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Publicis Groupe Sa (PUBGY)
:PUBGY
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Publicis Groupe SA
(OTC:PUBGY)
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Rating:80Outperform
Price Target:
$27.00
▲(7.66% Upside)
Publicis Groupe SA receives a strong overall stock score driven by robust financial performance and positive earnings call insights. The company's attractive valuation and solid technical indicators further support the score, despite minor challenges in specific segments and currency impacts.
Publicis Groupe SA (PUBGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.69B
Dividend Yield4.42%
Average Volume (3M)3.37K
Price to Earnings (P/E)13.3
Beta (1Y)0.80
Revenue Growth10.50%
EPS Growth17.48%
CountryUS
Employees107,273
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.02
Shares Outstanding1,017,247,440
10 Day Avg. Volume0
30 Day Avg. Volume3,370
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.32
Price to Sales (P/S)1.60
P/FCF Ratio12.45
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit2.19
Enterprise Value/Ebitda13.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Publicis Groupe SA Business Overview & Revenue Model
Company DescriptionPublicis Groupe SA (PUBGY) is a leading global communications group headquartered in France, specializing in advertising, marketing, and digital transformation solutions. The company operates through various segments, including Publicis Communications, Publicis Media, Publicis Sapient, and Publicis Health. Its core offerings encompass advertising services, media planning and buying, digital marketing, data analytics, and consulting, effectively catering to a diverse range of clients across multiple industries.
How the Company Makes MoneyPublicis Groupe generates revenue through a diversified model primarily based on the provision of advertising and marketing services. Key revenue streams include fees from creative and media agencies for developing and executing advertising campaigns, as well as commissions from media buying. Additionally, the company earns income from digital services, including data analytics, strategy consulting, and technology integration through its Publicis Sapient division. Strategic partnerships with major technology and media platforms also contribute significantly to its revenues. The company capitalizes on long-term relationships with clients to ensure recurring business, while its global reach allows it to tap into various markets and sectors, enhancing its overall earning potential.
Publicis Groupe SA Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
Publicis Groupe reported a robust performance in H1 2025, with strong organic growth, improved operating margins, and significant new business wins. Despite challenges in Publicis Sapient and currency headwinds, the company upgraded its full-year guidance and demonstrated successful strategic acquisitions.Q2-2025 Updates
Positive Updates
Strong Organic Growth
Publicis Groupe reported an organic growth of 5.4% in H1 2025, with Q2 growth at 5.9%. This performance is ahead of their 5-year CAGR of 4.9%.
Operating Margin Improvement
The company achieved an industry-high operating margin of 17.4% in H1, increasing the gap with competitors by nearly 600 basis points.
Upgrade in Full-Year Guidance
Publicis raised its full-year net revenue organic growth guidance to close to 5%, from the initial 4% to 5% range.
Significant New Business Wins
The company secured $5.2 billion in net new business billings in H1, up 68% versus H1 2024, contributing 200+ basis points to 2025 growth.
Strong Performance Across Geographies
The U.S. showed solid organic growth at 5.3%, Europe at 4.6%, and Asia Pacific at 5.7%, with China up 5.2% in Q2.
Successful Acquisition Strategy
Investments of EUR 600 million in H1, with contributions from acquisitions like Lotame and Influential significantly boosting growth.
Negative Updates
Challenges in Publicis Sapient
Publicis Sapient remained negative in H1 and is expected to stay negative in H2 due to ongoing client wait-and-see attitudes on CapEx spend.
Currency Headwinds
Currency movements had a net negative impact of 420 basis points on Q2 revenue, with an expected full-year impact of EUR 500 million to EUR 550 million.
Increased Restructuring Costs
Restructuring charges increased by EUR 22 million to EUR 63 million in H1, primarily due to talent upgrades.
