Publicis Groupe S.A.
Publicis Groupe S.A. Fundamental Analysis
Publicis Groupe S.A. (PUBGY) shows moderate financial fundamentals with a PE ratio of 11.44, profit margin of 12.63%, and ROE of 16.47%. The company generates $13.0B in annual revenue with moderate year-over-year growth of 8.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PUBGY's fundamental strength across five key dimensions:
Efficiency Score
WeakPUBGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPUBGY trades at attractive valuation levels.
Growth Score
ExcellentPUBGY delivers strong and consistent growth momentum.
Financial Health Score
ModeratePUBGY shows balanced financial health with some risks.
Profitability Score
ModeratePUBGY maintains healthy but balanced margins.
Key Financial Metrics
Is PUBGY Expensive or Cheap?
P/E Ratio
PUBGY trades at 11.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PUBGY's PEG of -2.42 indicates potential undervaluation.
Price to Book
The market values Publicis Groupe S.A. at 1.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.50 times EBITDA. This is generally considered low.
How Well Does PUBGY Make Money?
Net Profit Margin
For every $100 in sales, Publicis Groupe S.A. keeps $12.63 as profit after all expenses.
Operating Margin
Core operations generate 18.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.47 in profit for every $100 of shareholder equity.
ROA
Publicis Groupe S.A. generates $4.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Publicis Groupe S.A. produces operating cash flow of $3.18B, showing steady but balanced cash generation.
Free Cash Flow
Publicis Groupe S.A. generates strong free cash flow of $2.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.98 in free cash annually.
FCF Yield
PUBGY converts 15.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How PUBGY Stacks Against Its Sector Peers
| Metric | PUBGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.44 | 23.32 | Better (Cheaper) |
| ROE | 16.47% | 1104.00% | Weak |
| Net Margin | 12.63% | -55937.00% (disorted) | Strong |
| Debt/Equity | 0.54 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 0.97 | 1.56 | Weak Liquidity |
| ROA | 4.13% | -45352.00% (disorted) | Weak |
PUBGY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Publicis Groupe S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.19%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
84.26%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-8.60%
Industry Style: Growth, Technology, Streaming
Declining