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14.33 (1y: +33%)
Market Cap 6.19 B P/E(ttm) 17.20
Enterprise Value 7.04 B P/B 2.40
IPG- NYSE (USA)
Interpublic Group of Cos Inc
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$14.33
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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry		 vs
history
Cash to Debt 1.058
IPG's Cash to Debt is ranked lower than
75% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 33.81 vs. IPG: 1.058 )
IPG' s 10-Year Cash to Debt Range
Min: 0.32   Max: 1.55
Current: 1.06
0.32
1.55
Equity to Asset -0.096
IPG's Equity to Asset is ranked lower than
83% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 0.42 vs. IPG: -0.096 )
IPG' s 10-Year Equity to Asset Range
Min: -0.12   Max: -0
Current: -0.1
-0.12
-0
Interest Coverage 6.5
IPG's Interest Coverage is ranked lower than
73% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 247.35 vs. IPG: 6.5 )
IPG' s 10-Year Interest Coverage Range
Min: 0   Max: 9
Current: 6.5
0
9
F-Score: 5
Z-Score: 1.28
M-Score: -2.22
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry		 vs
history
Operating margin (%) 9.80
IPG's Operating margin (%) is ranked higher than
61% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 4.15 vs. IPG: 9.80 )
IPG' s 10-Year Operating margin (%) Range
Min: -3.6   Max: 14.8
Current: 9.8
-3.6
14.8
Net-margin (%) 6.4
IPG's Net-margin (%) is ranked higher than
60% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 2.30 vs. IPG: 6.4 )
IPG' s 10-Year Net-margin (%) Range
Min: -8.4   Max: 7.6
Current: 6.4
-8.4
7.6
ROE (%) 18.5
IPG's ROE (%) is ranked higher than
68% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 7.20 vs. IPG: 18.5 )
IPG' s 10-Year ROE (%) Range
Min: -31.3   Max: 21.6
Current: 18.5
-31.3
21.6
ROA (%) 3.3
IPG's ROA (%) is ranked lower than
56% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 3.60 vs. IPG: 3.3 )
IPG' s 10-Year ROA (%) Range
Min: -4.7   Max: 4.1
Current: 3.3
-4.7
4.1
Revenue Growth (%) 5.1
IPG's Revenue Growth (%) is ranked lower than
83% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 1.80 vs. IPG: 5.1 )
IPG' s 10-Year Revenue Growth (%) Range
Min: -4.8   Max: 5.1
Current: 5.1
-4.8
5.1
EBITDA Growth (%) 14.2
IPG's EBITDA Growth (%) is ranked higher than
81% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 2.65 vs. IPG: 14.2 )
IPG' s 10-Year EBITDA Growth (%) Range
Min: -38.2   Max: 52.8
Current: 14.2
-38.2
52.8
EPS Growth (%) 49.1
IPG's EPS Growth (%) is ranked higher than
95% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 1.05 vs. IPG: 49.1 )
IPG' s 10-Year EPS Growth (%) Range
Min: -36.5   Max: 49.1
Current: 49.1
-36.5
49.1
» IPG's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

IPG Guru Trades in Q2 2012

Jim Simons 50,571 sh (New)
Jean-Marie Eveillard 627,900 sh (New)
Steven Cohen 3,134,574 sh (+1193.81%)
Ray Dalio 954,178 sh (+127.69%)
HOTCHKIS & WILEY 13,996,568 sh (+21.2%)
Joel Greenblatt 365,140 sh (+7%)
Mario Gabelli 1,324,300 sh (+6.84%)
Westport Asset Management 926,192 sh (+2.91%)
First Pacific Advisors 4,563,300 sh (unchged)
Steven Romick 4,421,800 sh (unchged)
Paul Tudor Jones Sold Out
John Rogers 14,415,166 sh (-2.15%)
Jeff Auxier 84,759 sh (-6.22%)
NWQ Managers 4,317,751 sh (-15.81%)
Dodge & Cox 38,700 sh (-53.26%)
Chuck Royce 237,006 sh (-75.69%)
Louis Moore Bacon 25,000 sh (-94.27%)
» More
Q3 2012

