Omnicom Story

OMC -  USA Stock  

USD 84.96  0.66  0.78%

While many traders are getting carried away by overanalyzing communication services space, it is reasonable to go over Omnicom Group. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation justified? Here we go over Omnicom Group perspective on valuation to give you a better outlook on taking a position in this stock.
Published over two weeks ago
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Is Omnicom (NYSE:OMC) ready for a correction?
The company has 7.32 B in debt with debt to equity (D/E) ratio of 1.93, which is OK given its current industry classification.
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 59.56 percent. This suggests that the company is making $0.6 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.
We determine the current worth of Omnicom Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Omnicom Group based exclusively on its fundamental and basic technical indicators. By analyzing Omnicom's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Omnicom's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Omnicom. We calculate exposure to Omnicom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Omnicom's related companies.

Omnicom Group Investment Alerts

Omnicom investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Omnicom Group performance across your portfolios.Please check all investment alerts for Omnicom

Omnicom Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Omnicom value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Omnicom competition to find correlations between indicators driving the intrinsic value of Omnicom.

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

Acquisition by Rochelle Tarlowe of 4610 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 Rochelle Tarlowe, Senior VP and Treasurer, on 5th of May 2021. This event was filed by Omnicom Group Inc with SEC on 2021-05-05. Statement of changes in beneficial ownership - SEC Form 4. Rochelle Tarlowe currently serves as senior vice president treasurer of Omnicom Group [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.

Breaking it down

The current rise in Omnicom short term price appreciation may encourage investors to take a closer look at the company as it is trading at a share price of 79.65 on 1,980,505 in trading volume. The company directors and management have successfully maneuvered the company at convenient times to take advantage of all market conditions in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.66. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

Omnicom profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Omnicom itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Omnicom profit margins.
6.88
Profit Margin
11.79
Operating Margin
12.83
EBITDA Margin
Operating Margin11.79
EBITDA Margin12.83
Gross Margin22.92
Profit Margin6.88


Omnicom Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment. Moreover, Omnicom Net Income Per Employee is increasing over the last 8 years.

Will price continue to rise in May 2021?

The variance is down to 2.59 as of today. Omnicom Group has relatively low volatility with skewness of 0.03 and kurtosis of 0.06. However, we advise all investors to independently investigate Omnicom Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Omnicom'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 Omnicom'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.

Our Final Take On Omnicom

Whereas many of the other players within the advertising agencies industry are still a little expensive, even after the recent corrections, Omnicom may offer a potential longer-term growth to investors. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Omnicom. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Omnicom.

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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