Our advice module provides unbiased recommendation that can be used to complement current
average analyst sentiment on Omnicom Group. Our advice engine provides an advice for the company potential to grow from the perspective of an investor's risk tolerance and investing horizon. This firm dividends can provide a clue to the current value of the stock. Omnicom one year expected dividend income is about $1.7 per share.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Omnicom income statement, its balance sheet, and the statement of cash flows. Potential Omnicom investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Omnicom investors may use each financial statement separately, they are all related. The changes in Omnicom's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Omnicom's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Omnicom
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Omnicom performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Omnicom shares is the value that is considered the true value of the share. If
the intrinsic value of Omnicom is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Omnicom. Please read more on our
fundamental analysis page.
How effective is Omnicom in utilizing its assets?
Omnicom Group reports assets on its Balance Sheet. It represents the amount of Omnicom resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Omnicom aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Advertising space. To get a better handle on how balance sheet or income statements item affect Omnicom volatility, please check the breakdown of all its
fundamentals.
Are Omnicom Earnings Expected to grow?
The
future earnings power of Omnicom involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Omnicom factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Omnicom
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Omnicom
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Omnicom earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Omnicom dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Omnicom one year expected dividend income is about USD1.87 per share.
The current year's
Dividend Payout Ratio is expected to grow to 0.44, whereas
Dividends Paid is forecasted to decline to about 285
M.
Investing in dividend-paying stocks, such as Omnicom Group is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Omnicom must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Omnicom. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Omnicom Gross Profit
Omnicom Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Omnicom previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Omnicom Gross Profit growth over the last 10 years. Please check Omnicom's
gross profit and other
fundamental indicators for more details.
Breaking it down
Institutional investors typically avoid acquiring a high percentage of Omnicom stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Omnicom is distributed among investors.
Ownership Allocation
Omnicom Group has a total of 214.28 Million outstanding shares. The majority of Omnicom Group
outstanding shares are owned by
third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Omnicom Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Omnicom. Please pay attention to any change in the institutional holdings of Omnicom Group as this could imply that something significant has changed or about to change at the company. Also note that almost seventeen million one hundred fourty-two thousand four hundred invesors are currently shorting Omnicom expressing very little confidence in its
future performance.
| Retail Investors | -8.38 |
| Insiders | 0.87 |
| Institutions | 107.51 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Consolidated Income | 1.19 B | 1.44 B | 1.44 B | 1.43 B | Direct Expenses | 12.48 B | 12.44 B | 12.19 B | 11.18 B |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Omnicom has an asset utilization ratio of 67.34 percent. This suggests that the company is making $0.67 for each dollar of assets. An increasing asset utilization means that Omnicom Group is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets14.6 B | Assets Non Current12.4 B | Goodwill10.4 B | |
| Current Assets | 14.57 Billion | 38.89 |
| Assets Non Current | 12.44 Billion | 33.21 |
| Goodwill | 10.43 Billion | 27.85 |
| Tax Assets | 18.14 Million | 0.0484 |
Some Omnicom technical indicators suggest correction
Current coefficient of variation is at 1723.19. Omnicom Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Omnicom Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Omnicom future alpha.
Our Final Take On Omnicom
Whereas some companies in the advertising agencies industry are either recovering or due for a correction, Omnicom may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 28th of July 2020, our actual 30 days 'Buy-Sell' recommendation on the company is
Strong Sell. However, we believe Omnicom is
fairly valued with
close to average odds of financial distress for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Omnicom Group. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com