Omnicom Group Inc. — Advertising Agencies. Scored on the same transparent 7-signal model behind the daily rankings.
★
OMC
Omnicom Group Inc. · Advertising Agencies
FCF$3.0bB
Rev+10.1%B
D/E1.11C+
P/S1.2xB+
PEG15.97D
39.5Score
$80.83$23.0B
1Y Target$102.92Analyst consensus · 12 analysts
5Y Target$180.00Compound horizon
10Y Target$456.48Long-dated conviction
FCF$3.0bTTMB
FCF $3.0b — solid, comfortably covers operations and capital return
Rev+10.1%TTM YoYB
Revenue +10.1% — at or above S&P median
D/E1.11C+
D/E 1.11 — above the Communication Services debt median (≈75th pctile)
P/S1.2xB+
P/S 1.2x — below the Communication Services median (≈40th pctile)
PEG15.97D
PEG 15.97 — very expensive; pricing in best-case scenarios
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 39.5
Quality0.43
Growth0.65
Value0.22
Why this score
Raising its dividend
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
7% off the 12-month high
vs DCF fair value69% belowest. fair value ~$263
Quality signals · context only
Gross profitability4% · Cgross profit ÷ total assets (Novy-Marx)
ROIC2.7% · Creturn on invested capital — not score-weighted
Why now
Advertising Agencies · market cap $23.0b. 7% off the 52-week high of $87.17. Revenue growing +10%, comfortably above the S&P median. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $102.92 (implying +27% upside).
Moat
Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Net margin 0.3% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 1% 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. Platform dependency — much of the addressable ad budget flows through Google, Meta, and Amazon; an algorithm change or pricing shift on the platform side resets the economics overnight.
Horizon
1-3 yr $102.92 (12-analyst consensus) — catalyst-driven; binary events dominate. 5 yr $180.00 — requires the platform / technology to reach commercial scale. 10 yr $456.48 — return distribution heavily skewed.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · OMC
$
%
%
Shares to buy
24
Position size
$1,940
3.9% of portfolio
Stop price
$60.62
25% below $80.83
$ at risk if stopped
$484.98
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Omnicom Group Inc. (OMC): score, valuation & FAQ
Omnicom Group Inc. (OMC) is a Advertising Agencies company that scores 39.5 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 (B+), while PEG (D) rate weaker. On valuation, OMC sits about 69% below our discounted-cash-flow fair value (a margin of safety).
Is OMC a good stock to buy?
Bull Rankings scores OMC 39.5 out of 100 on its quality-growth model, which is a below-average reading. That is driven by P/S (B+). 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 39.5 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). OMC earns its highest marks on P/S (B+), and is held back by PEG (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is OMC overvalued or undervalued?
Based on $80.83, OMC sits about 69% below our discounted-cash-flow fair value (a margin of safety). 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?
Net margin 0.3% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 1% 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. Platform dependency — much of the addressable ad budget flows through Google, Meta, and Amazon; an algorithm change or pricing shift on the platform side resets the economics overnight.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.