Interpublic Group Of Companies, Inc.

Consumer Discretionary
Advertising
www.interpublic.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $11.24B
PE 14
Debt $2.94B
Cash $1.54B
EV $12.65B
FCF $922.50M

Earnings

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Sales & Net Margins

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Earnings	$808.20M
EBIT	$1.43B
ROE	21%
ROA	8%
FCF	$922.50M
Equity	$3.78B
Growth Stability	57%
PE	13.91
PEG	0.8
PB	2.97
P/FCF	12.19
P/S	1.04
Price/Cash	0.14
Debt/Equity	0.78
Debt/FCF	3.19
Net Margins	4%
Gross Margins	17%
Op. Margins	13%
Earnings CAGR	9%
Sales Growth YoY	-2%
Sales Growth QoQ	-3%
Sales CAGR	5%
FCF CAGR	7%
Equity CAGR	9%
Earnings Stability	0.56
Earnings Growth YoY	-92%
Earnings Growth QoQ	-91%

Earnings CAGR 5Y	17%
Sales CAGR 5Y	3%
FCF CAGR 5Y	-18%
Equity CAGR 5Y	10%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	-18%
Equity CAGR 3Y	4%
Market Cap	$11.24B
Revenue	$10.86B
Dividend Yield	4%
Payout Ratio	61%
Assets	$17.08B
Total Debt	$2.94B
Cash	$1.54B
Shares Outstanding	373.9M
EV	12.65B
Earnings Score	72%
Moat Score	87%
Safety Score	73%
Final Score	77%
Working Capital	792.1M
Current Ratio	1.09
Shares Growth 3y	-2%
Equity Growth QoQ	-3%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Interpublic Group is among the world's largest ad holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates more than 75% of its revenue from developed regions such as the United States and Europe.

SEC Filings

Direct access to Interpublic Group Of Companies, Inc. (IPG) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Interpublic Group Of Companies, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Interpublic Group Of Companies, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 9%

Stability 56%

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Interpublic Group Of Companies, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Interpublic Group Of Companies, Inc..

Years

Calculation mode

= $15B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$923M	$991M	$1.1B	$1.1B	$1.2B	$1.3B	$1.4B	$1.5B	$1.6B	$1.8B	$1.9B	$19B
DCF		$901M	$879M	$859M	$838M	$818M	$799M	$780M	$762M	$744M	$726M	$7.3B
Value	$15B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	6%	6%	8%	7%	6%	6%	4%	9%	9%	10%	4%
ROA	-	7%	8%	8%	6%	6%	3%	7%	8%	8%	8%
ROE	-	23%	30%	26%	25%	23%	12%	27%	25%	27%	21%

Bad Net Margins (4.4%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	3.44	6.17	1.89	9.62	2.84	2.33	1.57	6.77	9.1	3.19
Debt over Equity	0.81	0.88	0.94	0.61	1.53	1.34	1.33	0.82	0.79	0.85	0.78
Growth Stability	-	-	-	100%	100%	100%	57%	100%	100%	100%	57%

Neutral Debt/FCF ratio (3.19)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.78)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (57%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	1%	3%	0%	23%	5%	-11%	13%	7%	-0%	3%
Earnings YoY growth	-	-5%	34%	-5%	7%	6%	-46%	171%	-2%	17%	17%
Equity YoY growth	-	-7%	3%	9%	9%	16%	4%	22%	3%	8%	10%
FCF YoY growth	-	-37%	-39%	132%	-47%	243%	26%	12%	-77%	-13%	-18%