OMC
Omnicom Group
$84.77
▲ 2.7%Updated Aug 7, 11:30 AM ET
OMC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 44/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 2.8% over the last 12 months
Market Cap
$22.41B
P/E
—
Forward P/E (est.)
—
ROE
0.8%
Revenue Growth
25.9%
EPS Growth
-94.6%
Profit Margin
0.3%
FCF Yield
10.7%
Debt / Equity
0.76x
ROIC
2.0%
Interest Coverage
1.69x
Current Ratio
0.91x
Dividend Yield
4.2%
Implied Growth (rev. DCF)
-3.1%
Rating Score
44/100
Omnicom Group (OMC) is a large-cap company in the Advertising industry, part of the Communication Services sector of the S&P 500, with a market value around $22.41B.
In its latest reported year it generated about $17.27B in revenue and posted a net loss of $54.50M.
Our model rates OMC Neutral (44/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
10.5% average over the last 3 years
±3.5 pts around 12.8% across 10 years
grew in 5 of the last 9 year-over-year periods
positive in 10 of 10 years
2.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what OMC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. OMC trades near $84.77, above its 50-day average ($74.98) and 200-day average ($76.45). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 58 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. OMC's is $2.66 (~3.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month OMC found buyers near $70.29 (support) and sellers near $78.77 (resistance); its 52-week range is $66.33–$87.17. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
4.9%
Revenue moved from $15.42B in 2016 to $17.27B in 2025, a 1.3% compound annual growth rate. The most recent year grew a strong 25.9% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
26.7%
Operating Margin
2.6%
Net Margin
-0.3%
ROE
0.8%
Omnicom Group keeps about 0.3% of each sales dollar as net profit, with a 26.7% gross margin and 2.6% operating margin. Return on equity is 0.8% and return on invested capital about 2.0%. Thin margins leave less cushion if costs rise.
Total Debt
$9.27B
Net Debt
$3.96B
Net Debt / EBITDA
8.9x
Debt / Equity
0.76x
Leverage: debt-to-equity is 0.8x, and operating profit covers interest about 1.7x, with a current ratio of 0.9x. That is a moderate, manageable debt load for most businesses. It carries roughly $9.27B of total debt against $5.32B of cash.
Operating CF
$2.94B
Free Cash Flow
$2.79B
FCF Margin
16.1%
In the latest year Omnicom Group produced about $2.94B of operating cash flow and $2.79B of free cash flow after capital spending. That is a free-cash-flow yield of about 10.7% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
4.2%
Per share (latest FY)
$2.90
Total paid (latest FY)
$549.60M
History on record
9 years
dividend uses 20% of free cash flow
no current raise streak
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
—
P/S
1.27x
P/B
2.31x
EV / EBITDA
—
OMC trades at n/a trailing earnings, 1.3x sales, and 2.3x book value. Reverse-engineering today's price implies the market expects roughly -3.1% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$405.15
Current price
$84.77
Starting FCF (latest 10-K)
$2.79B
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where OMC sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 44 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How OMC stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (95 S&P 500 companies), OMC ranks #28 of 95 by our overall rating.
P/E vs sector
—
median 17.1x
ROE vs sector
0.8%
median 14.9%
Growth vs sector
25.9%
median 5.3%
Sector rank
#28
of 95 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 95 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $84.77 today · expected CAGR -2% – 8%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $21.76B | $27.42B | $34.55B | $43.53B | $54.85B |
| Net income | $652.88M | $822.63M | $1.04B | $1.31B | $1.65B |
| EPS | $2.47 | $3.11 | $3.92 | $4.94 | $6.23 |
| Share price (low) | $29.64 | $37.35 | $47.06 | $59.29 | $74.71 |
| Share price (high) | $49.40 | $62.24 | $78.43 | $98.82 | $124.51 |
| CAGR (low–high) | -65% / -42% | -34% / -14% | -18% / -3% | -9% / 4% | -2% / 8% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for OMC:
- Revenue is growing 25.9% a year, a sign of real demand.
- Healthy free-cash-flow yield (~10.7%) funds buybacks and dividends.
- Pays a 4.2% dividend on top of any price gains.
The case against OMC:
- Thin net margins (0.3%) leave little room for error.
- Interest coverage is thin (1.7x), so debt costs bite.
Margin risk — thin profitability (0.3%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Omnicom Group is a large-cap communication services business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at n/a earnings, which our model scores Neutral (44/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 19 Wall Street analysts covering OMC recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
OMC's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
OMC — frequently asked questions
Is OMC a good stock to buy?
We don't give buy or sell advice. Our model rates Omnicom Group Neutral (44/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is OMC's rating on The Stocks School?
Omnicom Group currently scores 44/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does OMC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Omnicom Group's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for OMC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this OMC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell OMC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.