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.

Latest news

PUBLICIS has one of the best results of the CAC40

21/04/2021 - 08h11

Contrary to expectations, the health crisis did not have too much of an impact on Publicis' activities in the first quarter. Even though the group experienced an organic decline in Europe, its results remain positive.

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

The French group Publicis is currently one of the leaders in communication and advertising worldwide. But it is important to know about its major adversaries before launching into trading in this company’s share price. Here therefore is some information about some of the largest companies in this sector:         

WPP

This is currently the largest advertising agency worldwide. Based in London, it employs around 179,000 people in 3,000 offices in 111 countries.

Omnicom

This company is in second position in this sector and exercises a variety of activities including marketing, advertising, public relations, lobbying, interactive communications and media space purchasing.

Other competitors

Publicis is placed in third position worldwide.  However it is important to closely monitor other competitors that lie behind it such as Interpublic, Dentsu, Havas, Alliance Data, Hakuhodo, IBM and Deloitte.


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.
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