The Interpublic Group of Companies Inc IPG

Morningstar Rating
$31.07 −0.15 (0.48%)
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Company Report

Interpublic Has the Scale and Expertise to Maintain Its Position in the Ad Industry

Interpublic Group is one of the global Big Five advertising holding companies along with Dentsu, Omnicom, Publicis, and WPP. The firm has maintained its market position as it continues to make acquisitions and increases its focus on faster-growing emerging markets and the overall digital ad market. Cost controls have produced consistent operating margin expansion over the past five years, which we expect to continue.

Price vs Fair Value

IPG is trading at a 157% premium.
Price
$31.07
Fair Value
$41.00
Uncertainty
High
1-Star Price
$27.58
5-Star Price
$39.90
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Although the environment is evolving, there will always be a market for creating and delivering compelling advertising to consumers around the globe.

Bears

Because most of its profits come from mature markets like the U.S. and Europe, IPG's organic revenue growth could lag its peers.

News

Trading Information

Previous Close Price
$31.22
Day Range
$31.0031.50
52-Week Range
$27.2035.17
Bid/Ask
$30.78 / $31.35
Market Cap
$11.67 Bil
Volume/Avg
3.6 Mil / 3.9 Mil

Key Statistics

Price/Earnings (Normalized)
10.90
Price/Sales
1.09
Dividend Yield (Trailing)
4.18%
Dividend Yield (Forward)
4.25%
Total Yield
7.20%

Company Profile

Interpublic Group is among the world’s largest advertising holding companies based on annual revenue. It provides traditional advertising services along with digital and other services such as public relations through various acquisitions. IPG has made these services available in over 100 countries. The company generates about 65% of revenue in the US and 17% in the UK and Europe.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Mid Value
Total Number of Employees
56,800

Competitors

Valuation

Metric
IPG
PUB
OMC
Price/Earnings (Normalized)
10.9012.4313.29
Price/Book Value
3.062.465.48
Price/Sales
1.091.611.35
Price/Cash Flow
8.5912.6110.68
Price/Earnings
IPG
PUB
OMC

Financial Strength

Metric
IPG
PUB
OMC
Quick Ratio
0.990.870.75
Current Ratio
1.060.890.93
Interest Coverage
6.229.539.99
Quick Ratio
IPG
PUB
OMC

Profitability

Metric
IPG
PUB
OMC
Return on Assets (Normalized)
6.15%5.11%6.01%
Return on Equity (Normalized)
28.44%18.80%46.40%
Return on Invested Capital (Normalized)
13.35%11.87%15.24%
Return on Assets
IPG
PUB
OMC

Advertising Agencies Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Publicis Groupe SA
PGPEF
Xdpkvq$27.1 Bil
Publicis Groupe SA ADR
PUBGY
Vcrhxwg$27.1 Bil
Omnicom Group Inc
OMC
YvszmftzhZbmkdf$20.0 Bil
WPP PLC
WPPGF
Jjryq$11.3 Bil
WPP PLC ADR
WPP
XtvgqntbPsytxnx$11.3 Bil
Dentsu Group Inc ADR
DNTUY
Rlr$7.8 Bil
Dentsu Group Inc
DNTUF
Vlwv$7.8 Bil
JCDecaux SE
JCDXF
Zwvd$4.7 Bil
Stroeer SE & Co KGaA
SOTDF
Sghgns$3.5 Bil

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