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Is this Large Market Cap Stock target price reasonable for Omnicom Group Inc. (NYSE:OMC)?

The company in question is, Omnicom Group Inc. (NYSE:OMC) currently with a stock price of 86.37 (-0.38% today). The market cap for Omnicom Group Inc. is 20323.73, and is in the sector Services, and Advertising Agencies industry. The target price for Omnicom Group Inc. is 82.36. Currently Omnicom Group Inc. is trading with a P/E of 18.68, and a forward P/E of 16.91. Average volume for Omnicom Group Inc. is 1467.6 and so far today it is 1024800.

Performance in the last year for Omnicom Group Inc. has been 34.35%. For EPS growth, Omnicom Group Inc. has seen a growth of 3.20%, and is looking to grow in the next year to 7.42%. More long term stats show that EPS growth has been 10.60% over the last five years and could be 6.25% for the next five years. Omnicom Group Inc. has seen sales growth quarter over quarter at 2.10%, with EPS growth quarter over quarter at 7.50%. The 20-day simple moving average is 3.98%, with the 200-day simple moving average coming to 9.34%.

Since the IPO date for Omnicom Group Inc. on the 3/26/1990, Omnicom Group Inc. has seen performance year to date to be 15.63%. With Omnicom Group Inc. trading at 86.37, the dividend yield is 2.55%, and the EPS is 4.62.

So could Omnicom Group Inc., be undervalued? Well as said before P/E is 18.68. The PEG is 2.99, P/S is 1.33 and the P/B is at 9. The P/cash is 13.23, with P/free cash flow at 17.37.

Omnicom Group Inc. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.8. This is with long term debt/equity at 2.2, and total debt/equity at 2.21.

In terms of margins, Omnicom Group Inc. has a gross margin of 25.20%, an operating margin of 12.80% and a profit margin of 7.30%.Payout ratio for Omnicom Group Inc. is 44.10%. Return on assets come to 5.30% with return on investment coming to 19.00%.

Insider ownership for Omnicom Group Inc., is at 0.70% and institutional ownership comes to 99.20%. Outstanding shares are at 235.31. While shares float is 234.81. The float short is currently 7.75%, and short ratio is 12.4.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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