Interpublic Group of Companies Inc (IPG) Stock

Interpublic Group of Companies Inc trades at a P/E ratio of 16.83, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 8.20 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 0.90 suggests the stock may be undervalued relative to its growth rate.

With a beta of 1.01, Interpublic Group of Companies Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.44 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Interpublic Group of Companies Inc achieves a profit margin of 6.25%, meaning it retains $6.25 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 16.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.90% and ROA at 5.38%, the company achieves moderate returns on invested capital.

Interpublic Group of Companies Inc's revenue declined by 4.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 580.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against ADVERTISING AGENCIES industry averages for proper context.

Interpublic Group of Companies Inc offers a dividend yield of 5.27%, paying $1.32 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 2, 2025.

The dividend sustainability can be assessed through the payout ratio - Interpublic Group of Companies Inc pays $1.32 per share in dividends against earnings of $1.46 per share, resulting in a payout ratio of 90.41%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 16, 2025.

Interpublic Group of Companies Inc has a market capitalization of $9.0B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 363.33M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ADVERTISING AGENCIES industry, it competes with other firms in this sector.

Interpublic Group of Companies Inc's book value per share is $10.06, while the current stock price is $24.68, resulting in a price-to-book (P/B) ratio of 2.45. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

9 analysts cover IPG with 56% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $32.79 implies 32.9% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 2 Buy, 4 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.