A Business at a Glance
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OMNICOM GROUP INC.
OMC
$16.1B
Mkt Cap
$79.66
+2.26%
OMNICOM GROUP INC. (OMC) has a 5-year average return on invested capital (ROIC) of 23.7%. This indicates strong capital allocation and a potential competitive advantage.
OMNICOM GROUP INC. (OMC) has a market capitalization of $23.8B. It is classified as a large-cap stock.
Yes, OMNICOM GROUP INC. (OMC) pays a dividend with a trailing twelve-month yield of 2.78%. The company also returns capital through share buybacks, with a buyback yield of 14.28%.
OMNICOM GROUP INC. (OMC) operates in the Services-Advertising Agencies industry, within the Industrials sector.
OMNICOM GROUP INC. (OMC) reported annual revenue of $17.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
OMNICOM GROUP INC. (OMC) has a net profit margin of -0.3%. The company is currently unprofitable.
OMNICOM GROUP INC. (OMC) generated $2.8 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Omnicom is a strategic holding company that operates through global networks, connected capabilities, and specialized agencies delivering marketing, sales, communications, and commerce services to major global companies. Following its November 2025 merger with Interpublic Group, the combined company operates through four global networks—Omnicom Advertising (including BBDO, TBWA, and McCann), Omnicom Media (including OMD, PHD, and UM), the DAS Group of Companies (precision marketing and health), and the Communications Consultancy Network (public relations and communications)—supported by the integrated Omni technology platform featuring data, identity management, and generative AI capabilities. The company's service offerings span media planning and buying, creative advertising, precision marketing, public relations, healthcare communications, branding, retail commerce, experiential marketing, and execution support across the Americas, EMEA, and Asia-Pacific regions. Omnicom operates on a client-centric matrix organization model where multiple agencies and disciplines collaborate through formal structures such as Global Growth Teams and Client Success Leaders to deliver coordinated solutions; the company's largest client represented 2.4% of revenue in 2025 and was served by approximately 144 agencies, while the top 100 clients represented approximately 54% of revenue. The business model emphasizes expanding service offerings to existing clients, entering new markets, and pursuing selective acquisitions of complementary companies with strong management teams, while leveraging proprietary technology and AI capabilities to enhance client outcomes and operational efficiency.
【Integration and synergy realization】 Management expects to achieve $900 million of the $1.5 billion targeted run-rate synergies in 2026, with the majority flowing through to the bottom line, driven by labor cost reductions through elimination of duplicative functions, streamlining of regional and brand structures, and acceleration of outsourcing and offshoring initiatives. The company remains on track to achieve its operating plans and targets, including 4% constant currency organic growth for core retained businesses, and expects continued positive foreign exchange benefits of approximately 1% to reported revenue in 2026 assuming recent FX rates remain stable. Net interest expense is projected to increase by approximately $200 million in 2026 compared to 2025, primarily from the inclusion of IPG's debt and refinancing activities, while the company maintains a disciplined capital allocation approach and expects to continue investing in platforms and technologies including generative AI capabilities integrated into the Omni platform. Management anticipates higher double-digit adjusted EPS growth in 2026 beyond first-quarter performance, supported by share count accretion from the merger and operational leverage from synergy realization.
| Metric | Target | Period |
|---|---|---|
| Cost synergies (run-rate) | $1.5 billion | Over 30 months from merger closing (November 2025) |
| Cost synergies | $900 million | FY2026 |
| Net interest expense | Increase of approximately $200 million | FY2026 compared to FY2025 |
| Foreign exchange benefit to reported revenue | Approximately 1% | FY2026 |
| Tax rate | 26% | FY2026 |
| Organic growth (constant currency, core retained businesses) | 4% | FY2026 |
Cost synergies (run-rate) (Over 30 months from merger closing (November 2025)): “We now expect our annual run rate synergies to double from our initial estimate of $750 million to $1.5 billion over the next 30 months.”
Cost synergies (FY2026): “We expect to achieve $900 million of these savings in 2026.”
Net interest expense (FY2026 compared to FY2025): “Net interest expense is expected to increase by approximately $200 million in 2026 compared to 2025.”