IPG Guru Trades in Q3 2012

Pioneer Investments 1,577,827 sh (New)
Jean-Marie Eveillard 3,653,470 sh (+481.86%)
First Pacific Advisors 7,415,200 sh (+62.5%)
Steven Romick 7,080,000 sh (+60.12%)
HOTCHKIS & WILEY 17,294,268 sh (+23.56%)
Joel Greenblatt 405,849 sh (+11.15%)
John Rogers 15,439,069 sh (+7.1%)
Mario Gabelli 1,329,300 sh (+0.38%)
NWQ Managers 4,333,434 sh (+0.36%)
Westport Asset Management 926,192 sh (unchged)
Louis Moore Bacon Sold Out
Jim Simons Sold Out
Chuck Royce Sold Out
Dodge & Cox 35,800 sh (-7.49%)
Ray Dalio 654,472 sh (-31.41%)
Jeff Auxier 51,759 sh (-38.93%)
Steven Cohen 57,701 sh (-98.16%)
» More
Q4 2012

IPG Guru Trades in Q4 2012

RS Investment Management 5,822,025 sh (New)
First Pacific Advisors 9,992,200 sh (+34.75%)
Steven Romick 9,532,300 sh (+34.64%)
HOTCHKIS & WILEY 21,462,868 sh (+24.1%)
Pioneer Investments 1,785,660 sh (+13.17%)
Jean-Marie Eveillard 4,119,470 sh (+12.75%)
John Rogers 16,973,906 sh (+9.94%)
Steven Cohen 63,244 sh (+9.61%)
Joel Greenblatt 412,233 sh (+1.57%)
Westport Asset Management 926,192 sh (unchged)
Ray Dalio Sold Out
Mario Gabelli 1,314,300 sh (-1.13%)
NWQ Managers 4,047,779 sh (-6.59%)
Jeff Auxier 39,026 sh (-24.6%)
Dodge & Cox 17,800 sh (-50.28%)
» More
Q1 2013

IPG Guru Trades in Q1 2013

Jim Simons 1,211,000 sh (New)
Richard Pzena 10,896,259 sh (New)
Steven Cohen 161,127 sh (+154.77%)
John Rogers 17,805,401 sh (+4.9%)
Jean-Marie Eveillard 4,267,970 sh (+3.6%)
RS Investment Management 5,862,355 sh (+0.69%)
Steven Romick 9,532,300 sh (unchged)
Mario Gabelli 1,314,300 sh (unchged)
First Pacific Advisors 9,992,200 sh (unchged)
Westport Asset Management 926,192 sh (unchged)
Jeff Auxier 39,026 sh (unchged)
Pioneer Investments Sold Out
HOTCHKIS & WILEY 21,437,168 sh (-0.12%)
Joel Greenblatt 376,967 sh (-8.55%)
NWQ Managers 3,401,600 sh (-15.96%)
Dodge & Cox 12,600 sh (-29.21%)
» More
» Details

