Is Omnicom Stock a Good Investment?
Omnicom Investment Advice | OMC |
- Examine Omnicom's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Omnicom's leadership team and their track record. Good management can help Omnicom navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Advertising space and any emerging trends that could impact Omnicom's business and its evolving consumer preferences.
- Compare Omnicom's performance and market position to its competitors. Analyze how Omnicom is positioned in terms of product offerings, innovation, and market share.
- Check if Omnicom pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Omnicom's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Omnicom Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Omnicom Group is a good investment.
Sell | Buy |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Omnicom Stock
Researching Omnicom's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The book value of Omnicom was now reported as 20.25. The company has Price/Earnings To Growth (PEG) ratio of 1.48. Omnicom Group recorded earning per share (EPS) of 7.32. The entity last dividend was issued on the 20th of September 2024. The firm had 2:1 split on the 26th of June 2007.
To determine if Omnicom is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Omnicom's research are outlined below:
| Omnicom Group has 6.5 B in debt with debt to equity (D/E) ratio of 1.75, 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. Note however, debt could still be an excellent tool for Omnicom to invest in growth at high rates of return. | |
| Over 99.0% of Omnicom shares are owned by institutional investors | |
| On 11th of October 2024 Omnicom paid $ 0.7 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: MediaSense acquires R3 to expand global footprint, service capabilities |
Omnicom Quarterly Accounts Payable |
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Omnicom uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Omnicom Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Omnicom's 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.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 16th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
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. Below are the table of largest EPS Surprises Omnicom's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1996-10-24 | 1996-09-30 | 0.1 | 0.11 | 0.01 | 10 | ||
2009-04-27 | 2009-03-31 | 0.44 | 0.53 | 0.09 | 20 | ||
2011-04-19 | 2011-03-31 | 0.59 | 0.69 | 0.1 | 16 | ||
2020-10-27 | 2020-09-30 | 1.07 | 1.21 | 0.14 | 13 | ||
2023-04-18 | 2023-03-31 | 1.39 | 1.56 | 0.17 | 12 | ||
2021-04-20 | 2021-03-31 | 1.13 | 1.33 | 0.2 | 17 | ||
2022-02-08 | 2021-12-31 | 1.73 | 1.95 | 0.22 | 12 | ||
2021-02-18 | 2020-12-31 | 1.65 | 1.9 | 0.25 | 15 |
Know Omnicom's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Omnicom is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Omnicom Group backward and forwards among themselves. Omnicom's institutional investor refers to the entity that pools money to purchase Omnicom's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Beutel, Goodman & Company Ltd. | 2024-09-30 | 3.2 M | First Trust Advisors L.p. | 2024-06-30 | 3 M | Capital Research Global Investors | 2024-09-30 | 2.9 M | Amvescap Plc. | 2024-06-30 | 2.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 2.7 M | Baird Financial Group, Inc. | 2024-06-30 | 2.6 M | Goldman Sachs Group Inc | 2024-06-30 | 2.5 M | Cooke & Bieler Lp | 2024-09-30 | 2.4 M | Northern Trust Corp | 2024-09-30 | 2.1 M | Vanguard Group Inc | 2024-09-30 | 22.9 M | Blackrock Inc | 2024-06-30 | 18.3 M |
Omnicom's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 19.33 B.Market Cap |
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Omnicom's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.08 | 0.05 | |
| Return On Capital Employed | 0.18 | 0.23 | |
| Return On Assets | 0.05 | 0.03 | |
| Return On Equity | 0.38 | 0.22 |
Determining Omnicom's profitability involves analyzing its financial statements and using various financial metrics to determine if Omnicom is a good buy. For example, gross profit margin measures Omnicom's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Omnicom's profitability and make more informed investment decisions.
Omnicom's Earnings Breakdown by Geography
Please note, the presentation of Omnicom's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Omnicom's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Omnicom's management manipulating its earnings.
Evaluate Omnicom's management efficiency
Omnicom Group has Return on Asset of 0.0508 % which means that on every $100 spent on assets, it made $0.0508 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.3392 %, implying that it generated $0.3392 on every 100 dollars invested. Omnicom's management efficiency ratios could be used to measure how well Omnicom manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.23, whereas Return On Tangible Assets are forecasted to decline to 0.05. At present, Omnicom's Other Assets are projected to increase significantly based on the last few years of reporting. The current year's Deferred Long Term Asset Charges is expected to grow to about 21.7 M, whereas Total Assets are forecasted to decline to about 15.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 23.04 | 24.19 | |
| Tangible Book Value Per Share | (28.85) | (27.41) | |
| Enterprise Value Over EBITDA | 8.40 | 7.24 | |
| Price Book Value Ratio | 4.82 | 3.98 | |
| Enterprise Value Multiple | 8.40 | 7.24 | |
| Price Fair Value | 4.82 | 3.98 | |
| Enterprise Value | 17.5 B | 18.4 B |
Omnicom Group has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Dividend Yield 0.0283 | Forward Dividend Yield 0.0283 | Forward Dividend Rate 2.8 | Beta 0.968 |
Basic technical analysis of Omnicom Stock
As of the 22nd of November, Omnicom holds the Coefficient Of Variation of 2171.77, semi deviation of 1.55, and Risk Adjusted Performance of 0.0392. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Omnicom, as well as the relationship between them.Omnicom's 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's Outstanding Corporate 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.
