Omnicom Group Inc. (OMC)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Omnicom as a large, asset-light services business whose main assets are client relationships and people—120,000 employees—not factories. That can be a decent business, but advertising is cyclical and competitive, so I want proof of durable pricing power. The reported figures are mixed. In fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $6.4B, net income $656.0M, and diluted EPS $2.38; that follows positive net income in the first two quarters of 2026. But in FY2025, revenue was $17.3B and the company posted a net loss of $54.5M, or diluted EPS -$0.27, after FY2024 net income of $1.5B. FairStock's computed Lynch category is TURNAROUND—loss in the latest year after earlier profits—which fits that pattern. Financial health is not alarming on cash flow: trailing free cash flow is $2.4B and the FCF yield is 11.0%, and the dividend yield is 4.18%. Still, the Altman Z-score of 0.81 and debt-to-equity of 1.08 argue for caution, and ROE of 6.05% and ROCE of 5.09% are only modest. Valuation is the hard part: at the $79.83 close on 2026-10-26, the FairStock P/E is 215.76 and P/B is 2.27, while the Graham Number is $16.80, a margin of safety of -392.14%. A Piotroski F-score of 7/9 suggests recent improvement, but I would not confuse a turnaround with a bargain. The burden is on future filings to show the 2025 loss is behind it and that cash flow is durable before the price looks attractive.

In plain English: Omnicom provides advertising, marketing, and communications services with about 120,000 employees. The latest quarter showed solid sales and profit, but the prior full year ended in a loss, so the business looks mixed rather than clearly strong. At $79.83, the price looks high compared with reported profit and much higher than a simple value estimate; the dividend is helpful, but overall the numbers do not show an obvious bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer