Bull Rankings model

Omnicom Group Inc. (OMC) stock analysis

Advertising Agencies. Scored on the same transparent model behind the daily rankings.

★
OMC
Omnicom Group Inc. · Advertising Agencies
41.1Score
$76.48Oct 9 close$21.0B
1Y Target$102.00Analyst consensus · 12 analysts
5Y Target$178.40Compound horizon
10Y Target$318.83Long-dated conviction
FCF$2.4bTTM · 06/26
B
FCF $2.4b — solid, comfortably covers operations and capital return · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+10.1%FY YoY
B
Revenue +10.1% — at or above S&P median · Computed from the last two annual revenue figures (FY YoY).
D/E1.08
C+
D/E 1.08 — above the Communication Services debt median (≈75th pctile)
P/S*0.9x
A-
P/S 0.9x — cheaper than most Communication Services peers (≈25th pctile)
PEG15.97
D
PEG 15.97 — very expensive; pricing in best-case scenarios

* P/S replaces P/E — no positive earnings to divide by

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 41.1
Quality45.0
Growth73.3
Value21.1
Why this score
  • Raising its dividend
  • Diluting shareholders
Entry · Margin of safety
52-week rangeMid-range
15% off the 12-month high
vs DCF fair value61% belowest. fair value ~$194
What the price assumes: free cash flow shrinking about 14% next year, then recovering toward 4% a year by year ten — vs a starting rate of ~10% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Advertising Agencies · market cap $21.0b. 15% off the 52-week high of $89.57. Revenue growing +10%, comfortably above the S&P median. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $102.00 (implying +33% upside).
Moat
Free cash flow runs well ahead of reported net income.
Risk
Dividend payout 816% of earnings on a 4.2% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Net margin 1.7% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $102.00 (12-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $178.40 — requires the platform / technology to reach commercial scale. 10 yr $318.83 — return distribution heavily skewed.

OMC vs the Top Picks average

PillarOMCBook avgDiff
Quality4583-38
Growth7389-16
Value2176-55

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
+1.2 over 82 daily scores
From 39.9 (Jun 22) → 41.1 (now)

One point per daily run; read From → To for the actual range.

OMC at a glance

THE BULL RANKINGS SCORECARD41.1/ 100 · BULL SCOREPEER MEDIANQUALITY45.0GROWTH73.3VALUE21.1Reverse-DCF · Price implies roughly no growth from here.
PRICE vs OUR DCF FAIR VALUE$179$220FAIR-VALUE RANGE$76.5PRICEOur DCF fair value ~$194 · price $76.5 is 61% below it.
PRICE IN ITS 52-WEEK RANGE$76.5LOW $66.3HIGH $89.6Trading at the 44th percentile of its 52-week range ($66.3–$89.6).
WHERE THIS SCORE SITS0255075100OMC 41.1Ranks above 36% of 1,709 companies on the quality-growth score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-3.2%
90-day change-4.8%
Forward EPS estimate$11.66

Over the last 90 days, what analysts expect OMC to earn is drifting lower (-4.8%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
26
Position size
$1,988
4.0% of portfolio
Stop price
$57.36
25% below $76.48
$ at risk if stopped
$497.12
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Omnicom Group Inc. (OMC): score, valuation & FAQ

Omnicom Group Inc. (OMC) is an Advertising Agencies company that scores 41.1 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/S (A-), while PEG (D) rate weaker. On valuation, OMC sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking about 14% next year, then recovering toward 4% a year by year ten.

Is OMC a good stock to buy?

Bull Rankings scores OMC 41.1 out of 100 on its quality-growth model, which is a below-average reading. That is driven by P/S (A-). A score is a quantitative screen of Omnicom Group Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does OMC score 41.1 on Bull Rankings?

The score leans on growth at 73.3 out of 100, with value the weakest pillar at 21.1 — the three combine geometrically, so a weak one cannot be papered over by a strong one. OMC earns its highest marks on P/S (A-), and is held back by PEG (D). Each signal is graded against sector-aware thresholds rather than one absolute bar, so OMC is measured against Advertising Agencies peers, not against the market as a whole.

Is OMC overvalued or undervalued?

Based on $76.48, OMC sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking about 14% next year, then recovering toward 4% a year by year ten. Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in OMC?

Dividend payout 816% of earnings on a 4.2% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Net margin 1.7% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? See the guides and the methodology.

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