Omnicom (Germany) Buy Hold or Sell Recommendation

OCN Stock  EUR 82.66  1.14  1.36%   
Assuming the 90 days horizon and your typical level of risk aversion, our recommendation regarding Omnicom Group is 'Hold'. Macroaxis provides Omnicom buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Omnicom positions.
  
Check out Omnicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Omnicom and provide practical buy, sell, or hold advice based on investors' constraints. Omnicom Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Omnicom Buy or Sell Advice

The Omnicom recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Omnicom Group. Macroaxis does not own or have any residual interests in Omnicom Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Omnicom's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell OmnicomBuy Omnicom
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Omnicom Group has a Risk Adjusted Performance of (0.04), Jensen Alpha of (0.13), Total Risk Alpha of (0.16) and Treynor Ratio of (0.12)
Macroaxis provides advice on Omnicom Group to complement and cross-verify current analyst consensus on Omnicom Group. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Omnicom is not overpriced, please check all Omnicom Group fundamentals, including its price to earning, gross profit, cash per share, as well as the relationship between the price to sales and net income .

Omnicom Trading Alerts and Improvement Suggestions

Omnicom Group generated a negative expected return over the last 90 days
Omnicom Group has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
Omnicom Group has accumulated 5.58 B in total debt with debt to equity ratio (D/E) of 146.1, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Omnicom Group has a current ratio of 0.89, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Omnicom until it has trouble settling it off, either with new capital or with free cash flow. So, Omnicom's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Omnicom Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Omnicom to invest in growth at high rates of return. When we think about Omnicom's use of debt, we should always consider it together with cash and equity.
Over 96.0% of Omnicom shares are owned by institutional investors

Omnicom Returns Distribution Density

The distribution of Omnicom's historical returns is an attempt to chart the uncertainty of Omnicom's future price movements. The chart of the probability distribution of Omnicom daily returns describes the distribution of returns around its average expected value. We use Omnicom Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Omnicom returns is essential to provide solid investment advice for Omnicom.
Mean Return
-0.1
Value At Risk
-3
Potential Upside
2.48
Standard Deviation
1.80
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Omnicom historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Omnicom Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Omnicom or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Omnicom's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Omnicom stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.13
β
Beta against Dow Jones0.89
σ
Overall volatility
1.83
Ir
Information ratio -0.07

Omnicom Volatility Alert

Omnicom Group exhibits very low volatility with skewness of -0.17 and kurtosis of 3.78. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Omnicom's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Omnicom's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Omnicom Fundamentals Vs Peers

Comparing Omnicom's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Omnicom's direct or indirect competition across all of the common fundamentals between Omnicom and the related equities. This way, we can detect undervalued stocks with similar characteristics as Omnicom or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Omnicom's fundamental indicators could also be used in its relative valuation, which is a method of valuing Omnicom by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Omnicom to competition
FundamentalsOmnicomPeer Average
Return On Equity0.34-0.31
Return On Asset0.0487-0.14
Profit Margin0.09 %(1.27) %
Operating Margin0.15 %(5.51) %
Current Valuation18.58 B16.62 B
Shares Outstanding202.71 M571.82 M
Shares Owned By Insiders1.37 %10.09 %
Shares Owned By Institutions96.02 %39.21 %
Price To Earning12.69 X28.72 X
Price To Book5.97 X9.51 X
Price To Sales1.08 X11.42 X
Revenue14.29 B9.43 B
Gross Profit2.76 B27.38 B
EBITDA2.37 B3.9 B
Net Income1.3 B570.98 M
Cash And Equivalents2.57 B2.7 B
Cash Per Share11.31 X5.01 X
Total Debt5.58 B5.32 B
Debt To Equity146.10 %48.70 %
Current Ratio0.91 X2.16 X
Book Value Per Share16.04 X1.93 K
Cash Flow From Operations926.5 M971.22 M
Earnings Per Share6.00 X3.12 X
Price To Earnings To Growth5.61 X4.89 X
Target Price83.17
Number Of Employees74.2 K18.84 K
Beta0.86-0.15
Market Capitalization17.23 B19.03 B
Total Asset27 B29.47 B
Z Score1.88.72
Annual Yield0.03 %
Five Year Return2.54 %
Net Asset27 B

Omnicom Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Omnicom . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Omnicom Buy or Sell Advice

When is the right time to buy or sell Omnicom Group? Buying financial instruments such as Omnicom Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Additional Information and Resources on Investing in Omnicom Stock

When determining whether Omnicom Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Omnicom's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Omnicom Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Omnicom Group Stock:
Check out Omnicom Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Please note, there is a significant difference between Omnicom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Omnicom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Omnicom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.