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Publicis Groupe SA (PUBGY)
OTHER OTC:PUBGY
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Publicis Groupe SA
(OTC:PUBGY)
Rating:77Outperform
Price Target:
$28.00
▲(14.33%Upside)
Publicis Groupe SA (PUBGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.51B
Dividend Yield3.08%
Average Volume (3M)178.51K
Price to Earnings (P/E)13.2
Beta (1Y)0.78
Revenue Growth10.50%
EPS Growth17.48%
CountryUS
Employees107,273
SectorCommunication Services
Sector Strength83
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.02
Shares Outstanding1,017,247,440
10 Day Avg. Volume0
30 Day Avg. Volume178,507
Financial Highlights & Ratios
PEG Ratio0.99
Price to Book (P/B)2.01
Price to Sales (P/S)0.00
P/FCF Ratio10.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.00Price Target Upside26.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Publicis Groupe SA Business Overview & Revenue Model
Company DescriptionPublicis Groupe SA is a global leader in marketing, communication, and digital transformation. Headquartered in Paris, France, the company operates through several sectors including advertising, public relations, media buying, and digital transformation. Publicis Groupe provides a wide range of services such as creative solutions, media planning and buying, digital and technology-driven operations, and data analytics, catering to a diverse clientele across various industries worldwide.
How the Company Makes MoneyPublicis Groupe SA generates revenue through a multi-faceted business model centered around its core services in marketing and communications. The company earns money primarily through fees charged for advertising services, media buying, and strategic consulting. Another significant revenue stream comes from digital transformation solutions, where the company leverages data analytics, customer experience management, and technology solutions to drive client success. Publicis Groupe also forms strategic partnerships and alliances, enhancing its service offerings and expanding its global reach. These key revenue streams are bolstered by long-term client relationships with major global brands, which contribute to a stable and diverse income base.
Publicis Groupe SA Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: -6.02%|
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
Publicis Groupe delivered a strong performance in H1 2025 with notable organic growth, improved margins, and significant new business wins. However, challenges in currency impacts, the IT consulting segment, and increased restructuring costs were noted. Despite these challenges, the achievements and positive metrics significantly outweigh the lowlights.Q2-2025 Updates
Positive Updates
Strong Organic Growth
Publicis Groupe reported an organic growth of 5.4% for H1 2025, with Q2 alone showing a growth of 5.9%. This growth is ahead of their 5-year CAGR of 4.9%.
Operating Margin Improvement
The operating margin reached a record 17.4% in H1 2025, improving the gap over competitors by close to 600 basis points.
Record Free Cash Flow
Free cash flow before change in working capital was EUR 828 million, up 11.3% from the previous year.
Successful New Business Wins
Publicis Groupe achieved net billings of $5.2 billion in H1 2025, with a 68% increase compared to H1 2024.
Strong Geographic Performance
All regions posted strong organic growth: North America (5.8%), Europe (4.6%), Asia Pacific (5.7%), Middle East and Africa (8.8%), and Latin America (19.8%).
Creative Segment Success
The creative segment posted high single-digit growth, driven by significant new business wins and expansions.
Negative Updates
Impact of Currency Movements
Net revenue was negatively impacted by currency movements, which accounted for a 420 basis-point negative impact in Q2 2025.
Challenges in IT Consulting
Publicis Sapient faced challenges with clients' wait-and-see attitudes towards CapEx spending, remaining negative in H1, though slightly improving in Q2.
Increased Restructuring Costs
Restructuring charges increased by EUR 22 million to EUR 63 million in H1 2025 due to talent upgrades.
