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Omnicom Group Inc (OMC)
:OMC

Omnicom Group (OMC) AI Stock Analysis

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OMC

Omnicom Group

(NYSE:OMC)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$82.00
▲(11.96% Upside)
Omnicom Group's overall score reflects strong financial performance and attractive valuation, bolstered by strategic acquisitions and leadership changes. However, technical indicators suggest caution, and challenges in certain segments may impact future growth.
Positive Factors
Strategic Acquisition
The acquisition of Interpublic Group positions Omnicom as a leader in marketing and sales, enhancing market position and operational capabilities.
Technological Advancements
OmniPlus leverages AI to improve client outcomes, demonstrating Omnicom's commitment to innovation and maintaining a competitive edge in marketing technology.
Strong Revenue Growth
Consistent revenue growth indicates robust demand for Omnicom's services and effective market strategies, supporting long-term business expansion.
Negative Factors
High Leverage
Significant leverage could limit financial flexibility and increase risk, necessitating careful debt management to ensure long-term stability.
Declining Free Cash Flow
A decline in free cash flow growth may impact liquidity and the ability to invest in growth opportunities, affecting future financial health.
Segment Challenges
Revenue declines in key segments like healthcare and branding could hinder overall growth, requiring strategic adjustments to address these challenges.

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, operating through a diverse portfolio of agencies and services. The company is structured into several key sectors including advertising, customer relationship management, public relations, and specialty communications. Omnicom delivers a wide array of core products and services such as brand management, media planning and buying, digital marketing, and strategic consulting, serving a broad spectrum of clients across various industries worldwide.
How the Company Makes MoneyOmnicom generates revenue primarily through its extensive range of advertising and marketing services, which are billed on a project basis, retainer agreements, or performance-based contracts. Key revenue streams include traditional advertising (creative development and media buying), digital marketing services (including social media and search engine marketing), and public relations services. The company also earns revenue from consulting and data analytics, helping clients make informed marketing decisions. Significant partnerships with major global brands across various sectors enhance its earnings potential, as these relationships often lead to long-term contracts and repeat business. Additionally, Omnicom capitalizes on market trends by investing in technology and innovation, thus maintaining a competitive edge in the evolving marketing landscape.

Omnicom Group Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Chart Insights
Data provided by:The Fly

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 shows strong revenue growth and profitability with effective equity utilization. However, high leverage and declining free cash flow growth present potential risks. The company should focus on improving operational efficiency and managing debt levels to sustain long-term financial health.
Income Statement
85
Very Positive
Omnicom Group has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 9.71% compared to the previous year. The company maintains solid profitability with a gross profit margin of 17.56% and a net profit margin of 8.31% for the TTM. However, there has been a slight decline in EBIT and EBITDA margins compared to the previous year, indicating some pressure on operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a high debt-to-equity ratio of 1.53, which is an improvement from previous years but still indicates significant leverage. Return on equity is robust at 30.22%, reflecting effective use of equity to generate profits. The equity ratio stands at 16.00%, suggesting a moderate level of equity financing relative to total assets.
Cash Flow
65
Positive
Cash flow analysis reveals a decline in free cash flow growth by 5.60% in the TTM, which could be a concern for future liquidity. The operating cash flow to net income ratio is 1.11, indicating that operating cash flow adequately covers net income. The free cash flow to net income ratio is strong at 91.36%, showing efficient cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.07B15.69B14.69B14.29B14.29B13.17B
Gross Profit2.80B2.74B2.50B2.58B2.53B2.07B
EBITDA2.45B2.62B2.42B2.37B2.41B1.85B
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-159.30M-1.06B79.10M-380.90M-709.20M-136.10M
Financing Cash Flow-1.75B-582.00M-1.39B-1.36B-1.39B-408.40M

