Omnicom Z Score

OMC
 Stock
  

USD 78.52  0.63  0.80%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please check Omnicom Piotroski F Score and Omnicom Valuation analysis.
  
Omnicom Return on Invested Capital is projected to slightly decrease based on the last few years of reporting. The past year's Return on Invested Capital was at 0.47. The current year Market Capitalization is expected to grow to about 20.3 B, whereas Capital Expenditure is forecasted to decline to (126.8 M). Omnicom Gross Profit is projected to increase significantly based on the last few years of reporting. The past year's Gross Profit was at 17.2 Billion. The current year Net Income to Non Controlling Interests is expected to grow to about 92 M, whereas Direct Expenses is forecasted to decline to about 10.8 B.

Omnicom Z Score Analysis

Omnicom's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2021 2022 (projected)
Consolidated Income1.44 B1.65 B1.56 B
Direct Expenses12.19 B11.5 B10.8 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Omnicom Z Score

    
  1.2  
Most of Omnicom's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Omnicom Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Omnicom Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Omnicom is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Omnicom's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Omnicom's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Omnicom's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, Omnicom Group has a Z Score of 1.2. This is 162.5% lower than that of the Communication Services sector and significantly higher than that of the Advertising Agencies industry. The z score for all United States stocks is 86.24% higher than that of the company.

Omnicom Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Omnicom's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Omnicom could also be used in its relative valuation, which is a method of valuing Omnicom by comparing valuation metrics of similar companies.
Omnicom is currently under evaluation in z score category among related companies.

Omnicom Current Valuation Drivers

We derive many important indicators used in calculating different scores of Omnicom from analyzing Omnicom's financial statements. These drivers represent accounts that assess Omnicom's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Omnicom's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee14.08 K18.84 K19.13 K14.71 K19.64 K16.81 K
Revenue Per Employee197.59 K217.19 K213.62 K204.92 K199.29 K190.1 K
Average Assets21.64 B22.88 B23.2 B25.17 B28.95 B27.61 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA2.34 B2.4 B2.21 B1.68 B2.28 B2.09 B
Earnings Before Interest Taxes and Depreciation Amortization USD2.27 B2.32 B2.35 B2.32 B2.67 B2.63 B
Earnings before Tax1.75 B1.78 B1.82 B1.84 B2.12 B2.07 B
Average Equity2.29 B2.38 B2.47 B2.54 B2.28 B2.44 B
Enterprise Value23.17 B19.91 B19.18 B21.6 B24.83 B24.35 B
Free Cash Flow1.79 B1.87 B1.53 B1.75 B2.02 B1.96 B
Invested Capital1.7 B1.25 B819.1 M3.14 B3.61 B2.9 B
Invested Capital Average2.48 B2.32 B1.97 B3.97 B4.57 B3.78 B
Market Capitalization20.08 B16.79 B16.41 B17.64 B20.29 B20.34 B
Tangible Asset Value13.76 B15.23 B14.85 B17 B19.56 B18.1 B
Working Capital(1.29 B)(992.9 M)(1.54 B)(1.4 B)(1.26 B)(1.36 B)

Omnicom ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Omnicom's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Omnicom's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Omnicom Institutional Holders

Institutional Holdings refers to the ownership stake in Omnicom that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Omnicom's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Omnicom's value.
Security TypeSharesValue
Zwj Investment Counsel IncCommon Shares3.8 K315 K
Zweig Advisers LlcCommon Shares52 K4.3 M
Zurich Insurance Group LtdCommon Shares12.5 K795 K
Zurich Insurance Group LtdCommon Shares12.5 K1.1 M
Zurich Insurance Group LtdCommon Shares12.5 K916 K
Zurich Insurance Group LtdCommon Shares12.5 K906 K
Zurich Insurance Group LtdCommon Shares12.5 K1000 K

Omnicom Fundamentals

About Omnicom Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Omnicom Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Omnicom using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Omnicom Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. The company was incorporated in 1944 and is based in New York, New York. Omnicom operates under Advertising Agencies classification in the United States and is traded on New York Stock Exchange. It employs 71700 people.

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Please check Omnicom Piotroski F Score and Omnicom Valuation analysis. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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Is Omnicom's industry 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 YOY
0.073
Market Capitalization
16.1 B
Quarterly Revenue Growth YOY
0.002
Return On Assets
0.0538
Return On Equity
0.36
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.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine Omnicom value 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.