Omnicom Stock Analysis

OMC
 Stock
  

USD 73.22  0.21  0.29%   

The small slip in market price for the last few months may encourage investors to take a closer look at the company as it is trading at a share price of 73.22 on very low momentum in trading volume. The company directors and management did not add much value to Omnicom investors in July. However, diversifying your holdings with Omnicom Group or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.01. The current volatility is consistent with the ongoing market swings in July 2022 as well as with Omnicom unsystematic, company-specific events.
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The Omnicom stock analysis report makes it easy to digest most publicly released information about Omnicom and get updates on important government artifacts, including earning estimates, SEC corporate filings, and announcements. Omnicom Stock analysis module also helps to analyze the Omnicom price relationship with some important fundamental indicators such as market cap and management efficiency.

Omnicom Stock Analysis Notes

About 97.0% of the company shares are owned by institutional investors. The book value of Omnicom was now reported as 15.43. The company has Price/Earnings To Growth (PEG) ratio of 1.0. Omnicom Group recorded earning per share (EPS) of 6.42. The entity last dividend was issued on the 20th of September 2022. The firm had 2:1 split on the 26th of June 2007. Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. The company was incorporated in 1944 and is based in New York, New York. Omnicom operates under Advertising Agencies classification in the United States and is traded on New York Stock Exchange. It employs 71700 people. To find out more about Omnicom Group contact John Wren at 212 415-3393 or learn more at www.omnicomgroup.com.

Omnicom Group Investment Alerts

Many investors view ongoing market volatility as an opportunity to purchase more stocks at a favorable price or short it to generate a bearish trend profit opportunity. If you are one of those investors, make sure you clearly understand the position you are entering. Omnicom's investment alerts are automatically generated signals that are significant enough to either complement your investing judgment regarding Omnicom Group or challenge it. These alerts can help you understand what you are buying and avoid costly mistakes.
Omnicom Group generated a negative expected return over the last 90 days
The company has 6.5 B in debt with debt to equity (D/E) ratio of 1.73, which is OK given its current industry classification. Omnicom Group has a current ratio of 0.93, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Omnicom until it has trouble settling it off, either with new capital or with free cash flow. So, Omnicom's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Omnicom Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Omnicom to invest in growth at high rates of return. When we think about Omnicom's use of debt, we should always consider it together with cash and equity.
Over 97.0% of Omnicom shares are owned by institutional investors
On 8th of July 2022 Omnicom paid $ 0.7 per share dividend to its current shareholders
Latest headline from MacroaxisInsider: Payment of 435 shares by Rochelle Tarlowe of Omnicom subject to Rule 16b-3

Omnicom Group Upcoming and Recent Events

Earnings reports are used by Omnicom to provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Every quarterly earnings report provides investors with three things: an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Omnicom previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
Upcoming Quarterly Report17th of February 2022
Next Financial Report19th of April 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End17th of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Omnicom Largest EPS Surprises

Earnings surprises can significantly impact Omnicom's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1996-10-24
1996-09-300.10.110.0110 
2009-04-27
2009-03-310.440.530.0920 
2011-04-19
2011-03-310.590.690.116 
View All Earnings Estimates

Omnicom Thematic Classifications

In addition to having Omnicom stock in your portfolios, you can add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your favorite investment opportunity, you can then obtain an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility. If you are a result-oriented investor, you can benefit from optimizing one of our existing themes to build an efficient portfolio against your specific investing outlook.
Advertising
Advertising and advertising agencies

Omnicom Market Capitalization

The company currently falls under 'Large-Cap' category with total capitalization of 15.42 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Omnicom's market, we take the total number of its shares issued and multiply it by Omnicom's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and these looking for more risk prefer small-cap and mid-cap equities.

Omnicom Profitablity

Omnicom's profitability indicators refer to fundamental financial ratios that showcase Omnicom's ability to generate income relative to its revenue or operating costs. If, let's say, Omnicom is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Omnicom's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Omnicom's profitability requires more research than a typical breakdown of Omnicom's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
The company has Net Profit Margin of 9.07 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 16.49 %, which entails that for every 100 dollars of revenue, it generated 0.16 of operating income.
Last ReportedProjected for 2022
Return on Investment 24.61  23.61 
Return on Average Assets 5.02  4.64 
Return on Average Equity 44.31  39.21 
Return on Invested Capital 0.47  0.59 
Return on Sales 0.16  0.16 

Management Efficiency

The entity has Return on Asset of 5.28 % which means that on every $100 spent on asset, it made $5.28 of profit. This is considered to be average in the sector. In the same way, it shows return on shareholders equity (ROE) of 35.4 %, implying that it generated $35.4 on every 100 dollars invested. Omnicom management efficiency ratios could be used to measure how well omnicom group manages its routine affairs as well as how well it operates its assets and liabilities. The current year Return on Invested Capital is expected to grow to 0.59, whereas Return on Investment is forecasted to decline to 23.61. Omnicom Goodwill and Intangible Assets are projected to increase significantly based on the last few years of reporting. The past year's Goodwill and Intangible Assets were at 11.25 Billion. The current year Revenue to Assets is expected to grow to 0.62, whereas Total Assets are forecasted to decline to about 24.9 B.
Last ReportedProjected for 2022
Book Value per Share 11.80  11.19 
Enterprise Value over EBIT 9.00  9.20 
Enterprise Value over EBITDA 10.71  10.96 
Price to Book Value 7.11  7.16 
Tangible Assets Book Value per Share 89.81  79.14 
Enterprise Value24.8 B24.4 B
Tangible Asset Value19.6 B18.1 B

