Publicis Groupe (PUB) AI Stock Analysis

• Market Cap: €21.59B
• Dividend Yield: 4.13%
• Average Volume (3M): 542.37K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.92
• Revenue Growth: 9.88%
• EPS Growth: 16.84%
• Country: FR
• Employees: 107,273
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 3.51
• Shares Outstanding: 254,311,860
• 10 Day Avg. Volume: 556,538
• 30 Day Avg. Volume: 542,367
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €98.88
• Price Target Upside: 13.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: €91.00 ▲(4.31% Upside)

Publicis Groupe's strong financial performance is the primary driver of its overall score, supported by robust revenue growth and profitability. The stock's valuation is attractive with a low P/E ratio and high dividend yield. However, technical indicators suggest a cautious outlook with weak momentum. The absence of earnings call data and corporate events limits further insights.

Publicis Groupe Business Overview & Revenue Model

Company Description

Publicis Groupe is a leading global communications and marketing organization headquartered in Paris, France. It operates through various segments, including Advertising, Digital Marketing, Media, and Public Relations. The company offers a wide range of services such as creative advertising, media planning and buying, digital transformation, and data analytics. With a strong emphasis on technology and innovation, Publicis Groupe aims to deliver integrated solutions that enhance brand performance and customer engagement across diverse industries worldwide.

How the Company Makes Money

Publicis Groupe generates revenue primarily through its services in advertising, media, and digital marketing. The company's revenue model includes fees for creative and media services, performance-based compensation, and project-based engagements. Key revenue streams come from long-term contracts with large multinational clients, which often involve multi-channel campaigns that integrate traditional and digital media. Additionally, Publicis Groupe leverages data analytics and technology solutions to provide insights and targeted advertising, enhancing the effectiveness of marketing strategies for its clients. Strategic partnerships with tech companies and platforms also contribute to its revenue, enabling Publicis to offer advanced digital capabilities and expand its service offerings.

Publicis Groupe Financial Statement Overview

Summary

Publicis Groupe demonstrates strong financial health with robust revenue growth, high profitability, and efficient cash flow management. The company shows effective cost management and operational efficiency, though there is room for improvement in equity utilization.

Income Statement

Publicis Groupe has demonstrated strong revenue growth with a 8.3% increase from 2023 to 2024. Gross profit margin is exceptionally high at 100%, indicating effective cost management. The net profit margin has improved to 10.4%, reflecting enhanced profitability. EBIT and EBITDA margins are also robust, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.47, indicating moderate leverage. Return on equity is strong at 15.0%, showcasing effective use of shareholder funds. The equity ratio is 27.8%, which is stable, though there's room for improvement in equity utilization.

Cash Flow

Publicis Groupe exhibits a solid free cash flow growth rate of 10.4% from 2023 to 2024, reflecting strong cash-generating capabilities. The operating cash flow to net income ratio is 1.39, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio is 1.24, demonstrating efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.86B	16.03B	14.80B	14.20B	11.74B	10.79B
Gross Profit	2.54B	6.94B	6.40B	2.06B	1.64B	1.39B
EBITDA	3.22B	3.15B	2.68B	2.88B	2.12B	1.94B
Net Income	1.71B	1.66B	1.31B	1.22B	1.03B	576.00M
Balance Sheet
Total Assets	36.08B	39.85B	36.72B	35.90B	32.85B	30.16B
Cash, Cash Equivalents and Short-Term Investments	2.21B	3.82B	4.25B	4.62B	3.66B	3.70B
Total Debt	5.46B	5.17B	5.54B	6.17B	5.72B	6.65B
Total Liabilities	26.48B	28.82B	26.97B	26.30B	24.29B	23.00B
Stockholders Equity	9.63B	11.06B	9.79B	9.63B	8.59B	7.18B
Cash Flow
Free Cash Flow	2.11B	2.06B	1.87B	2.20B	1.57B	2.69B
Operating Cash Flow	2.34B	2.30B	2.05B	2.40B	1.71B	2.85B
Investing Cash Flow	-1.36B	-1.12B	-348.00M	-752.00M	-419.00M	-319.00M
Financing Cash Flow	-1.60B	-2.01B	-1.75B	-980.00M	-1.58B	-1.86B

Publicis Groupe Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:PUB, the sentiment is Positive. The current price of 87.24 is above the 20-day moving average (MA) of 83.26, above the 50-day MA of 81.61, and below the 200-day MA of 87.73, indicating a neutral trend. The MACD of 1.47 indicates Negative momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 87.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:PUB.

Publicis Groupe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HCO	79 Outperform	€75.67M	14.20	4.71%	6.05%	-21.70%	-49.75%
ALBLD	76 Outperform	€94.98M	18.77	―	―	21.20%	13.12%
PUB	73 Outperform	€21.59B	12.62	17.51%	4.13%	9.88%	16.84%
DEC	72 Outperform	€3.25B	13.53	11.69%	3.62%	5.80%	-9.84%
ALREW	71 Outperform	€96.41M	3.90	12.60%	1.12%	-3.53%	28.87%
ALHOP	61 Neutral	€39.69M	10.91	―	5.00%	11.03%	-37.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%