Omnicom Group Inc. (OMC) Stock

Omnicom Group Inc. trades at a P/E ratio of 9.75, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 8.45 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.33 indicates reasonable value when growth is considered.

With a beta of 0.95, Omnicom Group Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 3.20 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Omnicom Group Inc. achieves a profit margin of 9.21%, meaning it retains $9.21 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 13.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 31.00% and ROA at 5.20%, the company generates strong returns on invested capital.

Omnicom Group Inc.'s revenue grew by 1.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 8.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against SERVICES-ADVERTISING AGENCIES industry averages for proper context.

Omnicom Group Inc. offers a dividend yield of 3.92%, paying $2.80 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/10/2025.

The dividend sustainability can be assessed through the payout ratio - Omnicom Group Inc. pays $2.80 per share in dividends against earnings of $7.32 per share, resulting in a payout ratio of 38.25%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 7/9/2025.

Omnicom Group Inc. has a market capitalization of $13.97B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 195.83M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SERVICES-ADVERTISING AGENCIES industry, it competes with other firms in this sector.

Omnicom Group Inc.'s book value per share is $22.41, while the current stock price is $76.47, resulting in a price-to-book (P/B) ratio of 3.41. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

11 analysts cover OMC with 73% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $99.51 implies 30.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 3 Buy, 2 Hold, 01 Strong Sell. The 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.

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MACD and moving average data are not available for this stock.