Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $14.84B
• Dividend Yield: 3.66%
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.86
• Revenue Growth: 5.21%
• EPS Growth: -3.74%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 2.05
• Shares Outstanding: 193,722,890
• 10 Day Avg. Volume: 2,846,533
• 30 Day Avg. Volume: 3,151,162
• 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: 1.27
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $87.40
• Price Target Upside: 14.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 81 Outperform
• Price Target: $89.00 ▲(16.19% Upside)

Omnicom Group's strong financial performance and strategic initiatives, including AI investments and acquisitions, are key strengths. The stock's reasonable valuation and attractive dividend yield further enhance its appeal. While technical indicators are neutral, the company's robust earnings call guidance supports a positive outlook.

Positive Factors

Strategic Acquisitions

The acquisition of Interpublic, with antitrust approval in 13 out of 18 jurisdictions, is expected to complete soon, promising $750 million in synergies. This strategic move enhances Omnicom's market position and operational scale, providing long-term competitive advantages.

AI and Technology Investments

Omnicom's investment in generative AI and agentic capabilities aims to enhance creativity and operational efficiency. This focus on technology positions the company to better meet client needs and drive growth, offering a durable competitive edge in the evolving marketing landscape.

Revenue Growth

Media and advertising segments grew 8%, driven by strong media business growth. This consistent revenue growth indicates robust demand for Omnicom's services and strengthens its competitive position in the advertising industry.

Negative Factors

Decline in Public Relations Revenue

A 9% decline in public relations revenue, particularly in the U.S., reflects challenges in maintaining client relationships and market share. This trend could impact Omnicom's revenue stability and growth potential in this segment over the medium term.

Challenges in Branding and Retail Commerce

A 17% decrease in branding and retail commerce due to market uncertainties and slow M&A activity highlights vulnerabilities in these segments. This could hinder Omnicom's ability to capitalize on new brand launches and rebranding projects, affecting future growth.

Macro Uncertainty Impact

Macro uncertainties have led to slower decision-making among clients, impacting the creative business segment. This environment could limit Omnicom's ability to secure new projects and maintain growth momentum, posing a risk to its long-term performance.

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: Neutral
• Last Price: 76.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 76.6 is below the 20-day moving average (MA) of 77.57, above the 50-day MA of 74.87, and below the 200-day MA of 77.91, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 30.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$14.84B	11.03	33.96%	3.66%	5.21%	-3.74%
CRTO	75 Outperform	1.30B	9.41	12.54%	―	-0.40%	36.44%
STGW	71 Outperform	1.35B	469.37	-0.22%	―	9.56%	0.00%
IPG	69 Neutral	9.62B	22.32	11.90%	5.03%	-5.16%	-56.06%
WPP	68 Neutral	5.73B	11.49	15.60%	9.14%	-1.89%	90.72%
MGNI	63 Neutral	3.40B	84.85	5.61%	―	5.52%	0.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Omnicom Group Corporate Events

Omnicom Group Extends Exchange Offers for Acquisition

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.

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.

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.

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.

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.