Omnicom Story

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OMC -- USA Stock  

USD 64.17  0.27  0.42%

Omnicom Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 25.17 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 2.4 B, whereas Net Income Per Employee is forecasted to decline to about 16.4 K. As many baby boomers are still indifferent towards communication services space, it makes sense to go over Omnicom Group. We will evaluate why recent Omnicom price moves suggest a bounce in November. Here I will also go over some fundamental indicators that the firm investors should consider in November.
Published over three weeks ago
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Is Omnicom (NYSE:OMC) finally getting endorsement from investors?
This firm is fairly valued at 50.73 per share with modest projections ahead. The company holds a Beta of -0.1416, which implies not very significant fluctuations relative to the market. Let's try to break down what Omnicom's beta means in this case. As returns on the market increase, returns on owning Omnicom are expected to decrease at a much lower rate. During the bear market, Omnicom is likely to outperform the market. Even though it is essential to pay attention to Omnicom Group current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Omnicom Group exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Omnicom Group has an expected return of -0.14%. Please be advised to check Omnicom Group downside variance, and the relationship between the treynor ratio and kurtosis to decide if Omnicom Group stock performance from the past will be repeated at some point in the near future.

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 $1.5 per share.
As of November 25, 2020, Payment of Dividends and Other Cash Distributions is expected to decline to about (608.9 M). In addition to that, Dividend Yield is expected to decline to 0.0312.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-564.3 M-608.9 M
Dividend Yield 0.032  0.0312 
Dividends per Basic Common Share 2.60  2.34 
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.

How important is Omnicom's Liquidity

Omnicom financial leverage refers to using borrowed capital as a funding source to finance Omnicom Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Omnicom 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 Omnicom's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Omnicom, but it might be worth checking our own buy vs. sell analysis

What did Omnicom file with SEC?

The SEC filings are financial statements or other formal documents of Omnicom Group that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Omnicom shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Results of Operations and Financial Condition
Submission of Matters to a Vote of Security Holders
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Omnicom shareholders may or may not be submitted as SEC does not always require it.

Acquisition by Ronnie Hawkins of 884 shares of Omnicom subject to Rule 16b-3

Legal trades by Omnicom insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Omnicom insider trading alert for grant of common stock par value $0.15 per share by Ronnie Hawkins, the corporate stakeholder, on 5th of October 2020. This event was filed by Omnicom Group Inc with SEC on 2020-10-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Omnicom valued fairly by the market?

Omnicom Group has a total of 214.87 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 eighty-nine thousand six hundred invesors are currently shorting Omnicom expressing very little confidence in its future performance.
 2017 2018 2019 2020 (projected)
Consolidated Income1.19 B1.44 B1.44 B1.43 B
Direct Expenses12.48 B12.44 B12.19 B11.18 B

Ownership Breakdown

Retail Investors-8.38

Breaking up Omnicom current price slip

Current potential upside is at 2.89. Omnicom Group exhibits very low volatility with skewness of -0.1 and kurtosis of 0.14. However, we advise investors to further study Omnicom Group technical indicators to make sure all market info is available and is reliable.

Our Conclusion on Omnicom

Whereas many other 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. All things considered, as of the 27th of October 2020, our analysis shows that Omnicom moves indifferently to market moves. The company is fairly valued and projects close to average chance of bankruptcy for the next 2 years. Our present 30 days advice on the company is Hold.

About Contributor

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 Achuva Shats do not own shares of Omnicom Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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