Omnicom Group Inc.
OMC
Services-Advertising Agencies
Mkt Cap
$18.45BPE
12.44Debt
$7.037BCash
$3.173BEV
$22.31BFCF
$1.247BP/E Ratio
12.44Debt
$7.037BCash
$3.173BEV
$22.31BFCF
$1.247BCharts data: {"Earnings":[{"time":"2014-12-30","value":1104000000},{"time":"2015-12-30","value":1093900000},{"time":"2016-12-30","value":1148600000},{"time":"2017-12-30","value":1088400000},{"time":"2018-12-30","value":1326400000},{"time":"2019-12-30","value":1339100000},{"time":"2020-12-30","value":945400000},{"time":"2021-12-30","value":1407800000},{"time":"2022-12-30","value":1316500000},{"time":"2023-12-30","value":1391400000}],"Sales":[{"time":"2014-12-30","value":15317800000},{"time":"2015-12-30","value":15134400000},{"time":"2016-12-30","value":15416900000},{"time":"2017-12-30","value":15273600000},{"time":"2018-12-30","value":15290200000},{"time":"2019-12-30","value":14953700000},{"time":"2020-12-30","value":13171100000},{"time":"2021-12-30","value":14289400000},{"time":"2022-12-30","value":14289100000},{"time":"2023-12-30","value":14692200000}],"Net Margins":[{"time":"2014-12-30","value":0.07207301309587538},{"time":"2015-12-30","value":0.07227904641082566},{"time":"2016-12-30","value":0.07450265617601463},{"time":"2017-12-30","value":0.07126021370207417},{"time":"2018-12-30","value":0.08674837477600031},{"time":"2019-12-30","value":0.08954974354173215},{"time":"2020-12-30","value":0.0717783632346577},{"time":"2021-12-30","value":0.098520581689924},{"time":"2022-12-30","value":0.09213316444002771},{"time":"2023-12-30","value":0.09470331196144893}],"Assets":[{"time":"2014-12-30","value":21559700000},{"time":"2015-12-30","value":22110700000},{"time":"2016-12-30","value":23165400000},{"time":"2017-12-30","value":24931200000},{"time":"2018-12-30","value":24617000000},{"time":"2019-12-30","value":26783400000},{"time":"2020-12-30","value":27647200000},{"time":"2021-12-30","value":28421800000},{"time":"2022-12-30","value":27002500000},{"time":"2023-12-30","value":28044600000}],"Stockholders Equity":[{"time":"2014-12-30","value":3321300000},{"time":"2015-12-30","value":2889400000},{"time":"2016-12-30","value":2659600000},{"time":"2017-12-30","value":3152200000},{"time":"2018-12-30","value":3106900000},{"time":"2019-12-30","value":3373700000},{"time":"2020-12-30","value":3576900000},{"time":"2021-12-30","value":3773700000},{"time":"2022-12-30","value":3776400000},{"time":"2023-12-30","value":4225100000}],"ROE":[{"time":"2014-12-30","value":0.33239996386956916},{"time":"2015-12-30","value":0.37859071087422996},{"time":"2016-12-30","value":0.43186945405324106},{"time":"2017-12-30","value":0.34528265972971256},{"time":"2018-12-30","value":0.4269207248382632},{"time":"2019-12-30","value":0.3969232593295195},{"time":"2020-12-30","value":0.26430708155106375},{"time":"2021-12-30","value":0.37305562180353496},{"time":"2022-12-30","value":0.34861243512339796},{"time":"2023-12-30","value":0.32931764928640744}],"ROA":[{"time":"2014-12-30","value":0.09289090293464194},{"time":"2015-12-30","value":0.08994740103207949},{"time":"2016-12-30","value":0.08855879889835704},{"time":"2017-12-30","value":0.08460884353741496},{"time":"2018-12-30","value":0.08899134744282407},{"time":"2019-12-30","value":0.0814907741362187},{"time":"2020-12-30","value":0.05899693278161984},{"time":"2021-12-30","value":0.07829201528404253},{"time":"2022-12-30","value":0.07977039163040459},{"time":"2023-12-30","value":0.07885296991221126}]}
Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and brand consulting, experiential, execution and support, 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 North and Latin America, Europe, the Middle East and Africa (EMEA), and Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.
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DCF
Discounted Cash Flow Valuation of Omnicom Group Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $1.247B | $1.161B | $1.082B | $1.007B | $938.1M | $873.7M | $813.6M | $757.7M | $705.7M | $657.2M | $612M | $6.12B |
| DCF | $1.01B | $817.9M | $662.3M | $536.4M | $434.4M | $351.8M | $284.9M | $230.7M | $186.8M | $151.3M | $1.513B | |
| Value | $6.179B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 2.6%
Earnings Stability 30%
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 7.2% | 7.5% | 7.1% | 8.7% | 9% | 7.2% | 9.9% | 9.2% | 9.5% | 10% |
| ROA | 9% | 8.9% | 8.5% | 8.9% | 8.1% | 5.9% | 7.8% | 8% | 7.9% | 8.6% |
| ROE | 38% | 43% | 35% | 43% | 40% | 26% | 37% | 35% | 33% | 36% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +8.89%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.21%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +7.77%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.1%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +35.65%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -1.5%.
Safety & Stabiliy
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 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 2.79 | 2.79 | 2.63 | 3.54 | 3.26 | 3.53 | 4.48 | 6.64 | 4.78 | 5.64 |
| Debt Equity | 1.90 | 1.85 | 1.56 | 1.74 | 1.70 | 1.63 | 1.52 | 1.49 | 1.52 | 1.70 |
| MIN | ||||||||||
| Graham Stability | - | - | 98% | 100% | 100% | 76% | 100% | 100% | 100% | 76% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 5.64.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.49.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.76.
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 | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | -0.69% | -0.79% | 3.7% | 2.8% | 0.29% |
| Net Income | 2.8% | 0.96% | 14% | 5.7% | 0.82% |
| Stockholders Equity | 6.8% | 6.3% | 5.7% | 12% | 1.8% |
| FCF | -3.8% | -2.5% | -6.6% | 58% | -1.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is -0.79%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is +0.29%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +0.96%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +0.82%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.34%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +1.75%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is -2.52%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -1.74%.