📊 OMC Key Takeaways
Is Omnicom Group Inc.. (OMC) a Good Investment?
Despite 10.1% revenue growth, Omnicom faces severe operational deterioration with net income down 224.7% YoY and negative operating cash flow of -$553.2M. The combination of liquidity constraints (current ratio 0.91x), high leverage ($10.2B debt), and collapsed profitability (ROE 4.3%, ROA 0.8%) indicates fundamental business stress that growth cannot offset.
Omnicom shows solid top-line growth and very strong cash generation, with free cash flow materially exceeding reported net income, which suggests the core business remains cash-productive. However, the latest period's sharp swing to a net loss, weak operating margin, and thin interest coverage materially weaken the fundamental picture. Overall, the company looks financially resilient but currently lacks clean earnings quality and margin strength.
Omnicom Group Inc.. Key Strengths (OMC)
- Revenue growth of 10.1% YoY demonstrates maintained client demand
- Cash reserves of $4.3B provide near-term liquidity buffer
- Interest coverage ratio of 5.4x indicates current ability to service debt obligations
- Revenue growth of 10.1% year over year indicates healthy demand and business momentum
- Strong operating cash flow of $2.94B and free cash flow of $2.79B support balance sheet flexibility
- Debt/equity of 0.77x is not excessive relative to equity and cash holdings of $6.88B provide liquidity support
OMC Stock Risks: Omnicom Group Inc.. Investment Risks
- Negative operating cash flow of -$553.2M and free cash flow of -$614.4M indicate the business cannot self-fund operations and is burning cash
- Current ratio of 0.91x signals working capital deficiency below critical 1.0x threshold with potential liquidity stress
- Net income down 224.7% YoY with EPS down 103.6% and critically low returns on assets (0.8%) and equity (4.3%) indicate severe profitability deterioration
- Net income turned negative and EPS deteriorated sharply, indicating major pressure on reported profitability
- Operating margin of 2.6% and interest coverage of 1.7x leave limited cushion if earnings remain weak
- Current ratio of 0.93x suggests tight short-term liquidity and reduces flexibility during volatility
Key Metrics to Watch
- Operating cash flow trajectory and return to positive territory
- Current ratio improvement and working capital management efficiency
- Net margin recovery drivers and profitability normalization timeline
- Net income and operating margin recovery
- Interest coverage and free cash flow conversion
Omnicom Group Inc.. (OMC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
OMC Profit Margin, ROE & Profitability Analysis
OMC vs Services Sector: How Omnicom Group Inc.. Compares
How Omnicom Group Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Omnicom Group Inc.. Stock Overvalued? OMC Valuation Analysis 2026
Based on fundamental analysis, Omnicom Group Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Omnicom Group Inc.. Balance Sheet: OMC Debt, Cash & Liquidity
OMC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Omnicom Group Inc..'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.91 reflects profitable operations.
OMC Revenue Growth, EPS Growth & YoY Performance
OMC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.7B | $287.7M | $1.35 |
| Q3 2025 | $3.9B | $341.3M | $1.75 |
| Q2 2025 | $3.9B | $257.6M | $1.31 |
| Q1 2025 | $3.6B | $287.7M | $1.45 |
| Q3 2024 | $3.6B | $371.9M | $1.86 |
| Q2 2024 | $3.6B | $328.1M | $1.65 |
| Q1 2024 | $3.4B | $227.5M | $1.11 |
| Q3 2023 | $3.4B | $364.5M | $1.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Omnicom Group Inc.. Dividends, Buybacks & Capital Allocation
OMC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Omnicom Group Inc.. (CIK: 0000029989)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OMC
What is the AI rating for OMC?
Omnicom Group Inc.. (OMC) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OMC's key strengths?
Claude: Revenue growth of 10.1% YoY demonstrates maintained client demand. Cash reserves of $4.3B provide near-term liquidity buffer. ChatGPT: Revenue growth of 10.1% year over year indicates healthy demand and business momentum. Strong operating cash flow of $2.94B and free cash flow of $2.79B support balance sheet flexibility.
What are the risks of investing in OMC?
Claude: Negative operating cash flow of -$553.2M and free cash flow of -$614.4M indicate the business cannot self-fund operations and is burning cash. Current ratio of 0.91x signals working capital deficiency below critical 1.0x threshold with potential liquidity stress. ChatGPT: Net income turned negative and EPS deteriorated sharply, indicating major pressure on reported profitability. Operating margin of 2.6% and interest coverage of 1.7x leave limited cushion if earnings remain weak.
What is OMC's revenue and growth?
Omnicom Group Inc.. reported revenue of $6.2B.
Does OMC pay dividends?
Omnicom Group Inc.. pays dividends, with $251.7M distributed to shareholders in the trailing twelve months.
Where can I find OMC SEC filings?
Official SEC filings for Omnicom Group Inc.. (CIK: 0000029989) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OMC's EPS?
Omnicom Group Inc.. has a diluted EPS of $1.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OMC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Omnicom Group Inc.. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OMC stock overvalued or undervalued?
Valuation metrics for OMC: ROE of 4.3% (sector avg: 16%), net margin of 6.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is OMC's AI grade for 2026?
Our dual AI analysis gives Omnicom Group Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OMC's free cash flow?
Omnicom Group Inc..'s operating cash flow is $-553.2M, with capital expenditures of $61.2M. FCF margin is -9.8%.
How does OMC compare to other Services stocks?
Vs Services sector averages: Net margin 6.5% (avg: 10%), ROE 4.3% (avg: 16%), current ratio 0.91 (avg: 1.5).