Company Guidance
In the first half of 2025, Publicis Groupe demonstrated a solid performance with a 5.4% organic growth, driven by a strong Q2 performance of 5.9% growth. The group saw its operating margin slightly improve to 17.4%, setting an industry high, and revised its full-year net revenue organic growth guidance to close to 5%, up from an initial 4% to 5% range. This was attributed to significant net new business wins and strong market share gains, with the latter outperforming competitors by nearly 800 basis points. By segment, Connected Media, accounting for approximately 60% of net revenue, grew in high single digits, while Intelligent Creativity and Publicis Sapient each contributed 25% and 15% to net revenue, respectively. Geographically, North America, Europe, and Asia Pacific all posted robust organic growth. Publicis Groupe also reported a headline EPS of EUR 3.51, up 3.8% from H1 2024, and free cash flow of EUR 828 million, surpassing last year's EUR 744 million. Average net debt stood at EUR 836 million, and the group continued its acquisition strategy, with EUR 600 million invested in H1, aligning with its EUR 800 million to EUR 900 million target for 2025.Publicis Groupe SA Financial Statement Overview
Summary
Publicis Groupe SA demonstrates strong financial performance with consistent revenue growth, improving margins, and effective cash flow management. The balance sheet is stable with manageable leverage, and the company is well-positioned for future growth.Income Statement
Publicis Groupe SA demonstrates strong income statement metrics, with consistent revenue growth and improving margins. The gross profit margin is robust, with a notable increase in net profit margin from previous years, reflecting improved operational efficiency. The EBIT and EBITDA margins are healthy, indicating solid profitability. The revenue growth rate from 2023 to 2024 is approximately 8.29%, which is a positive indicator of business expansion.86
Very Positive
Balance Sheet
The balance sheet shows a stable financial structure with a manageable debt-to-equity ratio. The company's equity ratio is healthy, suggesting good leverage management. Return on equity (ROE) is strong, reflecting effective use of shareholder funds to generate profits. The overall stability is reinforced by sufficient equity supporting the company's asset base.79
Positive
Cash Flow
Publicis Groupe SA exhibits strong cash flow metrics. The operating cash flow to net income ratio indicates efficient conversion of earnings into cash. Free cash flow growth is positive, supporting strategic reinvestment and shareholder returns. The free cash flow to net income ratio is healthy, suggesting adequate cash generation relative to profitability.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.62B | 16.03B | 14.80B | 14.20B | 11.74B | 10.79B |
| Gross Profit | 14.70B | 16.03B | 6.40B | 6.07B | 5.15B | 4.72B |
| EBITDA | 2.35B | 3.15B | 2.68B | 2.56B | 2.12B | 1.94B |
| Net Income | 1.30B | 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 | 2.34B | 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 | 2.41B | 2.06B | 1.87B | 2.20B | 1.57B | 2.69B |
| Operating Cash Flow | 2.58B | 2.30B | 2.05B | 2.40B | 1.71B | 2.85B |
| Investing Cash Flow | -1.06B | -1.12B | -348.00M | -752.00M | -405.00M | -309.00M |
| Financing Cash Flow | -1.62B | -2.01B | -1.75B | -980.00M | -1.68B | -1.99B |
Publicis Groupe SA Technical Analysis
Positive
25.08
Price Trends
24.19
Positive
24.57
Positive
24.80
Positive
Market Momentum
0.35
Positive
54.82
Neutral
23.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PUBGY, the sentiment is Positive. The current price of 25.08 is above the 20-day moving average (MA) of 24.81, above the 50-day MA of 24.19, and above the 200-day MA of 24.80, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 23.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUBGY.
Publicis Groupe SA Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $24.69B | 13.31 | 16.96% | 4.42% | 10.50% | 17.48% | |
78 Outperform | $1.17B | 7.50 | 15.37% | ― | 0.32% | 69.78% | |
75 Outperform | $14.48B | 11.07 | 31.17% | 3.83% | 4.13% | -7.84% | |
64 Neutral | $3.89B | 7.88 | 11.24% | 11.35% | -1.89% | 90.72% | |
64 Neutral | $2.55B | 63.61 | 5.82% | ― | 5.52% | ― | |
63 Neutral | $9.40B | 21.73 | 11.70% | 5.14% | -5.16% | -56.06% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
PUBGY
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.