Technical Drivers

As of the 19th of August, Omnicom holds the coefficient of variation of (5,157), and Risk Adjusted Performance of (0.019971). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Omnicom, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We have collected data for nineteen technical drivers for Omnicom Group, which can be compared to its competitors. Please check Omnicom Group treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Omnicom Group is priced some-what accurately, providing market reflects its current price of 73.22 per share. Given that Omnicom has jensen alpha of (0.14), we recommend you to check out Omnicom Group's recent market performance to make sure the company can sustain itself at a future point.

Omnicom Group Price Movement Analysis

Execute Study
The output start index for this execution was twenty-three with a total number of output elements of thirty-eight. The Bollinger Bands is very popular indicator that was developed by John Bollinger. It consist of three lines. Omnicom middle band is a simple moving average of its typical price. The upper and lower bands are (N) standard deviations above and below the middle band. The bands widen and narrow when the volatility of the price is higher or lower, respectively. The upper and lower bands can also be interpreted as price targets for Omnicom Group. When the price bounces off of the lower band and crosses the middle band, then the upper band becomes the price target.
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Omnicom Group Insider Trading Activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Omnicom insiders, such as employees or executives, is commonly permitted as long as it does not rely on Omnicom's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Omnicom insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Omnicom Outstanding Bonds

Omnicom issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Omnicom Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Omnicom bonds can be classified according to their maturity, which is the date when Omnicom Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Omnicom Technical and Predictive Indicators

Omnicom Forecast Models

Omnicom time-series forecasting models is one of many Omnicom's stock analysis techniquest aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Omnicom's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

About Omnicom Stock Analysis

Stock analysis is the technique used by a trader or investor to examine and evaluate how Omnicom prices is reacting to, or reflecting on a current market direction and economic conditions. It can be used to make informed decisions about market timing, and when buying or selling Omnicom shares will generate the highest return on investment. We also built our stock analysis module to help investors to gain an insight into the world economy as a whole, the stock market, thematic ideas, a specific sector, or an individual Stock such as Omnicom. By using and applying Omnicom Stock analysis, traders can create a robust methodology for identifying Omnicom entry and exit points for their positions.
Last ReportedProjected for 2022
Operating Margin 15.38  13.58 
EBITDA Margin 15.94  14.55 
Gross Margin 19.52  23.22 
Profit Margin 9.85  8.37 

Current Omnicom Analysis - Recommendations

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Omnicom analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Omnicom analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target PriceAdvice# of Analysts
79.33Hold3Odds
Omnicom Group current and past analyst recommendations published by a number of research institutions as well as average analyst consensus.
Most Omnicom analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Omnicom stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Omnicom Group, talking to its executives and customers, or listening to Omnicom conference calls.
Omnicom Analyst Advice Details

Omnicom Stock Analysis Indicators

Omnicom Group stock analysis indicators help investors evaluate how Omnicom stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing and determine when trading Omnicom shares will generate the highest return on investment. By understating and applying Omnicom stock analysis, traders can identify Omnicom position entry and exit signals to maximize returns.
Quick Ratio0.79
Trailing Annual Dividend Rate2.75
Fifty Two Week Low61.31
Revenue Growth-0.10%
Payout Ratio45.83%
Average Daily Volume Last 10 Day1.02M
Shares Short Prior Month11.11M
Average Daily Volume In Three Month1.58M
Earnings Growth5.00%
Shares Percent Shares Out4.97%
Earnings Quarterly Growth0.10%
Gross Margins19.38%
Forward Price Earnings10.76
Short Percent Of Float5.72%
Float Shares202.95M
Fifty Two Week High91.61
Fifty Day Average67.28
Enterprise Value To Ebitda7.82
Two Hundred Day Average74.09
Enterprise Value To Revenue1.29
Trailing Annual Dividend Yield3.81%
Please check Your Equity Center. Note that the Omnicom Group information on this page should be used as a complementary analysis to other Omnicom's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running Omnicom Group price analysis, check to measure Omnicom's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Omnicom is operating at the current time. Most of Omnicom's value examination focuses on studying past and present price action to predict the probability of Omnicom's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Omnicom's price. Additionally, you may evaluate how the addition of Omnicom to your portfolios can decrease your overall portfolio volatility.
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Is Omnicom's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Omnicom. If investors know Omnicom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Omnicom listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.05
Market Capitalization
15 B
Quarterly Revenue Growth YOY
-0.001
Return On Assets
0.0528
Return On Equity
0.35
The market value of Omnicom Group is measured differently than its book value, which is the value of Omnicom that is recorded on the company's balance sheet. Investors also form their own opinion of Omnicom's value that differs from its market value or its book value, called intrinsic value, which is Omnicom's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Omnicom's market value can be influenced by many factors that don't directly affect Omnicom's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine Omnicom value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.