Interpublic Stock Story

IPG
 Stock
  

USD 29.02  0.30  1.02%   

Interpublic Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 1.88 Billion. The current year Working Capital is expected to grow to about 368.8 M, whereas Average Assets are forecasted to decline to about 17.2 B. The fundamental objective of this short story is to break down our forecasting of Interpublic for shareholders. We will try to forecast Interpublic outlook for August.
Published over two weeks ago
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Interpublic (NYSE:IPG) is to drop even more in August

The company has a beta of 1.2614. Let's try to break down what Interpublic's beta means in this case. Interpublic returns are very sensitive to returns on the market. As the market goes up or down, Interpublic is expected to follow. The beta indicator helps investors understand whether Interpublic moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Interpublic deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Interpublic Group. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Interpublic

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Interpublic's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Interpublic in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Interpublic. Your research has to be compared to or analyzed against Interpublic's peers to derive any actionable benefits. When done correctly, Interpublic's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Interpublic Group.

How important is Interpublic's Liquidity

Interpublic financial leverage refers to using borrowed capital as a funding source to finance Interpublic Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Interpublic financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Interpublic's total debt and its cash.

How does Interpublic utilize its cash?

To perform a cash flow analysis of Interpublic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Interpublic is receiving and how much cash it distributes out in a given period. The Interpublic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Interpublic Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 2.08 Billion

Going after Interpublic Financials

Interpublic Group exhibits very low volatility with skewness of -0.2 and kurtosis of -0.35. However, we advise investors to further study Interpublic Group technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Interpublic's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Interpublic's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Interpublic Implied Volatility

Interpublic's implied volatility exposes the market's sentiment of Interpublic Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Interpublic's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Interpublic stock will not fluctuate a lot when Interpublic's options are near their expiration.

Margin Breakdown

Operating Margin11.73
EBITDA Margin0.14
Gross Margin0.2
Profit Margin0.0849

Will Interpublic price dip impact its balance sheet?

Latest Information Ratio is up to -0.03. Price may dip again. Interpublic Group exhibits very low volatility with skewness of -0.2 and kurtosis of -0.35. However, we advise investors to further study Interpublic Group technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Interpublic's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Interpublic's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Interpublic Implied Volatility

Interpublic's implied volatility exposes the market's sentiment of Interpublic Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Interpublic's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Interpublic stock will not fluctuate a lot when Interpublic's options are near their expiration.

Our Bottom Line On Interpublic Group

Although some firms in the advertising agencies industry are either recovering or due for a correction, Interpublic may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 21st of July 2022, we believe that at this point, Interpublic is undervalued with below average probability of distress within the next 2 years. Our primary 'Buy-Sell' recommendation on the firm is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Interpublic Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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