Omnicom Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price73.24
Price Trends
50DMA
75.36
Negative
100DMA
75.49
Negative
200DMA
74.96
Negative
Market Momentum
MACD
-0.72
Negative
RSI
49.53
Neutral
STOCH
63.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMC, the sentiment is Neutral. The current price of 73.24 is above the 20-day moving average (MA) of 72.73, below the 50-day MA of 75.36, and below the 200-day MA of 74.96, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 49.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
77
Outperform
$1.07B6.9615.37%0.32%69.78%
73
Outperform
$23.21B10.8031.17%3.82%4.13%-7.84%
68
Neutral
$2.14B41.147.56%6.27%226.16%
65
Neutral
$1.41B74.583.80%6.76%1841.46%
64
Neutral
$4.25B8.4711.24%9.54%-1.89%90.72%
64
Neutral
14.79%5.37%-5.96%-30.61%
60
Neutral
$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
73.24
-15.69
-17.64%
IPG
Interpublic Group of Companies
24.57
-4.40
-15.19%
STGW
Stagwell
5.72
-1.81
-24.04%
WPP
WPP
21.16
-31.76
-60.02%
CRTO
Criteo SA
20.74
-21.40
-50.78%
MGNI
Magnite
15.51
-1.39
-8.22%

Omnicom Group Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Omnicom Group Finalizes Exchange Offers After Merger
Neutral
Dec 2, 2025

Omnicom Group Inc. completed its merger with The Interpublic Group of Companies, Inc. on November 26, 2025, and subsequently finalized exchange offers and consent solicitations on December 2, 2025. This involved exchanging $2.95 billion of IPG’s existing notes for new Omnicom notes and cash, alongside amending certain covenants and provisions. The issuance of new notes is expected to impact Omnicom’s financial structure and market positioning, with implications for stakeholders regarding the company’s debt management and strategic direction.

Executive/Board ChangesM&A TransactionsDividendsBusiness Operations and Strategy
Omnicom Group Announces Leadership Changes Post-Acquisition
Positive
Dec 1, 2025

On December 1, 2025, Omnicom Group Inc. announced its strategic plans and executive leadership changes following the acquisition of The Interpublic Group of Companies, Inc. The company has engaged with its largest clients to ensure a smooth transition and plans to unveil its new strategy and capabilities at the CES 2026 in January. Omnicom will also provide updates on its integration and synergy expectations during its year-end earnings announcement in February 2026, followed by an investor day to discuss capital allocation strategies. The company has increased its dividend, reflecting confidence in its cash generation and synergy capture.

Executive/Board ChangesM&A Transactions
Omnicom Completes Acquisition of Interpublic Group
Positive
Nov 26, 2025

On November 26, 2025, Omnicom announced the completion of its acquisition of The Interpublic Group of Companies, creating the world’s leading marketing and sales company. The merger, which involved an exchange of shares, positions Omnicom as a modern leader in marketing and sales, with a combined revenue exceeding $25 billion. The company aims to set a new standard in the industry by integrating data, creativity, and technology to drive sustainable growth. The merger also resulted in changes to the company’s leadership and board of directors, with Philippe Krakowsky appointed as Co-President and Co-Chief Operating Officer.

M&A TransactionsBusiness Operations and Strategy
Omnicom Group Nears Completion of IPG Merger
Neutral
Nov 26, 2025

On August 11, 2025, Omnicom Group Inc. initiated offers to exchange outstanding notes issued by The Interpublic Group of Companies, Inc. (IPG) for up to $2.95 billion in new senior notes. This move is part of Omnicom’s pending merger with IPG, which is expected to be completed by November 26, 2025, following regulatory approvals. The merger will see IPG become a wholly owned subsidiary of Omnicom, with IPG shareholders receiving Omnicom shares. The merger is anticipated to enhance Omnicom’s market position by integrating IPG’s assets and operations, although the final financial impacts remain subject to change as further analyses are conducted.

M&A Transactions
Omnicom Group Extends Merger Exchange Offer Deadline
Neutral
Oct 30, 2025

On October 30, 2025, Omnicom Group Inc. and The Interpublic Group of Companies, Inc. announced an extension of the expiration date for exchange offers and consent solicitations related to their merger, now expected to close by the end of November. The extension allows more time for the exchange of IPG’s outstanding notes for new Omnicom notes, contingent on the merger’s completion. This development highlights the ongoing complexities and regulatory challenges in the merger process, which could impact both companies’ operations and stakeholder interests.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
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.

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.

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.

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: Dec 09, 2025