Insider Trades

Latest Guru Trades with IPG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Dodge & Cox 2013-03-31 Reduce -29.21%$11.02 - $13.38 $ 14.4416%12600
Ray Dalio 2012-12-31 Sold Out 0.1%$9.45 - $11.47 $ 14.4435%0
Dodge & Cox 2012-12-31 Reduce -50.28%$9.45 - $11.47 $ 14.4435%17800
Jean-Marie Eveillard 2012-09-30 Add 481.86%0.12%$9.67 - $11.75 $ 14.4432%3653470
Ray Dalio 2012-09-30 Reduce -31.41%0.05%$9.67 - $11.75 $ 14.4432%654472
Ray Dalio 2012-06-30 Add 127.69%0.08%$10.03 - $11.9 $ 14.4433%954178
Jean-Marie Eveillard 2012-06-30 New Buy0.03%$10.03 - $11.9 $ 14.4433%627900
Dodge & Cox 2012-06-30 Reduce -53.26%$10.03 - $11.9 $ 14.4433%38700
Joel Greenblatt 2012-03-31 Add 186.32%0.22%$10.16 - $11.97 $ 14.4440%341245
Ray Dalio 2012-03-31 Reduce -57.62%0.09%$10.16 - $11.97 $ 14.4440%419078
Ray Dalio 2011-12-31 Reduce -44.99%0.09%$6.95 - $9.92 $ 14.4462%988778
Joel Greenblatt 2011-12-31 Add 152.11%0.08%$6.95 - $9.92 $ 14.4462%119183
Ray Dalio 2011-09-30 Add 278.09%0.14%$7.24 - $12.84 $ 14.4455%1797516
Joel Greenblatt 2011-09-30 New Buy0.06%$7.24 - $12.84 $ 14.4454%47275
Dodge & Cox 2011-09-30 Reduce -38.78%$7.24 - $12.84 $ 14.4454%125500
Joel Greenblatt 2011-06-30 Sold Out 0.05%$11.15 - $12.63 $ 14.4423%0
Dodge & Cox 2011-06-30 Reduce -87.84%0.02%$11.15 - $12.63 $ 14.4423%205000
Dodge & Cox 2011-03-31 Reduce -94.97%0.38%$10.47 - $13.2 $ 14.4423%1685810
Mario Gabelli 2011-03-31 Reduce -72.41%0.29%$10.47 - $13.2 $ 14.4423%1179500
Joel Greenblatt 2011-03-31 New Buy0.05%$10.47 - $13.2 $ 14.4423%12000
George Soros 2011-03-31 Sold Out $10.47 - $13.2 $ 14.4423%0
George Soros 2010-12-31 Add 117.8%0.01%$9.98 - $11.11 $ 14.4436%41600
George Soros 2010-09-30 New Buy$6.93 - $10.17 $ 14.4465%19100
Premium More recent guru trades are included for Premium Members only!!

Preferred stocks of Interpublic Group of Cos Inc

SymbolPriceYieldDescription
INPGP1286.001.20

Guru Investment Theses on Interpublic Group of Cos Inc

John Rogers of Ariel Investments Comments on Interpublic Group - Aug 17, 2012

From John Rogers' second-quarter letter:

For example, Interpublic Group of Cos., Inc. (IPG) has the distinction of being one of the world's largest advertising conglomerates. When confronted with economic challenges, companies can and often do quickly scale back marketing and advertising to save money. And yet, IPG not only grew but was able to show margin expansion over the last four years—a period when tepid economic growth was a headwind. All the while, the company also managed to buy back half a billion dollars of dilutive convertible debt. In so doing, Debt/EBITDA substantially improved from 2.81x to 1.92x, which ultimately provided the company access to more favorable debt markets. This level of debt reduction, along with the company's repurchase of 52 million shares, has cut its diluted share count from 553 million to 438 million shares—a 20% decrease in shares outstanding. It is worth noting that even after this hefty $700 million spend, the company still had the ability to issue its first dividend in nearly a decade.



