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Publicis Groupe SA (PUBGY)
OTHER OTC:PUBGY
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Publicis Groupe SA
(OTC:PUBGY)
77Outperform
Publicis Groupe SA (PUBGY) vs. S&P 500 (SPY)
Market Cap
$27.03B
Dividend Yield2.42%
Average Volume (3M)9.02K
Price to Earnings (P/E)15.1
Beta (1Y)0.92
Revenue Growth8.35%
EPS Growth26.58%
CountryUS
Employees107,273
SectorCommunication Services
Sector Strength84
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.04
Shares Outstanding1,017,247,440
10 Day Avg. Volume0
30 Day Avg. Volume9,021
Financial Highlights & Ratios
PEG Ratio1.41
Price to Book (P/B)2.14
Price to Sales (P/S)0.00
P/FCF Ratio16.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Publicis Groupe SA Business Overview & Revenue Model
Company DescriptionPublicis Groupe SA is a global leader in marketing, communication, and digital transformation services headquartered in Paris, France. The company operates in various sectors, including advertising, media, healthcare communication, and digital business transformation. It offers a comprehensive range of services, such as creative solutions, media planning and buying, digital marketing, and data analytics through its well-known brands like Publicis Worldwide, Leo Burnett, Saatchi & Saatchi, and Sapient.
How the Company Makes MoneyPublicis Groupe SA generates revenue primarily through its diverse service offerings in advertising and communication. The company's key revenue streams include fees for creative and media services, digital marketing, and consultancy. Publicis also earns from strategic partnerships and long-term contracts with some of the world's largest brands, providing integrated solutions that blend creativity with data and technology. Additionally, the group's focus on digital transformation and data analytics has become a significant growth driver, aligning with the increasing demand for digital marketing solutions. Publicis' ability to offer end-to-end services from strategy to execution helps it maintain strong client relationships and secure recurring revenue.
Publicis Groupe SA Financial Statement Overview
Summary
Publicis Groupe SA presents a solid financial performance with growth in revenue and profitability. The balance sheet is strong, with controlled leverage and good equity support. Cash flow management is effective, ensuring sufficient liquidity and strategic flexibility. The company is well-positioned in the traditional media industry, with financial metrics that support future growth and stability.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 | ||||
| 19.20B | 16.03B | 14.80B | 14.20B | 11.74B | 10.79B | Gross Profit |
| 6.13B | 16.03B | 6.40B | 2.06B | 1.64B | 1.39B | EBIT |
| 2.90B | 2.21B | 1.74B | 2.36B | 1.43B | 983.00M | EBITDA |
| 3.42B | 3.15B | 2.68B | 2.56B | 2.26B | 2.21B | Net Income Common Stockholders |
| 1.81B | 1.66B | 1.31B | 1.22B | 1.03B | 576.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.25B | 3.82B | 4.25B | 4.62B | 3.66B | 3.70B | Total Assets |
| 36.72B | 39.85B | 36.72B | 35.90B | 32.85B | 30.16B | Total Debt |
| 5.54B | 5.17B | 5.54B | 6.17B | 5.72B | 6.65B | Net Debt |
| 1.29B | 1.53B | 1.29B | 1.56B | 2.06B | 2.95B | Total Liabilities |
| 26.97B | 28.82B | 26.97B | 26.30B | 24.29B | 23.00B | Stockholders Equity |
| 9.79B | 11.06B | 9.79B | 9.63B | 8.59B | 7.18B |
| Cash Flow | Free Cash Flow | ||||
| 2.41B | 2.06B | 1.87B | 2.22B | 1.65B | 2.80B | Operating Cash Flow |
| 2.69B | 2.30B | 2.05B | 2.42B | 1.79B | 2.97B | Investing Cash Flow |
| -494.50M | -1.12B | -348.00M | -749.00M | -405.00M | -309.00M | Financing Cash Flow |
| -2.48B | -2.01B | -1.75B | -1.00B | -1.68B | -1.99B |
Publicis Groupe SA Technical Analysis
Positive
26.51
Price Trends
24.69
Positive
25.54
Positive
26.16
Positive
Market Momentum
0.66
Negative
67.45
Neutral
97.36
Negative
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 26.51 is above the 20-day moving average (MA) of 25.54, above the 50-day MA of 24.69, and above the 200-day MA of 26.16, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 97.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PUBGY.
