# Omnicom Group (OMC.US)

Canonical: https://gigainvestors.com/s/OMC

Analysis as of: 2026-10-16T07:30:53.452Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $80.72 per share; close as of 2026-10-15.

Estimated value: low $96.03 per share, central $107.88 per share, high $123.64 per share. Buy at or below the central value $107.88 per share. Valuation as of 2026-10-16T07:30:53.452Z; scenarios are not confidence intervals.

Expected annual return: 12.8% at the stated quote. About 12.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.14×

- FY2018: 0.14×

- FY2019: 0.14×

- FY2020: 0.12×

- FY2021: 0.15×

- FY2022: 0.15×

- FY2023: 0.14×

- FY2024: 0.14×

- FY2025: 0.03×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 15.8%

- ROIC, second-lowest year: 11.6%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 17.0%

- Recent gross margin (lower of latest and 3-year median): 17.3%

- Years with nonpositive capital: 10

- Capital spending / revenue: 0.9%

- ROIC including acquisitions, ten-year median: 24.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 19.3%

- FY2017: 18.0%

- FY2018: 21.4%

- FY2019: 16.9%

- FY2020: 11.6%

- FY2021: 16.4%

- FY2022: 15.1%

- FY2023: 15.3%

- FY2024: 15.2%

- FY2025: 1.2%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.7B

- Net income, five-year total: $5.5B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.3 pp

- Working capital / revenue, final three-year average: -12.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.78×

- FY2022: 1.10×

- FY2023: 1.09×

- FY2024: 1.06×

- FY2025: -1.33×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.3% vs 15.2%

- Per-share earnings: 4.65 to 6.91 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.8%

- Ordinary dilution, 5-year annual growth: -1.1%

- Market cap gain: $5.3B

- Cumulative retained earnings: $5.1B

- Diluted shares, 10-year annual growth: -1.8%

- Diluted shares, 5-year annual growth: -1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.1%

- Per-share value change: $2.26

- Per-share value, starting three-year median: $4.65

- Per-share value, ending three-year median: $6.91

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 3.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.3B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 19.3%

- ROIC, last three-year median: 15.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.80

- FY2017: $4.65

- FY2018: $5.83

- FY2019: $6.06

- FY2020: $4.40

- FY2021: $6.47

- FY2022: $6.28

- FY2023: $6.91

- FY2024: $7.46

- FY2025: -$0.27

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.5%

- Receivables to sales index (DSRI): 1.42×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 3.4%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.97×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.4%

- FY2017: -3.8%

- FY2018: -1.6%

- FY2019: -1.9%

- FY2020: -2.8%

- FY2021: -1.9%

- FY2022: 1.4%

- FY2023: -0.1%

- FY2024: -0.9%

- FY2025: -5.5%

## Holders

- [John Rogers](https://gigainvestors.com/AI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Harry Burn](https://gigainvestors.com/SSHFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Nov 2024 · "Repositioning Costs: $89 million during Q2 2025." (finance.yahoo.com, Jul 2025) · sales +10.1%

Story as of 2026-10-16T09:59:19.476Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.2% a year for ten years

- 2025-04-15: Omnicom Gives More Cautious 2025 Outlook as Tariffs Create Uncertainty About Ad Spending ([finance.yahoo.com](https://finance.yahoo.com/m/5b9a746f-81f5-3599-a4dd-d848dfdca255/omnicom-gives-more-cautious.html))

- 2025-08-21: Acquisition Plans Drive Momentum After Strong Quarter Results for Omnicom Group ([finance.yahoo.com](https://finance.yahoo.com/news/acquisition-plans-drive-momentum-strong-175155931.html))

- 2026-02-20: Omnicom (OMC) Climbs 15% on Dividend, $5-Billion Buyback ([finance.yahoo.com](https://finance.yahoo.com/news/omnicom-omc-climbs-15-dividend-093331859.html))

- 2026-04-29: Omnicom outlines $900M 2026 synergies and plans to finish $5B buyback by April 2027 ([seekingalpha.com](https://seekingalpha.com/news/4581240-omnicom-outlines-900m-2026-synergies-and-plans-to-finish-5b-buyback-by-april-2027?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +10.1%; source https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm; observed 2026-02-20.

