Omnicom Group Inc logo

Omnicom Group Inc(OMC)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$74.87
10/07/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for OMC

10/07/2026: OMC (1-star) is currently NOT-A-BUY. Pass it for now.

Omnicom Group Inc is a global marketing and communications holding company that provides creative, media planning, and precision marketing services. The company has a leading position in the advertising industry, supported by its proprietary 'Omni' data platform and long-term relationships with blue-chip global clients. Its primary growth strategy involves expanding into digital commerce and retail media, evidenced by the recent acquisition of Flywheel Digital. While Omnicom benefits from steady cash flow and consistent dividend payments, it faces risks from cyclical economic downturns and competition from digital-first firms. The stock may best suit value and income-focused investors who should monitor digital adoption and ad spend trends.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers moderate growth potential tied to digital advertising trends rather than explosive, high-growth tech expansion.
Momentum investorMixed fitMomentum fit is conditional on a positive market upturn and upward earnings revisions which currently show steady trends.
Value investorStrong fitOmnicom often trades at reasonable earnings multiples relative to its steady cash flow generation.
Dividend investorStrong fitThe company has a consistent history of dividend payments and a stable payout ratio suitable for income-focused investors.
Low-risk investorMixed fitWhile established, the advertising industry is cyclical and sensitive to broader economic health, which introduces some volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumAd spending sensitivity to macro cycles can cause fluctuations in stock performance.
Valuation riskLowThe stock generally maintains reasonable valuation levels compared to historical averages.
Competition risk (Digital/Consultancy)Medium / highConsulting firms and digital-first agencies continue to challenge traditional advertising agencies for client budgets.
Business qualityStrongOmnicom operates a global, well-diversified agency network with long-term client relationships.
Dividend incomeStrongConsistent cash generation supports reliable and sustainable dividend payments.
Execution riskMediumMaintaining organic growth while integrating new digital acquisitions requires consistent operational discipline.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -23.25%
Avg. Invested days 48
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/07/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
OMC receives a 3-star rating, supported by solid analyst coverage. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
OMC has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, strong cash generation (FCF margin 16.1%) and solid revenue growth (+10.1%) are partially offset by negative earnings growth (-103.7%), weak profitability (net margin -0.3%), very low insider ownership of 0.93%.

Financial Health Rating

★★★★★
OMC's financial health is supported by solid cash strength, including free-cash-flow generation of $2.8B (16.1% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is OMC's strongest growth driver at +75.1% FY2025 versus FY2024 (strong, 5 stars). By comparison, revenue growth (+10.1%, solid) is also solid, while earnings growth (-103.7%, negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 110.7% and approximately 95.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.93%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 10.42%
State Street Corp 8.96%
Vanguard Capital Management, LLC 6.78%
Arnhold & S. Bleichroeder Advisers, LLC 5.35%
Vanguard Portfolio Management, LLC 4.91%

Unit Economics (Per $1K Revenue)

★★★★★
OMC generates approximately $173 of gross profit, $150 of operating income, and $161 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins explain the 2-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: 84.71%

Quantitative Style Profile

★★★★★
OMC has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Low VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 21.40B USD
Price to earnings Ratio 197.63
1Y Target Price 102.17
Price to earnings Ratio 197.63
1Y Target Price 102.17
Volume (30-day avg) 3.0M shares
Beta 0.7
52 Weeks Range 64.32 - 88.66
Updated Date 10/07/2026
52 Weeks Range 64.32 - 88.66
Updated Date 10/07/2026
Dividends yield (FY) 4.12%
Basic EPS (TTM) 0.38

How Company Makes Money

Business areaWhat it includesRetail investor read
Advertising & MediaCreative services, media planning, and buying.This is the core agency business that generates fees from large brands for ad campaigns.
Precision MarketingData-driven marketing, CRM, and digital analytics.A growing area focused on using consumer data to deliver targeted marketing.
GeographyOperations in North America, Europe, Asia Pacific, and Latin America.Diversification across regions helps mitigate country-specific economic risks.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 197.63
Forward PE 7.35
Enterprise Value 28.74B
Price to Sales(TTM) 0.92
Enterprise Value 28.74B
Price to Sales(TTM) 0.92
Enterprise Value to Revenue 1.29
Enterprise Value to EBITDA 16.58
Shares Outstanding 285.01M
Shares Floating 271.70M
Shares Outstanding 285.01M
Shares Floating 271.70M
Percent Insiders 0.93
Percent Institutions 110.72

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Omnicom Group Inc

Exchange NYSE
Headquarters New York, NY, United States
IPO Launch date 1990-03-26
Chairman & CEO Mr. John D. Wren
Sector Communication Services
Industry Advertising Agencies
Full time employees 120000
Full time employees 120000

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of media and advertising, precision marketing, public relations, healthcare, branding and retail commerce, experiential, execution, and support. The company's services include advertising, branding, content marketing, crisis communications, customer data analytics and data-driven decision making, customer relationship management, decision sciences, digital experience design, digital transformation, e-commerce optimization, entertainment marketing, experiential marketing, field marketing, healthcare marketing and communications, in-store design, investor relations, and marketing research.Its services also comprise media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, organizational communications, package design, performance marketing, product placement, promotional marketing, public affairs, public relations, retail media and e-commerce, shopper marketing, structured innovation, studio production, social media and influencer marketing, and sports and event marketing. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.

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