Foreign exchange benefit to reported revenue (FY2026): “We expect FX will continue to be positive in 2026, and assuming recent FX rates stay the same, will benefit our reported revenue for the year by approximately 1%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 19.8B | 17.3B | 15.7B | 14.7B | 14.3B | 14.3B |
| Net Income | 63M | -55M | 1.5B | 1.4B | 1.3B | 1.4B |
| EPS | $1.39 | $-0.27 | $7.46 | $6.91 | $6.36 | $6.53 |
| Free Cash Flow | 3.0B | 2.8B | 1.6B | 1.3B | 848M | 1.3B |
| ROIC | 1.6% | 2.4% | 23.6% | 24.9% | 30.4% | 37.4% |
| Gross Margin | - | 8.5% | 18.6% | 18.4% | 18.8% | 19.5% |
| Debt/Equity | 0.26 | 0.89 | 1.45 | 1.78 | 1.73 | 1.75 |
| Dividends/Share | $2.22 | $2.90 | $2.80 | $2.80 | $2.80 | $2.80 |
| Operating Income | 638M | 445M | 2.3B | 2.1B | 2.1B | 2.2B |
| Operating Margin | 3.2% | 2.6% | 14.5% | 14.3% | 14.6% | 15.4% |
| ROE | 0.7% | -0.7% | 37.9% | 40.5% | 40.4% | 44.3% |
| Shares Outstanding | 299M | 202M | 198M | 201M | 207M | 216M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 15.3B | 15.1B | 15.4B | 15.3B | 15.3B | 15.0B | 13.2B | 14.3B | 14.3B | 14.7B | 15.7B | 17.3B | 19.8B |
| Gross Margin | 17.7% | 17.5% | 17.9% | 18.4% | 18.7% | 18.5% | 16.6% | 19.5% | 18.8% | 18.4% | 18.6% | 8.5% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 477M | 432M | 444M | 440M | 455M | 406M | 361M | 380M | 379M | 394M | 408M | 746M | 852M |
| EBIT | 1.9B | 1.9B | 2.0B | 2.1B | 2.1B | 2.1B | 1.6B | 2.2B | 2.1B | 2.1B | 2.3B | 445M | 638M |
| Op. Margin | 12.7% | 12.7% | 13.2% | 13.6% | 14.0% | 14.2% | 12.1% | 15.4% | 14.6% | 14.3% | 14.5% | 2.6% | 3.2% |
| Net Income | 1.1B | 1.1B | 1.1B | 1.1B | 1.3B | 1.3B | 945M | 1.4B | 1.3B | 1.4B | 1.5B | -55M | 63M |
| Net Margin | 7.2% | 7.2% | 7.5% | 7.1% | 8.7% | 9.0% | 7.2% | 9.9% | 9.2% | 9.5% | 9.4% | -0.3% | 0.3% |
| Non-Recurring | 0 | 0 | 0 | 0 | 178M | 0 | 278M | 51M | 0 | 270M | 58M | 700M | 1.3B |
| Returns on Capital | |||||||||||||
| ROIC | 23.7% | 22.4% | 25.9% | 32.1% | 31.9% | 31.8% | 27.1% | 37.4% | 30.4% | 24.9% | 23.6% | 2.4% | 1.6% |
| ROE | 34.3% | 41.3% | 49.8% | 45.6% | 51.4% | 49.6% | 31.8% | 44.3% | 40.4% | 40.5% | 37.9% | -0.7% | 0.7% |
| ROA | 5.1% | 5.0% | 5.1% | 4.5% | 5.4% | 5.2% | 3.5% | 5.0% | 4.8% | 5.1% | 5.1% | -0.1% | 0.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.5B | 2.2B | 2.0B | 2.0B | 1.7B | 1.9B | 1.7B | 1.9B | 927M | 1.4B | 1.7B | 2.9B | 3.2B |
| Free Cash Flow | 1.3B | 2.0B | 1.8B | 1.9B | 1.5B | 1.8B | 1.6B | 1.3B | 848M | 1.3B | 1.6B | 2.8B | 3.0B |
| Owner Earnings | 1.1B | 1.8B | 1.6B | 1.7B | 1.4B | 1.6B | 1.4B | 1.6B | 625M | 1.1B | 1.4B | 2.6B | 2.7B |
| CapEx | 213M | 203M | 166M | 156M | 196M | 102M | 75M | 666M | 78M | 78M | 141M | 150M | 182M |
| Maint. CapEx | 294M | 291M | 293M | 282M | 264M | 232M | 223M | 212M | 219M | 211M | 242M | 277M | 385M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 454M | 0 | 0 | 0 | 0 | 0 |
| D&A | 294M | 291M | 293M | 282M | 264M | 232M | 223M | 212M | 219M | 211M | 242M | 277M | 385M |
| CapEx/OCF | 14.4% | 9.3% | 8.5% | 7.7% | 11.4% | 5.5% | 4.4% | 34.2% | 8.4% | 5.5% | 8.1% | 5.1% | 5.7% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 468M | 497M | 505M | 515M | 549M | 564M | 563M | 592M | 581M | 563M | 553M | 550M | 664M |