- FY2016: $15B 

- FY2017: $15B 

- FY2018: $15B 

- FY2019: $15B 

- FY2020: $13B 

- FY2021: $14B 

- FY2022: $14B 

- FY2023: $15B 

- FY2024: $16B 

- FY2025: $17B 

### Gross margin · FY2025

gross margin 17.3%; source https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm; observed 2026-02-20.

- FY2016: 15.9% 

- FY2017: 16.5% 

- FY2018: 16.7% 

- FY2019: 16.9% 

- FY2020: 15.8% 

- FY2021: 17.7% 

- FY2022: 18.0% 

- FY2023: 17.0% 

- FY2024: 17.5% 

- FY2025: 17.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in advertising agencies; annual sales are USD 17.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); FY2025: revenue 17271900000; grossProfit 2984500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OMC.US: 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.

### Why customers stay

Margins ranged from 17% to 17.5% during 2023–25; it earns 15.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 17%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 17.5%.

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 17.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.19270901565072043],[2017,0.17964269609273456],[2018,0.21370781438357284],[2019,0.16937208200090284],[2020,0.11625595506744897],[2021,0.16364949553037006],[2022,0.15062145295094787],[2023,0.15334257855047476],[2024,0.15159666974221708],[2025,0.011642908642711275]]; median 0.15849603704042242. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 18% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); Gross margin observations: [[2021,0.17685137234593476],[2022,0.1802212875548495],[2023,0.17004941397476211]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 707.9 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 165500000; owner earnings 1266485797.1481512. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 156000000; owner earnings 1203859947.8421805. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 195700000; owner earnings 1389681028.2201731. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 102200000; owner earnings 1459851537.7641397. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 75400000; owner earnings 1087455975.0875826. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 116179743.2388736; upkeep 549620256.7611264; owner earnings 1081592086.9703166. Growth capex / owner earnings = 0.10741548929440536.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 78200000; cash acquisitions 241300000; owner earnings 1430584956.3849564. Growth capex plus acquisitions / owner earnings = 0.16867226159693277.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 78400000; cash acquisitions 93300000; owner earnings 1516731781.1566658. Growth capex plus acquisitions / owner earnings = 0.061513842565393495.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 140600000; cash acquisitions 902100000; owner earnings 1575700800.5082593. Growth capex plus acquisitions / owner earnings = 0.5725071661504633.

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 149800000; cash acquisitions 1079500000; owner earnings 72400000. Growth capex plus acquisitions / owner earnings = 14.910220994475138.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,505400000],[2017,515200000],[2018,548500000],[2019,564300000],[2020,562700000],[2021,592300000],[2022,581100000],[2023,562700000],[2024,552700000],[2025,549600000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 707900000 USD.

### Are managers owners

Insiders own 0.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OMC.US SharesStats.PercentInsiders = 0.9400000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Currency exchange rate fluctuations have impacted, and in the future could impact" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm (filed 2026-02-20); Currency exchange rate fluctuations have impacted, and in the future could impact

### What the price says

The price assumes cash profits shrink 3.2% yearly over ten years; actual decline was 22.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate -0.057691746866979254. Price 80.72; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.791277072085292 → FY2025 0.35334309419228893. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $79.82 per share

