Omnicom Group Inc.
Find Ratings ReportsOMNICOM GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. OMNICOM GROUP INC has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 4060.9 | 3868.2 |
EBITDA ($mil) | 714.9 | 697.3 |
EBIT ($mil) | 661.2 | 642.7 |
Net Income ($mil) | 425.7 | 429.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 4432.0 | 4342.5 |
Total Assets ($mil) | 28044.6 | 27002.5 |
Total Debt ($mil) | 6720.8 | 6702.0 |
Equity ($mil) | 3616.3 | 3252.1 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 20.09 | 20.21 |
EBITDA Margin | 17.6 | 18.02 |
Operating Margin | 16.28 | 16.61 |
Sales Turnover | 0.52 | 0.53 |
Return on Assets | 4.96 | 4.87 |
Return on Equity | 38.48 | 40.48 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.95 | 0.97 |
Debt/Capital | 0.65 | 0.67 |
Interest Expense | 52.6 | 54.4 |
Interest Coverage | 12.57 | 11.81 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 198.0 | 202.7 |
Div / share | 0.7 | 0.7 |
EPS | 2.13 | 2.09 |
Book value / share | 18.26 | 16.04 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1538455.0 | 1354696.0 |
BUY. OMNICOM GROUP INC's P/E ratio indicates a significant discount compared to an average of 40.26 for the Professional, Scientific, and Technical Services subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 5.07 indicates a premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.30. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, OMNICOM GROUP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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OMC 13.39 | Peers 40.26 | OMC 12.90 | Peers 33.12 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. OMC is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OMC is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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OMC 11.09 | Peers 25.54 | OMC 1.13 | Peers 6.56 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. OMC is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. OMC trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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OMC 5.07 | Peers 13.30 | OMC 8.63 | Peers 3.25 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OMC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. OMC is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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OMC 1.25 | Peers 4.53 | OMC 2.82 | Peers 6.63 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OMC is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. OMC significantly trails its peers on the basis of sales growth. |
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