| Dividend Yield | 3.7% | 3.9% | 3.6% | 3.8% | 4.3% | 4.2% | 5.4% | 4.4% | 4.3% | 3.6% | 3.1% | 3.6% | 2.8% |
| Share Buybacks | 1.1B | 728M | 602M | 568M | 581M | 610M | 222M | 527M | 611M | 571M | 371M | 708M | 3.4B |
| Buyback Yield | 7.6% | 5.4% | 4.0% | 4.4% | 4.5% | 4.3% | 2.0% | 3.8% | 4.0% | 3.5% | 2.2% | 4.4% | 14.3% |
| Stock-Based Comp | 94M | 99M | 93M | 80M | 71M | 73M | 71M | 85M | 82M | 85M | 91M | 101M | 107M |
| Debt Repayment | 0 | 0 | 1.0B | 0 | 0 | 900M | 600M | 1.3B | 0 | 0 | 750M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 2.1B | 2.9B | 1.9B | 1.1B | 1.7B | 870M | 276M | 420M | 1.3B | 2.0B | 1.8B | 3.9B | -1.8B |
| Cash & Equiv. | 2.4B | 2.6B | 3.0B | 3.8B | 3.7B | 4.3B | 5.6B | 5.3B | 4.3B | 4.4B | 4.3B | 6.9B | 4.3B |
| Long-Term Debt | 4.5B | 4.5B | 4.9B | 4.9B | 4.9B | 5.1B | 5.8B | 5.7B | 5.6B | 5.7B | 6.1B | 9.3B | 2.4B |
| Debt/Equity | 1.58 | 2.25 | 2.28 | 1.88 | 2.12 | 1.81 | 1.91 | 1.75 | 1.73 | 1.78 | 1.45 | 0.89 | 0.26 |
| Interest Coverage | 11.0 | 10.6 | 8.8 | 8.4 | 8.0 | 8.7 | 7.2 | 9.3 | 10.0 | 9.6 | 9.2 | 1.7 | 2.0 |
| Equity | 2.9B | 2.5B | 2.2B | 2.6B | 2.5B | 2.9B | 3.1B | 3.3B | 3.3B | 3.6B | 4.2B | 12.0B | 9.4B |
| Total Assets | 21.4B | 22.1B | 23.2B | 24.9B | 24.6B | 26.8B | 27.6B | 28.4B | 27.0B | 28.0B | 29.6B | 54.4B | 50.0B |
| Total Liabilities | 18.1B | 19.2B | 20.5B | 21.8B | 21.5B | 23.4B | 24.1B | 24.6B | 23.2B | 23.8B | 24.9B | 41.7B | 194M |
| Intangibles | 389M | 345M | 427M | 368M | 383M | 338M | 299M | 298M | 313M | 367M | 522M | 5.1B | 4.9B |
| Retained Earnings | 9.6B | 10.2B | 5.7B | 6.2B | 7.0B | 7.8B | 8.2B | 9.0B | 9.7B | 10.6B | 11.5B | 10.8B | 11.0B |
| Working Capital | -981M | -2.2B | -1.3B | -993M | -1.5B | -1.4B | 65M | -317M | -440M | -862M | -77M | -2.1B | -2.2B |
| Current Assets | 11.1B | 12.0B | 12.7B | 14.1B | 13.7B | 14.6B | 15.6B | 15.9B | 14.6B | 15.4B | 16.2B | 27.5B | 23.2B |
| Current Liabilities | 12.1B | 14.2B | 14.0B | 15.1B | 15.3B | 16.0B | 15.5B | 16.2B | 15.1B | 16.2B | 16.3B | 29.5B | 25.4B |
| Per Share Data | |||||||||||||
| EPS | 4.24 | 4.41 | 4.78 | 4.65 | 5.83 | 6.06 | 4.37 | 6.53 | 6.36 | 6.91 | 7.46 | -0.27 | 1.39 |
| Owner EPS | 4.18 | 7.29 | 6.52 | 7.10 | 6.10 | 7.02 | 6.62 | 7.65 | 3.02 | 5.59 | 7.06 | 12.69 | 8.96 |
| Book Value | 10.95 | 9.89 | 9.00 | 11.17 | 11.20 | 12.92 | 14.26 | 15.17 | 15.71 | 17.96 | 21.13 | 59.68 | 31.54 |
| Cash Flow/Share | 5.67 | 8.87 | 8.13 | 8.65 | 7.57 | 8.40 | 7.97 | 9.02 | 4.48 | 7.06 | 8.73 | 14.56 | 1.50 |
| Dividends/Share | 1.90 | 2.00 | 2.15 | 2.25 | 2.40 | 2.60 | 2.60 | 2.80 | 2.80 | 2.80 | 2.80 | 2.90 | 2.22 |
| Shares Out. | 260.4M | 248.0M | 240.3M | 234.1M | 227.5M | 221.0M | 216.3M | 215.6M | 207.0M | 201.4M | 198.5M | 201.9M | 299.2M |
| Valuation | |||||||||||||
| P/E Ratio | 12.7 | 12.4 | 13.1 | 11.9 | 9.6 | 10.7 | 12.0 | 9.8 | 11.5 | 11.7 | 11.2 | N/A | 57.2 |
| P/FCF | 11.1 | 6.8 | 8.4 | 6.9 | 8.4 | 8.2 | 6.9 | 10.8 | 17.8 | 12.2 | 10.4 | 5.8 | 8.0 |
| EV/EBIT | 8.3 | 6.7 | 8.5 | 6.7 | 6.6 | 7.2 | 3.7 | 6.5 | 7.9 | 8.3 | 8.0 | 41.4 | 34.5 |
| Price/Book | 4.9 | 5.5 | 7.0 | 4.9 | 5.0 | 5.0 | 3.7 | 4.2 | 4.6 | 4.5 | 3.9 | 1.3 | 2.5 |
| Price/Sales | 0.8 | 0.8 | 0.9 | 0.9 | 0.8 | 0.9 | 0.8 | 0.9 | 0.9 | 1.1 | 1.1 | 0.9 | 1.2 |
| FCF Yield | 9.0% | 14.8% | 11.8% | 14.5% | 11.9% | 12.2% | 14.6% | 9.3% | 5.6% | 8.2% | 9.6% | 17.3% | 12.5% |
