Omnicom Group Inc. [NYSE:OMC]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Omnicom Group Inc. [OMC] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give OMC an Hold rating. Its stock price has been found in the range of 65.85 to 78.75. This is compared to its latest closing price of $76.90.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Omnicom Group Inc. [OMC] is sitting at 3.15. This is compared to 1 month ago, when its average rating was 3.14.
For the quarter ending in Dec-18 Omnicom Group Inc. [OMC] generated $4.09 billion in sales. That’s 0.39% higher than the average estimate of $4.07 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Today Before Market Open (Confirmed).
Fundamental Analysis of Omnicom Group Inc. [OMC]
Now let’s turn to look at profitability: with a current Operating Margin for Omnicom Group Inc. [OMC] sitting at +13.76 and its Gross Margin at +16.73, this company’s Net Margin is now 8.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 25.31, and its Return on Invested Capital has reached 22.40%. Its Return on Equity is 51.39, and its Return on Assets is 5.35. These metrics all suggest that Omnicom Group Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Omnicom Group Inc. [OMC] has generated a Total Debt to Total Equity ratio of 197.06. Similarly, its Total Debt to Total Capital is 66.34, while its Total Debt to Total Assets stands at 20.39. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 175.61, and its Long-Term Debt to Total Capital is 59.12. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 7.67 and its Total Debt to EBITDA Value is 2.12. The Enterprise Value to Sales for this firm is now 1.19, and its Total Debt to Enterprise Value stands at 0.27. Omnicom Group Inc. [OMC] has a Price to Book Ratio of 6.44, a Price to Cash Flow Ratio of 9.68 and P/E Ratio of 13.94. These metrics all suggest that Omnicom Group Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Omnicom Group Inc. [OMC] earns $217,190 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 1.70 and its Total Asset Turnover is 0.62. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.90 and its Current Ratio is 0.90. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Omnicom Group Inc. [OMC] has 224.80M shares outstanding, amounting to a total market cap of $18.27B. Its stock price has been found in the range of 65.85 to 78.75. At its current price, it has moved by 3.17% from its 52-week high, and it has moved 23.39% from its 52-week low.
This stock’s Beta value is currently 0.70, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 79.23. This RSI suggests that Omnicom Group Inc. is currently Overbought.
Conclusion: Is Omnicom Group Inc. [OMC] a Reliable Buy?
Shares of Omnicom Group Inc. [OMC], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.