Omnicom Group Stock Price and Value Analysis

Should you buy Omnicom Group stock? (NYSE:OMC). Let's see how it does in our automated value investing analysis system.

OMC Free Cash Flow Trend

Free Cash Flow trendline for OMC
Free Cash Flow trendline for Omnicom Group

Based on historical returns, we believe that Omnicom Group can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantagesNeutral
  • This company has amazingly consistent growth!
  • This company has a large dividend yield!
  • This company is very stable.
  • This company is making money at a modest rate.
  • This stock looks fairly priced.

Inside the OMC Numbers

OMC Price
(Omnicom Group stock price per share)
$74.51
[?] OMC Fair Price
(based on intrinsic value)
$72.46
[?] OMC Safety Price (based on a variable margin of safety) $57.97
[?] PE Ratio versus Sector 3% higher than other Technology stocks
[?] PE Ratio versus Industry 6% lower than other Advertising Agencies stocks
[?] Cash Yield 14.04%
[?] Free Cash Flow Jitter 11%
[?] Dividend Yield 4%
Shares Shorted 10,050,837

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 10,050,837 shares shorted. With 213,492,088 shares available for purchase and an average trading volume over the past 10 trading days of 1,718,628, it would take at least 5.848 days for all of the short holders to cover their shorts.

Is Omnicom Group Stock on Sale?

We believe that Omnicom Group may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Omnicom Group looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy OMC Stock?

Does Omnicom Group have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.