Interpublic Group of Companies Inc
NYSE:IPG
Intrinsic Value
Interpublic Group of Cos., Inc. engages in the provision of advertising and marketing services. [ Read More ]
The intrinsic value of one
IPG
stock under the Base Case scenario is
38.92
USD.
Compared to the current market price of 30.39 USD,
Interpublic Group of Companies Inc
is
Undervalued by 22%.
IPG could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Interpublic Group of Companies Inc's market capitalization is 11.5B USD.
IPG stock price is 30.39 USD.
IPG stock price (30.39 USD) is 22% less than its Intrinsic Value (38.92 USD).
IPG stock price (30.39 USD) is 21% less than its Relative Value (38.25 USD). Open Relative Valuation
IPG has upside potential of 19% compared to the average analyst price target.
Open Wall St Estimates
IPG's Revenue has dropped by 0% over the past 12 months.
IPG's short-term assets (11B USD) exceed its short-term liabilties (10B USD).
IPG's ROIC (Return on Invested Capital) has increased in the last 3 years from 13% to 14%.
IPG's Revenue is forecast to fall at a rate of 1% per year over the next 3 years.
IPG has positive Operating Income for the last twelve months.
IPG has positive Net Income for the last twelve months.
IPG's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 14%.
IPG has positive three-year average ROIC (Return on Invested Capital): 13%. The company is efficient at using invested capital to generate operating income.
IPG's Revenue has been growing by 6% per year for the last 3 years.
IPG has positive Gross Profit for the last twelve months.
IPG's long-term assets (19B USD) exceed its long-term liabilties (15B USD).
IPG has positive Net Debt. This means that the company has more debt (3B USD) than cash and short-term investments (2B USD).
IPG's ROE (Return on Equity) has significantly increased in the last 3 years from 16% to 29%.
IPG's ROE (Return on Equity) for the past 12 months is very high and is equal to 29%.
IPG's D/E (Debt to Equity) is very low and is equal to 0.75.
IPG has positive Free Cash Flow for the last twelve months.
IPG has very high three-year average ROE (Return on Equity): 26%. The company is very efficient at transforming stockholders' equity into net income.
IPG's Altman Z-Score is very low and is equal to 1.5.
IPG generates enough operating income (1B USD) to cover interest payments on its debt (222m USD).
Valuation Backtest
Interpublic Group of Companies Inc
Run backtest to discover the historical profit from buying and selling
IPG
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Interpublic Group of Companies Inc
Balance Sheet Decomposition
Interpublic Group of Companies Inc
| Current Assets | 11B |
| Cash & Short-Term Investments | 2.4B |
| Receivables | 8B |
| Other Current Assets | 566.3m |
| Non-Current Assets | 8.3B |
| PP&E | 1.8B |
| Intangibles | 5.8B |
| Other Non-Current Assets | 693.1m |
| Current Liabilities | 10.3B |
| Accounts Payable | 8.4B |
| Accrued Liabilities | 901m |
| Short-Term Debt | 34.2m |
| Other Current Liabilities | 1B |
| Non-Current Liabilities | 5B |
| Long-Term Debt | 2.9B |
| Other Non-Current Liabilities | 2.1B |
Earnings Waterfall
Interpublic Group of Companies Inc
|
Revenue
|
10.9B
USD
|
|
Cost of Revenue
|
-9.1B
USD
|
|
Gross Profit
|
1.8B
USD
|
|
Operating Expenses
|
-331.5m
USD
|
|
Operating Income
|
1.5B
USD
|
|
Other Expenses
|
-384.3m
USD
|
|
Net Income
|
1.1B
USD
|
Free Cash Flow Analysis
Interpublic Group of Companies Inc
What is Free Cash Flow?
IPG Profitability Score
Profitability Due Diligence
Interpublic Group of Companies Inc's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
Score
Interpublic Group of Companies Inc's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
IPG Solvency Score
Solvency Due Diligence
Interpublic Group of Companies Inc's solvency score is 45/100. The higher the solvency score, the more solvent the company is.
Score
Interpublic Group of Companies Inc's solvency score is 45/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
IPG Price Targets Summary
Interpublic Group of Companies Inc
According to Wall Street analysts, the average 1-year price target for
IPG
is 36.03 USD
with a low forecast of 31.31 USD and a high forecast of 42 USD.
Ownership
IPG Insider Trading
Buy and sell transactions by insiders
| Period | Sold | Bought | Net |
|---|---|---|---|
| 3 Months |
|
|
|
| 6 Months |
|
|
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| 9 Months |
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| 12 Months |
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Shareholder Return
IPG Price
Interpublic Group of Companies Inc
| Average Annual Return | 18.29% |
| Standard Deviation of Annual Returns | 33.92% |
| Max Drawdown | -49% |
| Market Capitalization | 11.5B USD |
| Shares Outstanding | 378 730 000 |
| Percentage of Shares Shorted | 6.12% |
Company Profile
Interpublic Group of Companies Inc
Country
Industry
Market Cap
Dividend Yield
Description
Interpublic Group of Cos., Inc. engages in the provision of advertising and marketing services. The company is headquartered in New York City, New York and currently employs 55,600 full-time employees. The firm is engaged in consumer advertising, digital marketing, communications planning and media buying, public relations, specialized communications disciplines and data management. The firm operates through two segments: Integrated Agency Networks (IAN) and IPG DXTRA (DXTRA). The IAN segment includes the Company's agencies that provides an array of global communications and marketing services, each offering a range of solutions for its clients. Its digital specialist agencies, including R/GA and Huge, provides digital capabilities and serves as key digital partners. The DXTRA segment includes Weber Shandwick, DeVries, Golin, FutureBrand, Jack Morton and Octagon Worldwide, which provides clients with diversified services, including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting.
Contact
IPO
Employees
Officers
The intrinsic value of one
IPG
stock under the Base Case scenario is
38.92
USD.
Compared to the current market price of 30.39 USD,
Interpublic Group of Companies Inc
is
Undervalued by 22%.
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