Company Guidance
In the recent conference call, Publicis Groupe provided detailed guidance, presenting several key metrics to highlight their robust performance and optimistic outlook. For the first half of 2025, the company reported an organic growth of 5.4%, with Q2 alone achieving a 5.9% increase. Operating margin for H1 stood at a high 17.4%, underscoring their strong cost discipline. Headline EPS increased by 3.8% year-on-year, reaching EUR 3.51, while free cash flow before working capital changes grew by 11.3% to EUR 828 million. Publicis has also raised its full-year net revenue organic growth guidance to nearly 5%, up from its initial range of 4% to 5%, driven by significant net new business wins. Regionally, North America and Europe showed strong performance with organic growth of 5.8% and 4.6%, respectively, while Asia Pacific achieved 5.7% growth. The company continues to invest in AI, with EUR 55 million already spent, and expects this to be a major driver in their ongoing strategy to gain market share and enhance their competitive edge.Publicis Groupe SA Financial Statement Overview
Summary
Publicis Groupe SA presents a strong financial performance with solid revenue growth and profitability. The income statement shows consistent revenue growth and improving margins. The balance sheet is stable with good leverage management and strong equity support. Cash flow management is effective, ensuring sufficient liquidity and strategic flexibility.Income Statement
Publicis Groupe SA demonstrates strong income statement metrics, with consistent revenue growth and improving margins. The gross profit margin is robust, with a notable increase in net profit margin from previous years, reflecting improved operational efficiency. The EBIT and EBITDA margins are healthy, indicating solid profitability. The revenue growth rate from 2023 to 2024 is approximately 8.29%, which is a positive indicator of business expansion.86
Very Positive
Balance Sheet
The balance sheet shows a stable financial structure with a manageable debt-to-equity ratio. The company's equity ratio is healthy, suggesting good leverage management. Return on equity (ROE) is strong, reflecting effective use of shareholder funds to generate profits. The overall stability is reinforced by sufficient equity supporting the company's asset base.79
Positive
Cash Flow
Publicis Groupe SA exhibits strong cash flow metrics. The operating cash flow to net income ratio indicates efficient conversion of earnings into cash. Free cash flow growth is positive, supporting strategic reinvestment and shareholder returns. The free cash flow to net income ratio is healthy, suggesting adequate cash generation relative to profitability.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.03B | 14.80B | 14.20B | 11.74B | 10.79B |
| Gross Profit | 16.03B | 6.40B | 2.06B | 1.64B | 1.39B |
| EBITDA | 3.15B | 2.68B | 2.88B | 2.12B | 1.94B |
| Net Income | 1.66B | 1.31B | 1.22B | 1.03B | 576.00M |
Balance Sheet | |||||
| Total Assets | 39.85B | 36.72B | 35.90B | 32.85B | 30.16B |
| Cash, Cash Equivalents and Short-Term Investments | 3.82B | 4.25B | 4.62B | 3.66B | 3.70B |
| Total Debt | 5.17B | 5.54B | 6.17B | 5.72B | 6.65B |
| Total Liabilities | 28.82B | 26.97B | 26.30B | 24.29B | 23.00B |
| Stockholders Equity | 11.06B | 9.79B | 9.63B | 8.59B | 7.18B |
Cash Flow | |||||
| Free Cash Flow | 2.06B | 1.87B | 2.20B | 1.57B | 2.69B |
| Operating Cash Flow | 2.30B | 2.05B | 2.40B | 1.71B | 2.85B |
| Investing Cash Flow | -1.12B | -348.00M | -752.00M | -419.00M | -319.00M |
| Financing Cash Flow | -2.01B | -1.75B | -980.00M | -1.58B | -1.86B |
Publicis Groupe SA Technical Analysis
Negative
24.49
Price Trends
26.38
Negative
25.14
Negative
25.63
Negative
Market Momentum
-0.37
Positive
34.58
Neutral
6.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUBGY, the sentiment is Negative. The current price of 24.49 is below the 20-day moving average (MA) of 26.38, below the 50-day MA of 26.38, and below the 200-day MA of 25.63, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 34.58 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PUBGY.
Publicis Groupe SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.77B | 10.19 | 33.96% | 3.94% | 5.21% | -3.74% | |
77 Outperform | $24.51B | 13.22 | 16.98% | 3.08% | 10.50% | 17.48% | |
71 Outperform | $1.32B | 966.67 | 0.19% | ― | 9.86% | ― | |
70 Outperform | $1.23B | 9.39 | 13.46% | ― | -1.18% | 100.33% | |
69 Neutral | $8.94B | 18.48 | 13.33% | 5.46% | -3.18% | -53.36% | |
66 Neutral | $6.06B | 8.66 | 16.04% | 11.91% | 2.07% | 407.27% | |
62 Neutral | $41.14B | -1.94 | -12.05% | 3.98% | 2.10% | -69.66% |
* Communication Services Sector Average
Performance Comparison
PUBGY
Publicis Groupe SA
24.49
-1.78
-6.78%
IPG
Interpublic Group of Companies
24.18
-4.13
-14.59%
STGW
Stagwell
4.93
-2.12
-30.07%
OMC
Omnicom Group
71.06
-17.73
-19.97%
WPP
WPP
27.83
-18.04
-39.33%
CRTO
Criteo SA
23.04
-21.72
-48.53%
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.