Interpublic Group of Companies (IPG) AI Stock Analysis

• Market Cap: $9.63B
• Dividend Yield: 5.02%
• Average Volume (3M): 5.36M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.89
• Revenue Growth: -5.16%
• EPS Growth: -56.06%
• Country: US
• Employees: 51,500
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.75
• Shares Outstanding: 366,266,400
• 10 Day Avg. Volume: 5,950,370
• 30 Day Avg. Volume: 5,355,059
• PEG Ratio: -0.43
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 11.51
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 6.34
• Enterprise Value/Ebitda: 9.98
• 1Y Price Target: $28.93
• Price Target Upside: 10.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $28.00 ▲(6.46% Upside)

Interpublic Group's overall stock score reflects a mixed financial performance with declining revenue and profitability margins, balanced by improved leverage management. Technical indicators suggest potential stability, while valuation metrics indicate moderate overvaluation. The earnings call highlights strategic progress but also significant challenges from past account losses.

Positive Factors

Strategic Transformation

IPG's strategic transformation efforts, focusing on centralization and technology, enhance operational efficiency and long-term competitiveness.

Client Sector Growth

Growth in key client sectors indicates robust demand and potential for sustained revenue streams, supporting long-term business stability.

Adjusted EBITDA Margin

Strong adjusted EBITDA margin reflects effective cost management and operational efficiency, crucial for maintaining profitability.

Negative Factors

Organic Revenue Decline

Declining organic revenue suggests challenges in retaining clients and market share, potentially affecting long-term growth prospects.

Significant Headwinds from 2024 Losses

Past account losses continue to impact current performance, highlighting vulnerabilities in client retention and competitive positioning.

Restructuring Charges

High restructuring costs indicate ongoing adjustments and potential disruptions, which may affect short-term financial stability.

Interpublic Group of Companies Business Overview & Revenue Model

Company Description

The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in two segments, Integrated Agency Networks (IAN) and IPG DXTRA. The company offers consumer advertising, digital marketing, communications planning and media buying, public relations, and specialized communications disciplines, as well as data science services. It also provides various diversified services, including meeting and event production, sports and entertainment marketing, corporate and brand identity, and strategic marketing consulting. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.

How the Company Makes Money

IPG generates revenue primarily through service fees charged to clients for the advertising and marketing services provided by its subsidiary agencies. The company typically earns money through traditional media buying, digital advertising, and integrated marketing solutions. Key revenue streams include commissions from media buys, project-based fees for creative services, and retainer fees for ongoing marketing consultancy. Additionally, IPG benefits from performance-based incentives tied to the success of campaigns. The company has established significant partnerships with major corporations across various industries, which contributes to its earnings stability and growth potential. Furthermore, IPG's investments in data analytics and technology enhance service offerings, allowing for more effective campaign strategies that attract and retain clients.

Interpublic Group of Companies Financial Statement Overview

Summary

Interpublic Group's financial statements present a mixed picture. While the company has managed to maintain certain profitability metrics, declining revenue growth and profitability margins pose challenges. The balance sheet shows improved leverage management, but the cash flow statement highlights potential liquidity concerns. Overall, the company needs to address these issues to improve its financial health and investor confidence.

Income Statement

Interpublic Group's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate in the TTM period. Gross profit margin remains stable, but net profit margin has decreased, indicating pressure on profitability. The EBIT and EBITDA margins have also contracted, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio has improved slightly over the years, suggesting better leverage management. However, the return on equity has decreased in the TTM period, which could be a concern for investors. The equity ratio remains stable, indicating a balanced asset structure.

