Publicis Groupe SA (PUB) (2024)

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€98.60 −1.50(1.50%)

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Company Report

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Publicis Groupe SA (PUB) (1)

Publicis Earnings: Strong Revenue Growth Leads to Improved Outlook; Increasing Fair Value Estimate

Eric Compton

Narrow-moat-rated Publicis delivered another solid quarter. While revenue growth met FactSet consensus expectations, the outlook was improved. As we predicted last quarter, with another strong quarter of a growth in the books, a raise to the full-year outlook was likely to happen. Management had guided to organic revenue growth of 4%-5% for the year and raised that outlook to 5%-6% organic growth after seeing growth of 5.6% in the current quarter. Management maintained its full-year outlook for an 18% operating margin. We were already expecting results to trend toward the higher end of the previous guidance range, but after current results we are slightly raising our growth outlook. We now forecast 5.8% annual organic growth, up from 4.8%, and we are raising our fair value estimate to EUR 104 from EUR 100. Shares were trading at our fair value heading into earnings, and we continue to view shares as fairly valued after our update. Interestingly, management left the door open for growth to accelerate further in the second half of 2024. We would read this as an expectation that growth will trend toward the higher end of the 5% to 6% range.

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PUB is trading at a 537% premium.

Price

€98.60

Fair Value

€111.00

Uncertainty

High

1-Star Price
€134.60

5-Star Price
€76.40

Economic Moat
Gmmzwv

Capital Allocation
Xcwryyn

Bulls Say, Bears Say

Bulls

Publicis operates more efficiently than its peers, as demonstrated by higher operating margins through economic booms and busts.

Bears

New forms of advertising continue to emerge and evolve. Any misstep by Publicis could allow its peers to gain share at its expense.

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News

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  • Publicis Groupe : First Half 2024 Results
  • Publicis cuts the BS from AI at the Cannes Lions Festival
  • Nannette LaFond-Dufour joins Publicis Groupe as Chief Impact Officer
  • WPP gets double-downgrade to sell at UBS over tech exposure
  • European Advertising Companies See Slowdown Ahead — At a Glance

Trading Information

Previous Close Price
€100.15
Day Range

€97.46100.55

52-Week Range

€68.86108.40

Bid/Ask
€97.60/€100.00

Market Cap
€24.60 Bil

Volume/Avg
574,220/434,693

Key Statistics

Price/Earnings (Normalized)
13.01

Price/Sales
1.63

Dividend Yield (Trailing)
3.45%

Dividend Yield (Forward)
3.45%

Total Yield
3.91%

Company Profile

Headquartered in France, Publicis is the world’s second-largest ad holding company based on revenue. Publicis’ services, which include traditional and digital advertising, public relations, and consulting, are provided worldwide, with over 80% of its revenue coming from more-developed regions such as North America and Europe.

Sector
Communication Services

Industry
Advertising Agencies

Stock Style Box
Large Core

Total Number of Employees
103,000

Competitors

  • Omnicom Group Inc OMC
  • The Interpublic Group of Companies Inc IPG

Valuation

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Metric

PUB

OMC

IPG

Price/Earnings (Normalized)

13.0111.859.95

Price/Book Value

2.524.892.93

Price/Sales

1.631.201.05

Price/Cash Flow

12.779.537.95

Price/Earnings

PUB

OMC

IPG

Financial Strength

Metric

PUB

OMC

IPG

Quick Ratio

0.930.750.99

Current Ratio

0.940.931.06

Interest Coverage

8.709.996.04

Quick Ratio

PUB

OMC

IPG

Profitability

Metric

PUB

OMC

IPG

Return on Assets (Normalized)

4.99%6.01%6.45%

Return on Equity (Normalized)

18.53%46.40%30.16%

Return on Invested Capital (Normalized)

11.43%15.24%14.06%

Return on Assets

PUB

OMC

IPG

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Advertising Agencies Industry Comparables

Screen With Investor

1-Day Chart

Name

Price

Morningstar Rating for Stocks

Capital Allocation

Economic Moat

Market Cap

Publicis Groupe SA ADR

PUBGY

Hmlsbl$27.0 Bil
Publicis Groupe SA

PGPEF

Lhvkgd$27.0 Bil
Omnicom Group Inc

OMC

XnvlzkzrhQjvsspg$17.8 Bil
The Interpublic Group of Companies Inc

IPG

XckrwjbpgPmsqx$11.2 Bil
WPP PLC

WPPGF

Llmyz$10.4 Bil
WPP PLC ADR

WPP

JwnjfvlJzfgd$10.4 Bil
Dentsu Group Inc

DNTUF

Ghk$6.7 Bil
Dentsu Group Inc ADR

DNTUY

Jwdm$6.7 Bil
JCDecaux SE

JCDXF

Pqwv$4.7 Bil
CyberAgent Inc

CYAGF

Cnnqwjs$3.1 Bil

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Publicis Groupe SA (PUB) (2024)

FAQs

How much does Publicis Group pay? ›

The average Publicis Groupe salary ranges from approximately £23,958 per year for Operations Administrator to £127,314 per year for Managing Director. Salary information comes from 338 data points collected directly from employees, users, and past and present job advertisem*nts on Indeed in the past 36 months.

