November 16, 2023
Top 10 Stock Omnicom Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Omnicom Strong Buy

360 METRICS	November 16, 2023
VALUE
VALUE	94
GROWTH
GROWTH	65
SAFETY
SAFETY	61
SENTIMENT
SENTIMENT	56
360° VIEW
360° VIEW	93

ANALYSIS: With an Obermatt 360° View of 93 (better than 93% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Omnicom are very positive. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Omnicom. The consolidated Value Rank has an attractive rank of 94, which means that the share price of Omnicom is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 94% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 65, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The company is also safely financed with a Safety rank of 61. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 56. ...read more

RECOMMENDATION: With a consolidated 360° View of 93, Omnicom is better positioned than 93% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 94), above-average growth (Growth Rank of 65), safe financing practices (Safety Rank of 61), and a positive market sentiment in the professional investor community (Sentiment Rank of 56), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Omnicom is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Omnicom positive

SENTIMENT METRICS	November 16, 2023
ANALYST OPINION
ANALYST OPINION	22
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	77
MARKET PULSE
MARKET PULSE	59
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	56

ANALYSIS: With an Obermatt Sentiment Rank of 56 (better than 56% compared with alternatives), overall professional sentiment and engagement for the stock Omnicom is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Omnicom. Analyst Opinions are at a rank of 22 (worse than 78% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Omnicom. Even better, the Professional Investors rank is 77, meaning that professional investors hold more stock in this company than in 77% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 59, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 59% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 56 (more positive than 56% compared with investment alternatives), Omnicom has a reputation among professional investors that is above-average compared with that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Omnicom Stock Price Value at the top

VALUE METRICS	November 16, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	64
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	81
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	46
DIVIDEND YIELD
DIVIDEND YIELD	94
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	94

ANALYSIS: With an Obermatt Value Rank of 94 (better than 94% compared with alternatives) for 2023, Omnicom shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Omnicom. Price-to-Sales (P/S) is 64, which means that the stock price compared with what market professionals expect for future sales is lower than for 64% of comparable companies, indicating a good value concerning Omnicom's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 81% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 94 (dividends are expected to be higher than 94% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 54% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Omnicom to 46. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 94, is a buy recommendation based on Omnicom's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. ...read more

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Growth Strategy: Omnicom Growth Momentum good

GROWTH METRICS	November 16, 2023
REVENUE GROWTH
REVENUE GROWTH	39
PROFIT GROWTH
PROFIT GROWTH	47
CAPITAL GROWTH
CAPITAL GROWTH	74
STOCK RETURNS
STOCK RETURNS	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	65

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Omnicom shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Omnicom. Capital Growth has a rank of 74, which means that currently professionals expect the company to grow its invested capital more than 47% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 59 (above 59% of alternative investments). But Sales Growth has only a rank of 39, which means that, currently, professionals expect the company to grow less than 61% of its competitors, and Profit Growth is also low at a rank of 47. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for Omnicom, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. ...read more

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Safety Strategy: Omnicom Debt Financing Safety above-average

SAFETY METRICS	November 16, 2023
LEVERAGE
LEVERAGE	32
REFINANCING
REFINANCING	31
LIQUIDITY
LIQUIDITY	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	61

ANALYSIS: With an Obermatt Safety Rank of 61 (better than 61% compared with alternatives), the company Omnicom has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Omnicom is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Omnicom. Liquidity is at 83, meaning the company generates more profit to service its debt than 83% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 31, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 69% of its competitors. Leverage is also high at a rank of 32, which means that the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 61 (better than 61% compared with alternatives), Omnicom has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more

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Combined financial peformance: Omnicom Top Financial Performance

COMBINED PERFORMANCE	November 16, 2023
VALUE
VALUE	94
GROWTH
GROWTH	65
SAFETY
SAFETY	83
COMBINED
COMBINED	93

ANALYSIS: With an Obermatt Combined Rank of 93 (better than 93% compared with investment alternatives), Omnicom (Advertising, USA) shares have much better financial characteristics than comparable stocks. Shares of Omnicom are a good value (attractively priced) with a consolidated Value Rank of 94 (better than 94% of alternatives), show above-average growth (Growth Rank of 65), and are safely financed (Safety Rank of 61), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 93, is a strong buy recommendation based on Omnicom's financial characteristics. As the company Omnicom's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 94), above-average growth (Obermatt Growth Rank of 65), and indicate that the company is safely financed (Obermatt Safety Rank of 61), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Omnicom. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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