| Market Cap | 14.0B | 13.5B | 15.1B | 12.9B | 12.8B | 14.4B | 11.3B | 13.8B | 15.1B | 16.3B | 16.5B | 16.2B | 23.8B |
| Avg. Price | 48.99 | 51.73 | 58.70 | 58.69 | 55.85 | 61.43 | 48.28 | 62.88 | 65.46 | 78.47 | 89.58 | 75.62 | 79.66 |
| Year-End Price | 53.68 | 54.49 | 62.81 | 55.20 | 56.21 | 64.96 | 52.37 | 64.04 | 72.99 | 81.12 | 83.36 | 80.03 | 79.66 |
OMNICOM GROUP INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
On a free-cash-flow basis, the stock trades at 8.9x vs a median of 8.4x. The company's 5-year average ROIC is 23.7% with a gross margin of 16.8%. Total shareholder yield (dividends + buybacks) is 17.1%. At current prices, the estimated annualized return to fair value is -1.4%.
OMNICOM GROUP INC. (OMC) has a debt-to-equity ratio of 0.89. This indicates moderate leverage.
OMNICOM GROUP INC. (OMC) reported earnings per share (EPS) of $-0.27 in its most recent fiscal year.
OMNICOM GROUP INC. (OMC) has a return on equity (ROE) of -0.7%. A negative ROE may indicate losses or negative equity.
OMNICOM GROUP INC. (OMC) has a 5-year average gross margin of 16.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for OMNICOM GROUP INC. (OMC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
OMNICOM GROUP INC. (OMC) has a book value per share of $59.68, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to achieve $900 million of the $1.5 billion targeted run-rate synergies in 2026, with the majority flowing through to the bottom line, driven by labor cost reductions through elimination of duplicative functions, streamlining of regional and brand structures, and acceleration of outsourcing and offshoring initiatives. The company remains on track to achieve its operating plans and targets, including 4% constant currency organic growth for core retained businesses, and expects continued positive foreign exchange benefits of approximately 1% to reported revenue in 2026 assuming recent FX rates remain stable. Net interest expense is projected to increase by approximately $200 million in 2026 compared to 2025, primarily from the inclusion of IPG's debt and refinancing activities, while the company maintains a disciplined capital allocation approach and expects to continue investing in platforms and technologies including generative AI capabilities integrated into the Omni platform. Management anticipates higher double-digit adjusted EPS growth in 2026 beyond first-quarter performance, supported by share count accretion from the merger and operational leverage from synergy realization.
Based on recent SEC filings and earnings calls, OMNICOM GROUP INC. (OMC) has provided the following forward guidance: Cost synergies (run-rate): $1.5 billion (Over 30 months from merger closing (November 2025)); Cost synergies: $900 million (FY2026); Net interest expense: Increase of approximately $200 million (FY2026 compared to FY2025); Foreign exchange benefit to reported revenue: Approximately 1% (FY2026); Tax rate: 26% (FY2026), plus 1 additional metric.
Tax rate (FY2026): “For 2026, we expect our annual tax rate to also be 26%.”
Organic growth (constant currency, core retained businesses) (FY2026): “You guys had provided an expectation of 4% constant currency growth for the core businesses.”