Omnicom Group Inc. (OMC)
Communication Services · Advertising · US stock · S&P 500 component
$82.56
▲ +2.06 (2.56%)
Fair valueFair
$92 +11.0% to fair value
$46fair band $78–$111$138
Day's range
$79.65 – $84.02
52-week range
$66.33 – $89.57
About Omnicom Group Inc.
Omnicom Group is an advertising, marketing and communications holding company that owns networks of agencies. They provide advertising creative, media planning and placement, public relations, branding, data and precision marketing, and customer engagement work for brands in many industries. Clients include large multinational companies as well as smaller advertisers, and the work is carried out across a global network of agencies.
Omnicom earns fees and commissions from clients for creative work, media services and marketing programmes. Revenue is $19.8 billion over the last twelve months, rising 6.5% a year across the last three years. The operating margin is 3.2%, and the business earns a profit of 3% on the capital invested in it. The company has net debt of 5.6 times EBITDA, and the dividend yield is 3.9%. On the site's X-Ray Score it receives 40 out of 100.
Price chart
52-wk range $66.33 – $89.57Volume 4,055,793Daily, split-adjusted
Vitals
Market cap$24.7B
52-week range$66.33 – $89.57
Volume (last day)4,055,793
P/E (TTM)293.2
EBIT / EV yield2.1%
Free-cash-flow yield12.1%
Dividend yield3.9%
Revenue (TTM)$19.8B
Net income (TTM)$63M
Operating margin3.2%
Return on capital2.9%
Debt incl. leases$10.0B
Cash & securities$4.3B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$92middle half of models $71 – $101
Fair
+11.0% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $83
Undervalued < $78Fair $78 – $111Overvalued > $111
P/E multiple
$71
P/B multiple
$120
P/S multiple
$91
EV/EBITDA multiple
$63
EV/EBIT multiple
$35
EV/revenue multiple
$93
10-year DCF, EBITDA exit
$101
5-year DCF, EBITDA exit
$95
10-year DCF, revenue exit
$96
5-year DCF, revenue exit
$99
10-year DCF, growth exit · not used
$32
5-year DCF, growth exit · not used
$21
Dividend discount, stable
$112
Dividend discount, multi-stage
$152
Earnings power value
$65
Growth the price implies
36.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Communication Services peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
50/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield2.1%
Free-cash-flow yield12.1%
Fair value vs price1.1×
Growth
Fair
69/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)6.5%
Growth consistency100%
Profitability
Weak
27/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital2.9%
Operating margin3.2%
Gross profitability3.8%
Financial health
Weak
13/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score3 / 9
Net debt / EBITDA5.6×
Interest cover2.0×
Dividends
Weak
40/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield3.9%
Dividends vs free cash flow32%
Dividend growth-1.8%
Quarterly results: last 6 quarters
+6.4%
Dec '24
+1.6%
Mar '25
+4.2%
Jun '25
+4.0%
Sep '25
+27.9%
Dec '25
+69.2%
Mar '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.2B, diluted EPS $1.35.
SWOT analysis: Omnicom Group Inc.
Strengthsinside the company
- Free cash flow equals 12.1% of the market value, which funds dividends, buybacks or debt paydown.
Weaknessesinside the company
- Return on invested capital is only 2.9% (median 11.8% for sector peers), so the business earns little above its cost of capital.
- Operating margin of 3.2% is thin against 19.8% for sector peers.
- Net debt is 5.6x EBITDA, above the 3x level that lenders usually watch.
- Operating profit covers interest only 2.0x.
Opportunitiesvaluation and setting
- Our Market Compass rates the backdrop for Communication Services as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Heavy debt makes profits sensitive to interest rates and refinancing conditions.
- Trades at 392.1x earnings, 1,815% above the 20.5x median of sector peers, so the price already assumes better results.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare OMC with peers and sector
Medians of 17 Communication Services peers and of 17 Communication Services stocks in our universe.
Largest peers (X-Ray Score): GOOG 50, META 58, NFLX 58, CCZ 48, DIS 56, VZ 49.