Is Publicis Group a good company to work for? ›

Publicis Groupe has an overall rating of 3.8 out of 5, based on over 5,089 reviews left anonymously by employees. 76% of employees would recommend working at Publicis Groupe to a friend and 67% have a positive outlook for the business. This rating has decreased by 4% over the last 12 months.

Who are Publicis' biggest clients? ›

With over 16,000 employees in 110 countries, clients include AXA, Carrefour, Cartier, Citi, Diesel, Heineken, L'Oréal, Nestlé, Orange, Procter & Gamble, Renault, Sanofi, UBS and Walmart. In 2021, Publicis Worldwide was ranked by Cannes Lions as the 4th most creative network.

Does Publicis Groupe give bonuses? ›

Second year in a row of 10% revenue growth. Publicis Groupe is to pay “record-high” annual bonuses of close to €500 million ($549 million) to staff after ending 2022 strongly, with better than expected revenue, up 10%, and profit up 23%.

How much does a vice president at Publicis make? ›

Average Publicis Groupe Vice President yearly pay in the United States is approximately $161,761, which is 9% above the national average.

What is the salary of SEO Analyst in Publicis Groupe? ›

How much does an Analyst make at Publicis Groupe in India? Average Publicis Groupe Analyst yearly pay in India is approximately ₹ 5,39,438, which meets the national average.

Is Publicis a prestigious company? ›

Contributor. In 2023, the French group Publicis cemented its status as most valuable agency holding company in the world.

How does Publicis make money? ›

Publicis Groupe SA engages in the advertising industry. Its services include customer relationship management, direct marketing, sales promotion, events management, public relations, and corporate, multicultural and financial communications.

How much do Publicis executives make? ›

The estimated total pay range for a Programmatic Executive at Publicis Groupe is £23K–£28K per year, which includes base salary and additional pay. The average Programmatic Executive base salary at Publicis Groupe is £26K per year.

What is the controversy with Publicis? ›

"Publicis was responsible for creating advertisem*nts and materials, such as pamphlets and brochures, that promoted OxyContin as safe and unable to be abused, even though this claim was not true." the New York attorney general's office stated, accusing the advertising agency of "conspiring" with consulting firm ...

Why is Publicis so successful? ›

“More generally, Publicis' outperformance v its peers is attributable to the mix of activities, new business wins (in particular in media) in the last years, the synergy between media and Epsilon around first-party data specialization, and the group's organization (its collaborative platform Marcel, [and its] nearshore ...

Who is the CEO of Publicis? ›

What is the promotion cycle of Publicis? ›

Publicis Sapient is ahead of the curve with dynamic approach to performance appraisals . It has upgraded its twice-a-year promotion cycle to monthly promotions. Employees are eligible for an elevation each month provided there is financial justification, a capability expectation, and a role available.

What is it like to work at Publicis Groupe? ›

Our Groupe is home to the most tech-savvy, creative, passionate, value-creating people in the industry. We provide them with an environment based on accountability, merit and trust that enables the brightest, most creative, highly dedicated people to do best work of their lives.

Why join Publicis Groupe? ›

We remain faithful to our “Viva La Difference” motto, we are a diverse and inclusive workplace. We assess candidates on passion and talent, rather than formal qualifications. Whether you come from prestigious universities or from the school of life, you're welcome: Publicis values ALL profiles and individualities.

What is the salary of senior associate in Publicis Collective? ›

The average Senior Associate base salary at Publicis Groupe is $83K per year.

How much do media interns make at Publicis? ›

The average Publicis Groupe hourly pay ranges from approximately $19 per hour (estimate) for a Media Intern to $116 per hour (estimate) for a SVP Brand Strategy.

How many employees does Publicis Group have? ›

Global headcount of Publicis Groupe 2022, by region

In 2022, French advertising behemoth Publicis Groupe employed 98,022 people worldwide, of which 32,195 were allocated in the Asia Pacific region. North America had 29,574 Publicis Groupe employees, while Europe followed with 24,304.

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