GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Omnicom Group Inc (BSP:O1MC34) » Definitions » 5-Year RORE %

Omnicom Group (BSP:O1MC34) 5-Year RORE % : 16.32% (As of Sep. 2024)


View and export this data going back to 2020. Start your Free Trial

What is Omnicom Group 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Omnicom Group's 5-Year RORE % for the quarter that ended in Sep. 2024 was 16.32%.

The industry rank for Omnicom Group's 5-Year RORE % or its related term are showing as below:

BSP:O1MC34's 5-Year RORE % is ranked better than
67.56% of 854 companies
in the Media - Diversified industry
Industry Median: -0.645 vs BSP:O1MC34: 16.32

Omnicom Group 5-Year RORE % Historical Data

The historical data trend for Omnicom Group's 5-Year RORE % 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.

* Premium members only.

Omnicom Group 5-Year RORE % Chart

Omnicom Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.25 6.80 20.72 10.59 9.85

Omnicom Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.36 9.85 10.55 17.49 16.32

Competitive Comparison of Omnicom Group's 5-Year RORE %

For the Advertising Agencies subindustry, Omnicom Group's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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's 5-Year RORE % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Omnicom Group's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where Omnicom Group's 5-Year RORE % falls into.



Omnicom Group 5-Year RORE % Calculation

Omnicom Group's 5-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 19.02-10.416 )/( 80.136-27.428 )
=8.604/52.708
=16.32 %

* 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 5-year before.


Omnicom Group  (BSP:O1MC34) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Omnicom Group 5-Year RORE % Related Terms

Thank you for viewing the detailed overview of Omnicom Group's 5-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Omnicom Group Business Description

Traded in Other Exchanges
Address
280 Park Avenue, New York, NY, USA, 10017
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, and ad placement. In addition, Omnicom provides outsourced public relations and other communications services. 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.

Omnicom Group Headlines

No Headlines