Omnicom Group (OMC)
Communication Services · $20.6B market cap · SEC CIK 0000029989
fundamentals score out of 100
Next reports on Oct 20, 2026, after the close, with analysts expecting $2.60 in earnings per share.
The case for OMC
- Revenue up 33.1% on the year.
- Generated $2.8B of free cash flow in FY2025, 16% of revenue.
- Free cash flow of 13.6% of its market value a year: a lot of cash for the price.
- Pays a 3.5% dividend while you wait.
- Moves less than the market (beta 0.74).
The case against
- Earnings per share down 83.3%.
- Pricey at 52.7× earnings, against a long-run market average nearer 20×.
- Return on equity of only 4%.
- Net margin of 1.8% leaves very little room for error.
- Current liabilities exceed current assets (ratio 0.92).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 58 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 49 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 24 |
| Momentumhow the price has behaved lately | 50 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
Key numbers
| Price / earnings | 52.7× |
|---|---|
| Price / book | 2.15× |
| Price / sales | 1.0× |
| Revenue growth (YoY) | +33.1% |
| EPS growth (YoY) | -83.3% |
| Gross margin | 23% |
| Operating margin | 5% |
| Net margin | 2% |
| Return on equity | 4% |
| Debt / equity | 1.04× |
| Current ratio | 0.92 |
| Dividend yield | 3.50% |
| Beta | 0.74 |
| 52-week range | $66.33 – $89.57 |
| Position in that range | 39% of the way up |
| 3-month return | +5.9% |
| 1-year return | +0.8% |
Five years of financials, as filed
Pulled from Omnicom Group's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.3B | $15.7B | $14.7B | $14.3B | $14.3B |
| Operating income | $445M | $2.3B | $2.1B | $2.1B | $2.2B |
| Net income | -$54.5M | $1.5B | $1.4B | $1.3B | $1.4B |
| Operating cash flow | $2.9B | $1.7B | $1.4B | $927M | $1.9B |
| Capital expenditure | $150M | $141M | $78.4M | $78.2M | $666M |
| Total assets | $54.4B | $29.6B | $28.0B | $27.0B | $28.4B |
| Shareholder equity | $12.0B | $4.2B | $3.6B | $3.3B | $3.3B |
| Cash | $6.9B | $4.3B | $4.4B | $4.3B | $5.3B |
| Long-term debt | $9.3B | $6.1B | $5.7B | $5.6B | $5.7B |
| Free cash flow | $2.8B | $1.6B | $1.3B | $848M | $1.3B |
| Operating margin | 2.6% | 14.5% | 14.3% | 14.6% | 15.4% |
| Net margin | -0.3% | 9.4% | 9.5% | 9.2% | 9.9% |
| Diluted shares | 205M | 199M | 201M | 207M | 216M |
Share count is down 5.0% over 4 years. Buybacks have been shrinking the pie.
What Omnicom Group says it does
Merger with IPG On November 26, 2025 (the "Closing Date"), Omnicom completed its Merger with IPG (the "Merger"). As previously reported, on December 8, 2024, Omnicom entered into an Agreement and Plan of Merger (the "Merger Agreement") with IPG and EXT Subsidiary Inc., a Delaware corporation and a direct wholly owned subsidiary of Omnicom ("Merger Sub"). On the Closing Date, pursuant to the terms and conditions of the Merger Agreement, Merger Sub merged with and into IPG, with IPG continuing as the surviving corporation and a direct wholly owned subsidiary of Omnicom. Upon the Merger, each outstanding share of IPG common stock (other than certain excluded shares) converted into the right to receive 0.344 shares of Omnicom common stock and cash in lieu of fractional shares. Following the closing of the Merger, legacy Omnicom shareholders owned approximately 60.6% of the combined company and legacy IPG shareholders owned approximately…
Risk factors OMC lists in its 10-K
- Adverse economic conditions, a reduction in client spending, a deterioration in the credit markets or a delay in client payments could have a material effect on our business, results of operations and financial condition
- A period of sustained inflation across our major markets could result in higher operating costs
- Geopolitical events, international hostilities or acts of terrorism could have a material adverse effect on our business, results of operations and financial condition
- Global public health crises or pandemics or other similar health crises could adversely impact our business, results of operations and financial condition
- Acquiring new clients and retaining existing clients depends on our ability to avoid and manage conflicts of interest arising from other client relationships, retaining key personnel and maintaining a highly skilled workforce
- The loss of several of our largest clients could have a material adverse effect on our business, results of operations and financial condition
- We rely extensively on information technology systems and data, and cybersecurity incidents could adversely affect us
- We are subject to risks related to our use of generative AI and agentic AI, new and emerging technologies, which are in the early stages of commercial use and subject to evolving legislative and regulatory requirements
- Our liquidity, long-term financing needs, credit rating and access to capital markets is dependent on our agencies, operating cash flow
- Risks Related to International Operations
- Currency exchange rate fluctuations have impacted, and in the future could impact, our business, results of operations and financial condition
- We operate in high-growth markets and developing countries, which often carry greater risks and uncertainties that could have a material adverse effect on our business, results of operations and financial condition
- Risks Related to the Merger with IPG
- Uncertainties associated with the Merger may cause a loss of our management personnel and other key employees, which could adversely affect our business, results of operations and financial condition