Publicis Groupe SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $27.03B | 15.07 | 16.13% | 2.42% | 8.35% | 26.58% | |
71 Outperform | $9.42B | 19.25 | 13.33% | 5.24% | -3.18% | -53.36% | |
71 Outperform | $8.55B | 12.47 | 16.04% | 6.28% | 2.07% | 407.27% | |
69 Neutral | $1.52B | 11.59 | 13.46% | ― | -1.18% | 100.33% | |
69 Neutral | $15.02B | 10.44 | 36.50% | 3.67% | 5.84% | -1.17% | |
63 Neutral | $1.42B | 1,039.22 | 0.19% | ― | 9.86% | ― | |
60 Neutral | $14.09B | 6.86 | -3.35% | 3.70% | 2.42% | -36.28% |
* Communication Services Sector Average
Performance Comparison
PUBGY
Publicis Groupe SA
26.51
-1.71
-6.06%
IPG
Interpublic Group of Companies
25.49
-5.12
-16.73%
STGW
Stagwell
5.30
-1.73
-24.61%
OMC
Omnicom Group
76.97
-16.33
-17.50%
WPP
WPP
39.77
-11.31
-22.14%
CRTO
Criteo SA
28.42
-8.82
-23.68%
Publicis Groupe SA Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q4-2024)
| % Change Since: 0.42%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
Publicis Groupe delivered a strong financial and operational performance in 2024, ending the year as the largest advertising group by net revenue. Despite challenges such as pricing pressure and regional softness, they maintained industry-leading margins and continued to invest in growth through strategic acquisitions. The overall sentiment is positive, with significant achievements outweighing the challenges faced.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
Publicis Groupe achieved full-year organic growth of 5.8%, outperforming the industry for the fifth consecutive year. They ended 2024 as the largest advertising group by net revenue, with €13.965 billion, up 6.6% from 2023.
Strong Financial Performance
The operating margin reached a record high of 18%, the highest in the industry by 250 basis points. Headline EPS exceeded analyst estimates at €7.30, up 4.9% from 2023.
Geographical and Segment Success
All regions posted strong organic growth with the US at 4.9%, Europe at 5.4%, and Asia-Pacific at 6.3%. Connected Media saw high single-digit growth, driven by market share gains.
M&A and Investment Strategy
Publicis accelerated its bolt-on investments, spending €1.2 billion, including acquisitions in influencer marketing and commerce, contributing to their growth strategy.
ESG Leadership
Publicis maintained its position as an industry leader in ESG, ranked number one by leading rating agencies for sustainable business practices and responsible marketing.
Negative Updates
Publicis Sapient Performance
Publicis Sapient saw a slight full-year decline with a flat Q4, impacted by client cautiousness towards CapEx spend due to a challenging macro environment.
Pricing Pressure
Despite a strong financial performance, Publicis faced significant pricing pressure in the current environment, impacting the margin improvements.
Soft Performance in Some European Markets
France posted a slight organic decline of 2.1% due to tougher comparables, and Germany remained broadly stable, indicating some regional challenges.
Company Guidance
In the call, Publicis Groupe provided extensive guidance on its financial performance and strategic priorities. For fiscal year 2024, the company achieved a record full-year organic growth of 5.8%, surpassing industry peers for the fifth consecutive year. They reported a record operating margin of 18% and a headline EPS of €7.30, representing a 4.9% increase from 2023. Their free cash flow reached €1.84 billion, with the company proposing a €3.60 per share dividend. Looking ahead to 2025, Publicis Groupe aims for 4% to 5% organic growth, slightly improving their operating margin, and generating between €1.9 billion to €2 billion in free cash flow. Additionally, they plan to invest €800 million to €900 million in bolt-on acquisitions, particularly in first-party data, production, digital media, and technology. They also highlighted strategic advantages in AI and a unique position in identity-led marketing and business transformation, leveraging their data capabilities and integrated media ecosystem.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.