Check out John Rogers latest stock trades

Top Ranked Articles about Interpublic Group of Cos Inc

Steven Romick Adds to Microsoft, AIG and Interpublic Group
January 21, 2013
Steven Romick - Steven Romick Adds To Microsoft, AIG And Interpublic Group
Of the $20 billion FPA Capital has in assets under management, Steven Romick manages $9.9 billion in its Crescent Fund, none of which he saw fit to invest in new stocks for the second consecutive quarter. The contrarian value investor instead added the most to Interpublic Group (IPG), Microsoft Corp. (MSFT) and American International Group Inc. (AIG). Read more...
Steven Romick Buys Analog Devices, Adds to IPG, AIG and ORCL in Third Quarter
October 16, 2012
Steven Romick - Steven Romick Buys Analog Devices, Adds To IPG, AIG And ORCL In Third Quarter
Portfolio manager of the FPA Crescent Fund and Contrarian Value Strategy at First Pacific Advisors, Steven Romick, added one new domestic stock to his portfolio in the third quarter: Analog Devices Inc. (ADI). The largest additions to the 10 holdings he increased are: Interpublic Group of Companies Inc. (IPG), American International Group Inc. (AIG) and Oracle Corp. (ORCL). Read more...
John Rogers of Ariel Investments Comments on Interpublic Group
August 17, 2012
From John Rogers' second-quarter letter: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 17.30
IPG's P/E(ttm) is ranked higher than
77% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 25.26 vs. IPG: 17.30 )
IPG' s 10-Year P/E(ttm) Range
Min: 6.46   Max: 1073
Current: 17.3
6.46
1073
P/B 2.47
IPG's P/B is ranked lower than
56% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 1.74 vs. IPG: 2.47 )
IPG' s 10-Year P/B Range
Min: 0.75   Max: 8.95
Current: 2.47
0.75
8.95
P/S 1.01
IPG's P/S is ranked lower than
57% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 0.68 vs. IPG: 1.01 )
IPG' s 10-Year P/S Range
Min: 0.24   Max: 3.01
Current: 1.01
0.24
3.01
PFCF 30.40
IPG's PFCF is ranked lower than
77% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 12.69 vs. IPG: 30.40 )
IPG' s 10-Year PFCF Range
Min: 2.69   Max: 384.66
Current: 30.4
2.69
384.66
EV-to-EBIT 10.42
IPG's EV-to-EBIT is ranked higher than
84% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 18.20 vs. IPG: 10.42 )
IPG' s 10-Year EV-to-EBIT Range
Min: 3.8   Max: 386.5
Current: 10.42
3.8
386.5
PEG 2.25
IPG's PEG is ranked higher than
99% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 2.35 vs. IPG: 2.25 )
IPG' s 10-Year PEG Range
Min: 0.81   Max: 4.15
Current: 2.25
0.81
4.15
Shiller P/E 24.98
IPG's Shiller P/E is ranked higher than
84% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 12.20 vs. IPG: 24.98 )
IPG' s 10-Year Shiller P/E Range
Min: 19.96   Max: 360.33
Current: 24.98
19.96
360.33

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 1.77
IPG's Dividend Yield is ranked higher than
73% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 1.93 vs. IPG: 1.77 )
IPG' s 10-Year Dividend Yield Range
Min: 0.46   Max: 4.01
Current: 1.77
0.46
4.01
Dividend Payout 0.3
IPG's Dividend Payout is ranked higher than
91% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 0.82 vs. IPG: 0.3 )
IPG' s 10-Year Dividend Payout Range
Min: 0.24   Max: 1.46
Current: 0.3
0.24
1.46
Yield on cost (5-Year) 1.70
IPG's Yield on cost (5-Year) is ranked higher than
73% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 2.00 vs. IPG: 1.70 )
IPG' s 10-Year Yield on cost (5-Year) Range
Min: 0.46   Max: 4.01
Current: 1.7
0.46
4.01
Share Buyback Rate 1.3
IPG's Share Buyback Rate is ranked higher than
77% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: -0.60 vs. IPG: 1.3 )
IPG' s 10-Year Share Buyback Rate Range
Min: 1.3   Max: -7.1
Current: 1.3

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 1.4
IPG's Price/Net Current Asset Value is ranked higher than
60% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 4.40 vs. IPG: 1.4 )
IPG' s 10-Year Price/Net Current Asset Value Range
Min: 0.6   Max: 3.8
Current: 1.4
0.6
3.8
Price/DCF (Projected) 1.1
IPG's Price/DCF (Projected) is ranked higher than
90% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 0.80 vs. IPG: 1.1 )
IPG' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 1.8
Current: 1.1
0.6
1.8
Price/Median PS Value 1
IPG's Price/Median PS Value is ranked higher than
84% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 0.80 vs. IPG: 1 )
IPG' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 3
Current: 1
0.4
3
Price/Peter Lynch Fair Value 2.5
IPG's Price/Peter Lynch Fair Value is ranked lower than
62% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 1.50 vs. IPG: 2.5 )
IPG' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1   Max: 2.2
Current: 2.5
1
2.2
Earnings Yield (Greenblatt) 9.60
IPG's Earnings Yield (Greenblatt) is ranked higher than
90% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 5.00 vs. IPG: 9.60 )
IPG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 26.5
Current: 9.6
0.3
26.5
Forward Rate of Return (Yacktman) 10.58
IPG's Forward Rate of Return (Yacktman) is ranked lower than
79% of the 77 Companies
in the Global Advertising Agencies industry.

