PUBLICIS

Analysis of Publicis share price

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Are you planning to invest in this popular French company’s share price soon? In this article you can learn about the Publicis Company in detail with explanations on this group’s activities and view its share price in real time as well as its historical charts with a technical analysis covering the last ten years. In this manner you will be able to complete your own comprehensive analyses.

Elements that can influence the price of this asset:

Analysis N°1

The advertising market online is one of the major activity sectors of the Publicis Company so it would therefore be prudent to monitor its growth and any increase in demand from the sector of digital communications.

Analysis N°2

Generally speaking, the implantation of Publicis in the emerging companies is also a factor to monitor closely given that its requirements in advertising and marketing have been experiencing full growth over recent years.

Analysis N°3

Relating to the more mature markets, they should also be monitored as their growth is slowing and their advertising requirements continue to fall. We are in fact observing a saturation phenomenon which limits the growth of this company.

Analysis N°4

Finally, we would also recommend you take the time to monitor the competition in this sector with the publications and financial results of the different major players in the advertising sector worldwide.

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General presentation of Publicis

Publicis is currently the leader in the communications sector in France and the third largest worldwide. The vast majority of its turnover is generated through digital communication services but it also provides advertising and marketing services as well as the creation and management of media.

Based in France, Publicis achieves the majority of its income in North America, above Europe and Pacific Asia, Latin America, the Middle East and Africa.

The Publicis Group currently employs over 77,500 people around the world the majority of which are in France.

Analysis of Publicis share price
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The major competitors of Publicis

We now propose that you discover the main competitors of the Publicis group with a presentation of the major players in this market who can provide fierce competition:

Alliance Data

This American company specialises in creating and maintaining loyalty and marketing programmes such as issuing in-house credit cards or implementing direct marketing. In order to achieve its goals, the company relies on analyses of consumer habits for its corporate clients. The company employs 7,400 people.

Omnicom

This other company is a holding company belonging to the second largest network of advertising and communication agencies in the world, just like Publicis. Omnicom is active in all areas of communication including advertising, direct marketing, public relations, lobbying, marketing services, interactive communication and media buying.

Havas

This French group is a communications consultancy group which owns the subsidiary and advertising agency Havas Worldwide, formerly known as Euro RSCG in the United States. It also offers media buying with Havas Media. A first Havas company existed in the past between 1835 and 1998 before being bought by the Compagnie Générale des Eaux, which became Vivendi, and there was also a former subsidiary of this company called Havas Advertising, which was sold by Vivendi in 2002 and took the name Havas. Currently, Havas is the leading advertising group in France and is ranked sixth in the world. It was listed on the Euronext stock exchange until 2017.

Interpublic Group

Another competitor of Publicis is the American communications agency Interpublic. This company was founded in 1961 and is listed on the New York Stock Exchange under the code IPG.

Dentsu

The last major competitor of Publicis is the Japanese advertising group Dentsu, which is the market leader in Japan in terms of turnover and the fifth largest in the world.


The major partners of Publicis

Publicis has shown itself capable of implementing various strategic partnerships over recent years including the following.

Dassault

In 2007, the Publicis Group became allied with the Dassault Group through the creation of a joint company named 3dswym which was owned 51% by Publicis and 49% by Dassault of which the objective was combining the consumer knowledge of Publicis with the technological knowledge of Dassault in terms of 3D technology.

Energy Source

In 2008 Publicis also became allied with a Chinese company specialised in interactive solutions, Energy Source.

Dentsu

A few years ago Publicis created a joint company with the Japanese advertising group Dentsu, which was named Dentsu Razorfish and became an independent entity following the acquisition of a large part of Publicis by the Japanese.

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The factors in favour of a rise in the Publicis share price:

Firstly it should be noted that the Publicis Group holds an advantageous position relating to its activity sector on an international level. In fact, Publicis actually holds third position worldwide in advertising worldwide after its two major competitors WWP and Omnicom.

The analysts also point out the new organisation implemented by the Publicis Group as a highly positive point following the acquisition of the American company Sapient.  In fact, this new organisation offers an advantageous balance between the analogical activities that currently represents 45% of its total activities and relates to classic advertising activities, and its digital activities.  The latter sector is experiencing a boom in growth at present and generates an increasing part of the company’s income.

The Publicis Group also benefits from an advantageous position in the American market. In fact, it achieves over 53% of its income from North America. The European position of this company is also positive where it obtains 29% of its income. These two markets are highly important as they generate advantageous margins. It should be noted that the third largest market for this group is Pacific Asia which generates 11% of the company’s income.

We should also draw your attention to the advantages offered by the superior management and administration of this company, admired by a number of professionals and investors, which offers a strategic vision that has already proved its merits.

And, to conclude, the shareholders and stock market investors also highly appreciate the stable and healthy financial situation of this company despite its rise in debt.  The company’s dividend has also increased over the last few years which is a positive factor. We also note that the operating margin is demonstrating a rise pointing to a recovery to the levels observed a decade ago.

The factors in favour of a drop in the Publicis share price:

As you may have noticed from reading the earlier points, the Publicis Group benefits from numerous advantages relating to its future growth. It can therefore be tempting to launch directly into trading and take a long term rising position on this asset using CFDs through your online broker. But before doing so we recommend you take the time to consider the disadvantages of the Publicis Company and its share price and evaluate the following points that could negatively influence this rise.

Firstly we note that the advertising sector has experienced a significant recession over recent years, notably in the mature countries. However, in the emerging countries we note a high volatility which carries a certain risk factor. For example we note a clear slowdown in the Publicis Group’s activities in the United Kingdom and United States which clearly denotes this situation.

The Publicis Group has also registered recurrent budget losses that weigh systematically on the future years activities and these should be taken into account.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Quelles sont les principales filiales détenues par le groupe Publicis ?

Le groupe Publicis exerce ses activités au travers de plusieurs filiales dans des segments différents. On retrouve ainsi pour les réseaux internationaux les filiales Leo Burnett Worldwide, Publicis Worldwide et Saatchi & Saatchi Worldwide. Pour les médias, on trouve les filiales Starcom MediaVestGroup, ZenithOptimedia et Médias & Régies Europe. Pour les agences spécialisées en marketing, on retrouve les filiales Digitas, Razorfish, MSLGroup, Publicis Net, Publicis Modem, Ysssup Research. Et en ce qui concerne l’informatique, on retrouve la société Technology.

Comment le capital du groupe Publicis est-il réparti ?

Actuellement, le capital du groupe Publicis est réparti entre plusieurs grands actionnaires dont Elisabeth Badinter avec 7.10% des parts, Harris Associates avec 5.45% des parts, Dnca Finance avec 2.68%, Fil Investment Advisors avec 2.49%, The Vanguard Group avec 2.46%, Maurice Lévy avec 1.95%, Publicis Groupe en autocontrôle avec 1.84%, Norges Bank Investment Management avec 1.75%, Invesco Asset Management avec 1.50% et Schroder Investment Management avec 1.46%.

Comment connaitre les futures tendances de l’action Publicis ?

Pour savoir quelles seront les prochaines tendances de l’action Publicis, même s’il est impossible d’avoir des certitudes à cet égard, vous devez réaliser des analyses précises de son cours en utilisant conjointement les signaux obtenus par le biais de l’analyse technique et ceux obtenus par le biais de l’analyse fondamentale. Vous pouvez également réaliser une analyse de la concurrence et une analyse financière de cette société.

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