Morningstar Rating
Stock XPAR Rating as of
€98.60 −1.50(1.50%)
View Full ChartAs of Delayed Price Closed
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Company Report
Company Report
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.
Price vs Fair Value
Price vs Fair Value
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 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
News
- 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
Trading Information
- Previous Close Price
- €100.15
- Day Range
€97.46–100.55
- 52-Week Range
€68.86–108.40
- Bid/Ask
- €97.60/€100.00
- Market Cap
- €24.60 Bil
- Volume/Avg
- 574,220/434,693
Key Statistics
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
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
- Website
- https://www.publicisgroupe.com
Competitors
Competitors
- Omnicom Group Inc OMC
- The Interpublic Group of Companies Inc IPG
Valuation
Valuation
Metric | PUB | OMC | IPG |
---|---|---|---|
Price/Earnings (Normalized) | 13.01 | 11.85 | 9.95 |
Price/Book Value | 2.52 | 4.89 | 2.93 |
Price/Sales | 1.63 | 1.20 | 1.05 |
Price/Cash Flow | 12.77 | 9.53 | 7.95 |
Price/Earnings
PUB
OMC
IPG
Financial Strength
Financial Strength
Metric | PUB | OMC | IPG |
---|---|---|---|
Quick Ratio | 0.93 | 0.75 | 0.99 |
Current Ratio | 0.94 | 0.93 | 1.06 |
Interest Coverage | 8.70 | 9.99 | 6.04 |
Quick Ratio
PUB
OMC
IPG
Profitability
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
Advertising Agencies Industry Comparables
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 | Xnvlzkzrh | Qjvsspg | $17.8 Bil | |||
The Interpublic Group of Companies Inc IPG | Xckrwjbpg | Pmsqx | $11.2 Bil | |||
WPP PLC WPPGF | — | Llmyz | $10.4 Bil | |||
WPP PLC ADR WPP | Jwnjfvl | Jzfgd | $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 |