| Metric | OMC | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 40 | 52 | 52 |
| Valuation | 50 | 54 | 54 |
| Growth | 69 | 48 | 48 |
| Profitability | 27 | 54 | 54 |
| Financial health | 13 | 52 | 52 |
| Dividends | 40 | 48 | 48 |
Sector leaders: highest X-Ray Score in Communication Services
OMC ranks #16 of 18 in Communication Services by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for OMC
Each factor is rated by where OMC stands among the 18 Communication Services stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 4 Good · 5 Average · 12 Bad of 21
Growth: 0 · 2 · 0
Profitability: 0 · 0 · 5
Financial strength: 0 · 0 · 4
Valuation: 2 · 1 · 2
Cash flow: 2 · 2 · 0
Efficiency: 0 · 0 · 1
| Factor | OMC | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +6.5% | Average beats 53% | +5.6% | – | – |
| Revenue growth, last year | +10.1% | Average beats 64% | +7.7% | +6.8% | ▲ Better |
| Profitability | |||||
| Gross margin | 9.5% | Bad beats 5% | 47.1% | 18.6% | ▼ Worse |
| Operating margin | 3.2% | Bad beats 19% | 19.3% | 14.5% | ▼ Worse |
| Net margin | 0.3% | Bad beats 8% | 10.6% | 9.4% | ▼ Worse |
| Return on invested capital | 2.9% | Bad beats 14% | 10.4% | – | – |
| Return on equity | 0.7% | Bad beats 8% | 17.9% | 38.5% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 5.6x | Bad beats 9% | 1.4x | 0.6x | ▼ Worse |
| Interest cover | 2.0x | Bad beats 9% | 11.8x | 9.3x | ▼ Worse |
| Current ratio | 0.91 | Bad beats 31% | 1.10 | 0.97 | ≈ In line |
| Piotroski F-score | 3 / 9 | Bad beats 8% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 392.1x | Bad beats 3% | 20.8x | 12.0x | ▼ Worse |
| Price / book | 2.6x | Average beats 53% | 2.8x | 4.8x | ▲ Better |
| Price / sales | 1.2x | Good beats 86% | 2.0x | 1.1x | ≈ In line |
| EV / EBITDA | 30.4x | Bad beats 15% | 13.4x | 7.9x | ▼ Worse |
| Free cash flow yield | 12.1% | Good beats 88% | 3.9% | 8.1% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 15.1% | Average beats 47% | 15.7% | 9.1% | ▲ Better |
| Cash from operations / net income | 50.35 | Good beats 97% | 1.98 | 1.10 | ▲ Better |
| Free cash flow growth, 3 years a year | +48.7% | Good beats 91% | +11.7% | – | – |
| Accruals (lower is better) | −6.2% | Average beats 53% | −5.8% | – | – |
| Efficiency | |||||
| Days sales outstanding | 231 days | Bad beats 3% | 47 days | 215 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 3 Good · ● 3 Average · ● 9 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
Free-cash-flow growth (3y)Good
Revenue growth (3y)Average
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceAverage
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 39/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $14.3B | $14.3B | $14.7B | $15.7B | $17.3B |
| Operating income | $2.2B | $2.1B | $2.1B | $2.3B | $445M |
| Net income | $1.4B | $1.3B | $1.4B | $1.5B | −$55M |
| Operating cash flow | $1.9B | $927M | $1.4B | $1.7B | $2.9B |
| Operating margin | 15.4% | 14.6% | 14.3% | 14.5% | 2.6% |
| Free cash flow | $1.3B | $848M | $1.3B | $1.6B | $2.8B |
| Diluted EPS | $6.53 | $6.36 | $6.91 | $7.46 | $-0.27 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 79.53 | Bullish |
| EMA 10 | 79.73 | Bullish |
| SMA 20 | 77.24 | Bullish |
| EMA 20 | 78.71 | Bullish |
| SMA 50 | 80.23 | Bullish |
| EMA 50 | 78.88 | Bullish |
| SMA 100 | 78.99 | Bullish |
| EMA 100 | 78.56 | Bullish |
| SMA 200 | 76.88 | Bullish |
| EMA 200 | 77.47 | Bullish |
Oscillators (daily)
| RSI (14) | 64.58 | Neutral |
| MACD (12, 26) | 0.76 | Bullish |
| Momentum (12) | 9.93 | Bullish |
| Stochastic %K (14) | 85.21 | Bearish |
| Williams %R (14) | -14.79 | Bearish |
| CCI (20) | 139.6 | Bearish |
Pivot points (classic, last session)
S3 75.76 | S2 77.71 | S1 80.13 | Pivot 82.08 | R1 84.50 | R2 86.45 | R3 88.87 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.20 USD
Yield on today's price
3.88%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.8000 | |
| 0.8000 | |
| 0.8000 | |
| 0.8000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 | |
| 0.7000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold OMC
| ETF | Share of the fund |
|---|---|
| XLC Communication Services Select Sector S... | 2.50% |
| VFLO VictoryShares Free Cash Flow | 2.10% |
| CALF Pacer US Small Cap Cash Cows 100 | 1.94% |
| SPHD Invesco S&P 500 High Dividend Low Vola... | 1.42% |
| FCOM Fidelity MSCI Communication Services I... | 1.37% |
| VOX Vanguard Communication Services | 1.37% |
| BKDV BNY Mellon Dynamic Value | 1.32% |
| DVY iShares Select Dividend | 1.17% |
The eight funds with the largest weight in OMC among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
OMC stock splits
OMC has split its stock 3 times since 1995. The latest was a 2-for-1 split on 26 Jun 2007.
Full OMC stock split history →OMC SEC filings
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Regulation FD disclosure
DEF 14ASEC EDGAR
Proxy statement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.