( Industry Median: 10.49 vs. IPG: 10.58 )
IPG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -25.6   Max: 45.7
Current: 10.58
-25.6
45.7

Business Description

Interpublic Group of Companies, Inc. was incorporated in Delaware in September 1930 under the name of McCann-Erickson Incorporated as the successor to the advertising agency businesses founded in 1902. It has operated under the Interpublic name since January 1961. It is a global advertising and marketing services. The Company has two reportable segments: Integrated Agency Network (IAN), which is comprised of McCann, Draftfcb, Lowe, Mediabrands and its domestic integrated agencies; and Constituency Management Group (CMG), which is comprised of the bulk of its specialist marketing service offerings. Within IAN, the Company's agencies provide an array of global communications and marketing services, each offering a distinctive range of solutions for its clients. In addition, the Company's domestic integrated agencies, including Campbell-Ewald, Hill Holliday, Deutsch and Mullen, provide a full range of advertising, marketing communications services and/or marketing services and partner with its global operating divisions as needed. CMG, which includes Weber Shandwick, MWW Group, FutureBrand, DeVries, GolinHarris, Jack Morton, and Octagon Worldwide, provides clients with services including public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity and strategic marketing consulting. Certain Corporate and other charges are reported as a separate line item within total segment operating income and include corporate office expenses and shared service center expenses, as well as certain other centrally managed expenses that are not fully allocated to operating divisions. The Company's agency brands create marketing solutions on behalf of clients in every major world market. Its companies cover the spectrum of marketing disciplines and specialties, from traditional services such as consumer advertising and public relations to emerging services such as mobile and search engine marketing. The Company's solutions vary from project-based activity involving one agency and its client to long-term, fully-integrated campaigns created by a group of its companies working together on behalf of a client. With offices in over 100 countries, the Company could operate in a single region or align work globally across all major world markets. To keep the Company well-positioned in an evolving industry, it supports its agencies' talent and operational initiatives to expand high-growth capabilities and build offerings in key developing markets. When appropriate, it also develops relationships with companies that are building leading-edge marketing tools that complement its agencies and the programs they are developing for clients. The Company's agencies and media services compete with other agencies, and with other providers of creative or media services, in order to maintain existing client relationships and to win new clients. Its competitors include not only other large multinational advertising and ma
Company Website
SEC Reports
Industry: Advertising Agencies
Compare:WPPGY, PUBGY, LAMR, FMCN, HKUOY
Traded in other countries:INPGP.USA, IPG.Germany
» More Articles for IPG

Headlines

Articles On GuruFocus.com
Richard Pzena Buys 5 New Stocks May 14 2013 
WEEKLY CFO SELLS HIGHLIGHT: THRX, BERY, IPG, PG, ZNGA, TSS May 05 2013 
Steven Romick Adds to Microsoft, AIG and Interpublic Group Jan 21 2013 
Ariel Fund’s John Rogers Stocks Up on Contango Oil Dec 06 2012 
What is Your Required Rate of Return? Nov 11 2012 
Steven Romick Buys Analog Devices, Adds to IPG, AIG and ORCL in Third Quarter Oct 16 2012 
John Rogers of Ariel Investments Comments on Interpublic Group Aug 17 2012 
John Rogers Ariel Fund Second Quarter Report Aug 16 2012 
Ken Fisher Forbes Column: Five Classic Dividend Stocks Jun 29 2012 
Steven Romick’s New Buys Are Google, Interpublic Group and Bank of America Apr 16 2012 

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