consents to amend the indentures governing these notes. The merger is expected to be completed within the year, and the extension ensures that the settlement date aligns with the merger’s completion. However, the extension may lead to reduced liquidity for the existing IPG notes that are not exchanged, and the proposed amendments could decrease protections for remaining noteholders.

The most recent analyst rating on (OMC) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Omnicom Group Announces Exchange Offer Results
Neutral
Aug 25, 2025

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.

The most recent analyst rating on (OMC) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Omnicom Group Announces Acquisition of Interpublic Group
Neutral
Aug 11, 2025

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.

The most recent analyst rating on (OMC) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025