Omnicom GroupLTS:0KBK +2.58%81 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates LTS:0KBK with a GF Score™ of 81/100 and a GF Value™ of $94.51 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 859 Media - Diversified companies, Omnicom Group ranks better than 99.88% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Omnicom Group's annualized net income for the quarter that ended in Mar. 2026 was $1,621 Mil. Omnicom Group's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-12,969 Mil. Therefore, Omnicom Group's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Omnicom Group's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0KBK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LTS:0KBK's Return-on-Tangible-Equity is ranked better than 99.88% of 859
companies
in the Media - Diversified industry
Industry Median: 5.42
vs LTS:0KBK: Negative Tangible Equity
Omnicom Group (LTS:0KBK) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Omnicom Group Return-on-Tangible-Equity Related Terms
Omnicom Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Omnicom Group's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0KBK vs TTD, LFTO, MGNI: Return-on-Tangible-Equity Comparison
For the Advertising Agencies subindustry, Omnicom Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Omnicom Group Return-on-Tangible-Equity vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Omnicom Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Omnicom Group's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Omnicom Group (LTS:0KBK) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Omnicom Group and its competitors. According to the industry distribution chart, Omnicom Group ranks #1 out of 859 companies in the Media - Diversified industry, placing it in the top 0.099999999999994%.
Is Omnicom Group's Return-on-Tangible-Equity too high?
Omnicom Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Omnicom Group ranks #1 out of 859 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Omnicom Group has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Omnicom Group's Return-on-Tangible-Equity compare to TTD and LFTO?
According to the Media - Diversified industry distribution chart, Omnicom Group ranks #1 out of 859 companies for Return-on-Tangible-Equity. This places Omnicom Group in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.42. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Media - Diversified company?
The median Return-on-Tangible-Equity among Media - Diversified companies is 5.42, based on 859 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Omnicom Group and its competitors. For the Media - Diversified industry, the median Return-on-Tangible-Equity is 5.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Omnicom Group's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omnicom Group stock overvalued right now?
Based on GuruFocus' analysis, Omnicom Group (LTS:0KBK) is currently considered Modestly Undervalued. The stock's GF Value™ is $94.51, compared to a current price of $79.81 — trading 15.6% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Omnicom Group's overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Omnicom Group (LTS:0KBK), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Omnicom Group (LTS:0KBK) Overvalued in 2026?
Based on GuruFocus' analysis, Omnicom Group stock appears to be undervalued.
The current stock price of $79.81 is trading 15.6% below its estimated GF Value™ of $94.51.
GuruFocus considers Omnicom Group to be Modestly Undervalued.
No single metric tells the full story. See the LTS:0KBK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omnicom is a holding company that owns several advertising agencies and related firms. It provides traditional and digital advertising services that include creative design, market research, data analytics, ad placement, and public relations. The firm operates globally, providing services in more than 70 countries; it generates more than one half of its revenue in North America and nearly 30% in Europe.
81GF Score
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