OMCOmnicom Group
Is the business good?
The checks split: earnings fully cash-backed (3.1×), but 3 of 9 health tests passed and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is OMC?
Omnicom Group earns 7.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.4 points below what the capital costs: growth destroys value
- Operating margin
- 6.4%
Operating margin · Advertising Agencies median 5.9% · 12 months to Q3 2026
- Cash conversion
- 3.07×
Cash conversion · 1.20× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +41%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 15% |
| FY2022 | 15% |
| FY2023 | 14% |
| FY2024 | 14% |
| FY2025 | 2.6% |
Details›
- Gross margin12 months to Q3 2026
- 13%
- Operating margin12 months to Q3 2026
- 6.4%
- Net margin12 months to Q3 2026
- 2.9%
- Free cash flow margin
- 12%
- Revenue, trailing twelve months
- $24.8B
- Free cash flow, trailing twelve months
- $2.86B
- Net income, trailing twelve months
- $705M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from OMC and who it buys from, as the companies report it.
- Largest clients54%
Combined share of revenue · FY2025 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; OMC’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Advertising Agencies
The closest names by size in the same industry