- 2016-11: $86.94 per share

- 2016-12: $85.11 per share

- 2017-01: $85.65 per share

- 2017-02: $85.10 per share

- 2017-03: $86.21 per share

- 2017-04: $82.12 per share

- 2017-05: $83.72 per share

- 2017-06: $82.90 per share

- 2017-07: $78.74 per share

- 2017-08: $72.38 per share

- 2017-09: $74.07 per share

- 2017-10: $67.19 per share

- 2017-11: $71.44 per share

- 2017-12: $72.83 per share

- 2018-01: $76.65 per share

- 2018-02: $76.23 per share

- 2018-03: $72.67 per share

- 2018-04: $73.66 per share

- 2018-05: $72.08 per share

- 2018-06: $76.27 per share

- 2018-07: $68.83 per share

- 2018-08: $69.32 per share

- 2018-09: $68.02 per share

- 2018-10: $74.32 per share

- 2018-11: $76.97 per share

- 2018-12: $73.24 per share

- 2019-01: $77.88 per share

- 2019-02: $75.70 per share

- 2019-03: $72.99 per share

- 2019-04: $80.03 per share

- 2019-05: $77.36 per share

- 2019-06: $81.95 per share

- 2019-07: $80.22 per share

- 2019-08: $76.06 per share

- 2019-09: $78.30 per share

- 2019-10: $77.19 per share

- 2019-11: $79.48 per share

- 2019-12: $81.02 per share

- 2020-01: $75.31 per share

- 2020-02: $69.28 per share

- 2020-03: $54.90 per share

- 2020-04: $57.03 per share

- 2020-05: $54.79 per share

- 2020-06: $54.60 per share

- 2020-07: $53.73 per share

- 2020-08: $54.09 per share

- 2020-09: $49.50 per share

- 2020-10: $47.20 per share

- 2020-11: $63.00 per share

- 2020-12: $62.37 per share

- 2021-01: $62.38 per share

- 2021-02: $68.73 per share

- 2021-03: $74.15 per share

- 2021-04: $82.26 per share

- 2021-05: $82.24 per share

- 2021-06: $79.99 per share

- 2021-07: $72.82 per share

- 2021-08: $73.22 per share

- 2021-09: $72.46 per share

- 2021-10: $68.08 per share

- 2021-11: $67.31 per share

- 2021-12: $73.27 per share

- 2022-01: $75.36 per share

- 2022-02: $83.89 per share

- 2022-03: $84.88 per share

- 2022-04: $76.13 per share

- 2022-05: $74.61 per share

- 2022-06: $63.61 per share

- 2022-07: $69.84 per share

- 2022-08: $66.90 per share

- 2022-09: $63.09 per share

- 2022-10: $72.75 per share

- 2022-11: $79.76 per share

- 2022-12: $81.57 per share

- 2023-01: $85.99 per share

- 2023-02: $90.57 per share

- 2023-03: $94.34 per share

- 2023-04: $90.57 per share

- 2023-05: $88.19 per share

- 2023-06: $95.15 per share

- 2023-07: $84.62 per share

- 2023-08: $81.01 per share

- 2023-09: $74.48 per share

- 2023-10: $74.91 per share

- 2023-11: $80.63 per share

- 2023-12: $86.51 per share

- 2024-01: $90.38 per share

- 2024-02: $88.39 per share

- 2024-03: $96.76 per share

- 2024-04: $92.84 per share

- 2024-05: $92.96 per share

- 2024-06: $89.70 per share

- 2024-07: $98.04 per share

- 2024-08: $100.43 per share

- 2024-09: $103.39 per share

- 2024-10: $101.00 per share

- 2024-11: $104.82 per share

- 2024-12: $86.04 per share

- 2025-01: $86.79 per share

- 2025-02: $82.76 per share

- 2025-03: $82.91 per share

- 2025-04: $76.16 per share

- 2025-05: $73.44 per share

- 2025-06: $71.94 per share

- 2025-07: $72.05 per share

- 2025-08: $78.33 per share

- 2025-09: $81.53 per share

- 2025-10: $75.02 per share

- 2025-11: $71.62 per share

- 2025-12: $80.75 per share

- 2026-01: $77.04 per share

- 2026-02: $85.29 per share

- 2026-03: $75.31 per share

- 2026-04: $76.72 per share

- 2026-05: $72.71 per share

- 2026-06: $72.83 per share

- 2026-07: $78.70 per share

- 2026-08: $87.53 per share

- 2026-09: $73.63 per share

- 2026-10: $80.72 per share

## Annual estimated value (USD per share)

- FY2016: low $65.02 per share, central $72.53 per share, high $82.54 per share

- FY2017: low $69.07 per share, central $76.71 per share, high $86.88 per share

- FY2018: low $71.52 per share, central $79.50 per share, high $90.13 per share

- FY2019: low $77.74 per share, central $86.12 per share, high $97.27 per share

- FY2020: low $77.83 per share, central $85.41 per share, high $95.50 per share

- FY2021: low $81.52 per share, central $89.77 per share, high $100.75 per share

- FY2022: low $86.78 per share, central $96.24 per share, high $108.82 per share

- FY2023: low $97.25 per share, central $107.98 per share, high $122.27 per share

- FY2024: low $105.52 per share, central $117.44 per share, high $133.30 per share

- FY2025: low $124.14 per share, central $136.86 per share, high $153.79 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/29989/000002998926000006/omc-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.