Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $25.10B
• Dividend Yield: 3.68%
• Average Volume (3M): 4.45M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.69
• Revenue Growth: 4.13%
• EPS Growth: -7.84%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 2.24
• Shares Outstanding: 314,603,670
• 10 Day Avg. Volume: 3,737,050
• 30 Day Avg. Volume: 4,445,065
• PEG Ratio: 1.42
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 10.61
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 8.36
• 1Y Price Target: $91.50
• Price Target Upside: 14.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 9.97
• Revenue Forecast (FY): $26.53B

• Rating: 73 Outperform
• Price Target: $89.00 ▲(11.54% 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 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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.07B	15.69B	14.69B	14.29B	14.29B	13.17B
Gross Profit	2.80B	2.74B	2.50B	2.58B	2.53B	2.07B
EBITDA	2.45B	2.62B	2.42B	2.37B	2.41B	1.85B
Net Income	1.33B	1.48B	1.39B	1.30B	1.40B	951.20M
Balance Sheet
Total Assets	28.84B	29.62B	28.04B	27.00B	28.42B	27.65B
Cash, Cash Equivalents and Short-Term Investments	3.41B	4.34B	4.43B	4.34B	5.32B	5.60B
Total Debt	7.04B	6.87B	6.50B	6.70B	6.87B	6.93B
Total Liabilities	23.72B	24.45B	23.40B	22.84B	24.65B	24.07B
Stockholders Equity	4.61B	4.19B	3.62B	3.25B	3.27B	3.08B
Cash Flow
Free Cash Flow	1.67B	1.59B	1.34B	848.30M	1.28B	1.65B
Operating Cash Flow	1.83B	1.73B	1.42B	926.50M	1.95B	1.72B
Investing Cash Flow	-159.30M	-1.06B	79.10M	-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: Positive
• Last Price: 79.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 79.79 is above the 20-day moving average (MA) of 79.63, above the 50-day MA of 76.00, and above the 200-day MA of 74.30, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.99 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
CRTO	76 Outperform	$1.02B	6.54	15.37%	―	0.32%	69.78%
OMC	73 Outperform	$25.10B	11.78	31.17%	3.68%	4.13%	-7.84%
MGNI	68 Neutral	$2.07B	38.14	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.65B	85.53	3.80%	―	6.76%	1841.46%
WPP	64 Neutral	$4.57B	9.30	11.24%	9.15%	-1.89%	90.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Omnicom Group Corporate Events

Omnicom Group Finalizes Exchange Offers After Merger

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.

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

Omnicom Group Announces Leadership Changes Post-Acquisition

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.

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

Omnicom Completes Acquisition of Interpublic Group

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.

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

Omnicom Group Nears Completion of IPG Merger

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.

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

Omnicom Group Extends Merger Exchange Offer Deadline

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.

The most recent analyst rating on (OMC) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Reports Q3 Revenue Growth of 4%

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.