Omnicom Group Inc. It‘s complicated

研报英文原文证据摘录

Omnicom Group Inc. It‘s complicated

Equity Research

European Media

30 July 2026

Omnicom Group Inc.

It's complicated

2Q26A results were a mixed bag (organic better but margin

miss) and rest of year comes with question marks (working

capital, EPS growth). Stock is inexpensive but it comes with OMC EQUAL WEIGHT Unchanged

uncertainties on medium-term margins and industry growth. European Media NEUTRAL

Unchanged

Omnicom 2Q26A results were mixed with organic better (6.1% vs. Bloomberg consensus at Price Target USD 90.00

3.7%) but adj. EBITA margin worse (17.2% vs. 17.8%) while adj. EPS was in line (US$2.65 Unchanged

vs. consensus at US$2.63). The margin miss comes from either operating costs growing Price (29-Jul-26) USD 82.58

faster than revenues (they should not) or Omnicom only delivering 57% of the planned Potential Upside/Downside +9.0%

synergies vs. re-iterated 75-80% guidance (explanations inside). Organic benefited from Source: Bloomberg, Barclays Research

1% World Cup contribution in Experiential and we estimate the growth gap between gross

and net organic at c. 4%. Dispositions have also increased from US$3.2bn of revenues to Market Cap (USD mn) 22655

US$3.4-3.5bn resulting in 1% extra dilution. We calculate that these assets were sold for 2x Shares Outstanding (mn) 274.35

EV/EBITA so portfolio pruning to boost organic comes at a cost. Finally, there is a gap Free Float (%) 99.01

between CFO guidance of high teens EPS growth (we interpret this as c. 20%) on last year 52 Wk Avg Daily Volume (mn) 4.4

adj. EPS of US$8.65 ie US$10.38 and Barclays / consensus. We are 9% higher (US$11.34) Dividend Yield (%) 3.88

and consensus is 4% higher (US$10.76). Finally, we also face some uncertainties on the Return on Equity TTM (%) 0.90

amount of reinvestment vs. gross synergies.