Cash Flow

The cash flow statement reveals some challenges. Free cash flow growth has been negative in the TTM period, and the operating cash flow to net income ratio is relatively low, indicating potential liquidity issues. However, the free cash flow to net income ratio remains healthy, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.35B	10.69B	10.89B	10.93B	10.24B	9.06B
Gross Profit	1.85B	1.82B	1.81B	1.84B	1.85B	1.35B
EBITDA	1.18B	1.54B	1.90B	1.71B	1.68B	844.10M
Net Income	441.70M	689.50M	1.10B	938.00M	952.80M	351.10M
Balance Sheet
Total Assets	17.03B	18.33B	19.27B	18.84B	19.91B	18.04B
Cash, Cash Equivalents and Short-Term Investments	1.56B	2.19B	2.39B	2.55B	3.27B	2.51B
Total Debt	4.18B	4.25B	4.67B	4.53B	4.80B	5.18B
Total Liabilities	13.24B	14.42B	15.22B	15.10B	16.30B	15.01B
Stockholders Equity	3.71B	3.80B	3.94B	3.65B	3.53B	2.90B
Cash Flow
Free Cash Flow	839.70M	913.40M	375.40M	430.70M	1.88B	1.68B
Operating Cash Flow	958.90M	1.06B	554.70M	608.80M	2.08B	1.85B
Investing Cash Flow	-140.20M	-151.10M	-85.40M	-430.10M	-185.30M	-216.20M
Financing Cash Flow	-812.80M	-1.02B	-634.30M	-899.40M	-1.08B	-346.20M

Interpublic Group of Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPG, the sentiment is Positive. The current price of 26.3 is below the 20-day moving average (MA) of 26.37, above the 50-day MA of 25.68, and above the 200-day MA of 25.50, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.83 is Neutral, neither overbought nor oversold. The STOCH value of 40.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPG.

Interpublic Group of Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	78 Outperform	14.93B	10.94	30.74%	3.63%	5.21%	-3.74%
CRTO	75 Outperform	1.30B	9.41	12.54%	―	-0.40%	36.44%
MGNI	71 Outperform	3.25B	81.15	5.61%	―	5.52%	―
WPP	68 Neutral	5.17B	10.53	15.60%	10.00%	-1.89%	90.72%
STGW	68 Neutral	1.40B	488.29	-0.22%	―	9.56%	―
IPG	66 Neutral	$9.63B	22.09	11.70%	5.02%	-5.16%	-56.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Interpublic Group of Companies Corporate Events

Interpublic Group Extends Note Exchange Offer Deadline

On September 9, 2025, The Interpublic Group of Companies, Inc. (IPG) and Omnicom Group Inc. announced an extension of the expiration date for Omnicom’s exchange offers for IPG’s existing senior notes. The expiration date has been moved from September 9, 2025, to September 30, 2025. This extension is part of the ongoing process related to Omnicom’s pending acquisition of IPG, which is expected to be completed within the year, subject to regulatory approvals. The exchange offers and consent solicitations are anticipated to result in reduced liquidity for the existing IPG notes not exchanged, and the proposed amendments to the existing IPG indenture will reduce protection for remaining holders of these notes.

IPG Amends Senior Notes Amid Omnicom Acquisition

On August 22, 2025, IPG entered into a Thirteenth Supplemental Indenture to amend existing senior notes, with consents solicited through exchange offers and consent solicitations managed by Omnicom Group Inc. The amendments aim to eliminate certain covenants and restrictive provisions, contingent on the completion of Omnicom’s acquisition of IPG. As of August 25, 2025, Omnicom announced significant early participation in the exchange offers, receiving consents from a majority of noteholders, indicating strong support for the proposed amendments.

Interpublic Group and Omnicom Announce Joint Initiative

On August 11, 2025, Interpublic Group of Companies (IPG) and Omnicom Group announced a joint initiative related to Omnicom’s pending acquisition of IPG. Omnicom has initiated exchange offers for IPG’s outstanding senior notes, offering up to $2.95 billion in new notes and cash. This move is part of a broader strategy to amend existing indentures and eliminate certain covenants, contingent upon the merger’s completion. The exchange offers and consent solicitations aim to streamline operations and potentially enhance financial flexibility, impacting stakeholders by potentially altering the financial landscape post-merger.

Interpublic Group Gains FTC Clearance for Acquisition

On June 23, 2025, Omnicom Group Inc. and The Interpublic Group of Companies, Inc. announced that the U.S. Federal Trade Commission has concluded its antitrust review of Omnicom’s proposed acquisition of Interpublic, granting early termination of the waiting period under the Hart-Scott-Rodino Act. This regulatory clearance marks a significant step towards finalizing the acquisition, which is expected to enhance the combined companies’ capabilities in meeting evolving client needs in a technology and data-driven landscape.