| OMEGA HEALTHCARE INVS Corp BondUS681936BD18 | View | |
| OMEGA HEALTHCARE INVS Corp BondUS681936BH22 | View | |
| OMEGA HEALTHCARE INVS Corp BondUS681936BF65 | View | |
| OMNICOM GROUP INC Corp BondUS681919BD76 | View | |
| US681919BB11 Corp BondUS681919BB11 | View | |
| US681919BC93 Corp BondUS681919BC93 | View | |
| OMNICOM GROUP INC Corp BondUS681919BA38 | View | |
| US681936BM17 Corp BondUS681936BM17 | View |
Understand Omnicom's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Omnicom's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0392 | |||
| Market Risk Adjusted Performance | 0.0754 | |||
| Mean Deviation | 0.9136 | |||
| Semi Deviation | 1.55 | |||
| Downside Deviation | 1.68 | |||
| Coefficient Of Variation | 2171.77 | |||
| Standard Deviation | 1.38 | |||
| Variance | 1.9 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.0654 | |||
| Maximum Drawdown | 10.11 | |||
| Value At Risk | (1.24) | |||
| Potential Upside | 1.82 | |||
| Downside Variance | 2.82 | |||
| Semi Variance | 2.41 | |||
| Expected Short fall | (0.92) | |||
| Skewness | (2.80) | |||
| Kurtosis | 15.33 |
| Risk Adjusted Performance | 0.0392 | |||
| Market Risk Adjusted Performance | 0.0754 | |||
| Mean Deviation | 0.9136 | |||
| Semi Deviation | 1.55 | |||
| Downside Deviation | 1.68 | |||
| Coefficient Of Variation | 2171.77 | |||
| Standard Deviation | 1.38 | |||
| Variance | 1.9 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.10) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.0654 | |||
| Maximum Drawdown | 10.11 | |||
| Value At Risk | (1.24) | |||
| Potential Upside | 1.82 | |||
| Downside Variance | 2.82 | |||
| Semi Variance | 2.41 | |||
| Expected Short fall | (0.92) | |||
| Skewness | (2.80) | |||
| Kurtosis | 15.33 |
Consider Omnicom's intraday indicators
Omnicom intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Omnicom stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 44703.9 | |||
| Daily Balance Of Power | 0.7901 | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 100.38 | |||
| Day Typical Price | 100.9 | |||
| Price Action Indicator | 2.99 | |||
| Period Momentum Indicator | 2.86 |
Omnicom Corporate Filings
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
F4 | 22nd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
ASR | 21st of October 2024 Automatic Shelf Registration Statement under Rule 415 filed with the U.S. Securities and Exchange Commission (SEC) | ViewVerify |
8K | 18th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Omnicom Stock media impact
Far too much social signal, news, headlines, and media speculation about Omnicom that are available to investors today. That information is available publicly through Omnicom media outlets and privately through word of mouth or via Omnicom internal channels. However, regardless of the origin, that massive amount of Omnicom data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Omnicom news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Omnicom relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Omnicom's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Omnicom alpha.
Omnicom Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Omnicom can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Omnicom Group Historical Investor Sentiment
Investor biases related to Omnicom's public news can be used to forecast risks associated with an investment in Omnicom. The trend in average sentiment can be used to explain how an investor holding Omnicom can time the market purely based on public headlines and social activities around Omnicom Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Omnicom's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Omnicom and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Omnicom news discussions. The higher the estimate score, the more favorable the investor's outlook on Omnicom.
Omnicom Maximum Pain Price across 2024-12-20 Option Contracts
Omnicom's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Omnicom close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Omnicom's options.
Omnicom Corporate Directors
| Gracia Martore | Independent Director | Profile | |
| Ronnie Hawkins | Independent Director | Profile | |
| Deborah Kissire | Independent Director | Profile | |
| Linda Rice | Independent Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Omnicom Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Advertising space 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 0.048 | Dividend Share 2.8 | Earnings Share 7.32 | Revenue Per Share 78.314 | Quarterly Revenue Growth 0.085 |
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.
In summary, please note that there is a difference between Omnicom's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Omnicom is a good investment 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.