WPP PLC-SPONSORED ADR (WPP) Fundamental Analysis & Valuation

NYSE:WPP • US92937A1025

Current stock price

18.13 USD
+0.51 (+2.89%)
At close:
18.13 USD
0 (0%)
After Hours:

This WPP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. WPP Profitability Analysis

1.1 Basic Checks

  • WPP had positive earnings in the past year.
  • In the past year WPP had a positive cash flow from operations.
  • Of the past 5 years WPP 4 years were profitable.
  • In the past 5 years WPP always reported a positive cash flow from operatings.
WPP Yearly Net Income VS EBIT VS OCF VS FCFWPP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B -2B

1.2 Ratios

  • WPP has a better Return On Assets (-0.89%) than 65.93% of its industry peers.
  • WPP has a Return On Equity of -8.46%. This is comparable to the rest of the industry: WPP outperforms 54.95% of its industry peers.
  • The Return On Invested Capital of WPP (3.27%) is better than 60.44% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WPP is in line with the industry average of 7.76%.
Industry RankSector Rank
ROA -0.89%
ROE -8.46%
ROIC 3.27%
ROA(3y)0.55%
ROA(5y)1.26%
ROE(3y)3.47%
ROE(5y)9.32%
ROIC(3y)5.81%
ROIC(5y)6.99%
WPP Yearly ROA, ROE, ROICWPP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • WPP has a Operating Margin (2.82%) which is comparable to the rest of the industry.
  • WPP's Operating Margin has declined in the last couple of years.
  • WPP's Gross Margin of 15.84% is on the low side compared to the rest of the industry. WPP is outperformed by 74.73% of its industry peers.
  • In the last couple of years the Gross Margin of WPP has remained more or less at the same level.
Industry RankSector Rank
OM 2.82%
PM (TTM) N/A
GM 15.84%
OM growth 3Y-33.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.45%
GM growth 5Y-1.16%
WPP Yearly Profit, Operating, Gross MarginsWPP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20

2

2. WPP Health Analysis

2.1 Basic Checks

  • WPP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for WPP remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for WPP has been reduced compared to 5 years ago.
  • WPP has a worse debt/assets ratio than last year.
WPP Yearly Shares OutstandingWPP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
WPP Yearly Total Debt VS Total AssetsWPP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • Based on the Altman-Z score of 0.73, we must say that WPP is in the distress zone and has some risk of bankruptcy.
  • WPP's Altman-Z score of 0.73 is in line compared to the rest of the industry. WPP outperforms 50.55% of its industry peers.
  • The Debt to FCF ratio of WPP is 12.70, which is on the high side as it means it would take WPP, 12.70 years of fcf income to pay off all of its debts.
  • WPP has a better Debt to FCF ratio (12.70) than 67.03% of its industry peers.
  • A Debt/Equity ratio of 2.28 is on the high side and indicates that WPP has dependencies on debt financing.
  • WPP has a Debt to Equity ratio of 2.28. This is in the lower half of the industry: WPP underperforms 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.7
Altman-Z 0.73
ROIC/WACC0.52
WACC6.31%
WPP Yearly LT Debt VS Equity VS FCFWPP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • WPP has a Current Ratio of 0.89. This is a bad value and indicates that WPP is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.89, WPP is doing worse than 65.93% of the companies in the same industry.
  • A Quick Ratio of 0.88 indicates that WPP may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.88, WPP is doing worse than 62.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.88
WPP Yearly Current Assets VS Current LiabilitesWPP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

4

3. WPP Growth Analysis

3.1 Past

  • WPP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.20%.
  • Measured over the past 5 years, WPP shows a small growth in Earnings Per Share. The EPS has been growing by 1.42% on average per year.
  • Looking at the last year, WPP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
  • WPP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
EPS 1Y (TTM)-27.2%
EPS 3Y-13.75%
EPS 5Y1.42%
EPS Q2Q%-22.86%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-2.07%
Revenue growth 5Y2.45%
Sales Q2Q%-8.34%

3.2 Future

  • WPP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.67% yearly.
  • Based on estimates for the next years, WPP will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-14.4%
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
EPS Next 5Y10.67%
Revenue Next Year-10.37%
Revenue Next 2Y-3.3%
Revenue Next 3Y-2.17%
Revenue Next 5Y4.44%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
WPP Yearly Revenue VS EstimatesWPP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
WPP Yearly EPS VS EstimatesWPP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

7

4. WPP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 4.21, the valuation of WPP can be described as very cheap.
  • Based on the Price/Earnings ratio, WPP is valued cheaper than 96.70% of the companies in the same industry.
  • WPP is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
  • WPP is valuated cheaply with a Price/Forward Earnings ratio of 4.91.
  • Based on the Price/Forward Earnings ratio, WPP is valued cheaper than 89.01% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, WPP is valued rather cheaply.
Industry RankSector Rank
PE 4.21
Fwd PE 4.91
WPP Price Earnings VS Forward Price EarningsWPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPP indicates a somewhat cheap valuation: WPP is cheaper than 73.63% of the companies listed in the same industry.
  • WPP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WPP is cheaper than 91.21% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.4
EV/EBITDA 8.4
WPP Per share dataWPP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.96
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%

6

5. WPP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 5.70%, WPP is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.07, WPP pays a better dividend. On top of this WPP pays more dividend than 95.60% of the companies listed in the same industry.
  • WPP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 5.7%

5.2 History

  • On average, the dividend of WPP grows each year by 26.46%, which is quite nice.
  • WPP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)26.46%
Div Incr Years0
Div Non Decr Years0
WPP Yearly Dividends per shareWPP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • WPP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • The dividend of WPP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-159.53%
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
WPP Yearly Income VS Free CF VS DividendWPP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

WPP Fundamentals: All Metrics, Ratios and Statistics

WPP PLC-SPONSORED ADR

NYSE:WPP (4/29/2026, 8:04:00 PM)

After market: 18.13 0 (0%)

18.13

+0.51 (+2.89%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-28
Earnings (Next)N/A
Inst Owners80.69%
Inst Owner Change0.12%
Ins Owners0.04%
Ins Owner Change0%
Market Cap3.91B
Revenue(TTM)13.55B
Net Income(TTM)-215.00M
Analysts52.17
Price Target20.56 (13.4%)
Short Float %1.63%
Short Ratio5.09
Dividend
Industry RankSector Rank
Dividend Yield 5.7%
Yearly Dividend2.13
Dividend Growth(5Y)26.46%
DP-159.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-05
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-14.73%
PT rev (3m)-15.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.42%
EPS NY rev (3m)-11.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.76%
Revenue NY rev (3m)-9.61%
Valuation
Industry RankSector Rank
PE 4.21
Fwd PE 4.91
P/S 0.21
P/FCF 5.4
P/OCF 4.01
P/B 1.14
P/tB N/A
EV/EBITDA 8.4
EPS(TTM)4.31
EY23.77%
EPS(NY)3.69
Fwd EY20.37%
FCF(TTM)3.36
FCFY18.53%
OCF(TTM)4.52
OCFY24.94%
SpS84.61
BVpS15.86
TBVpS-32.1
PEG (NY)N/A
PEG (5Y)2.96
Graham Number39.2185 (116.32%)
Profitability
Industry RankSector Rank
ROA -0.89%
ROE -8.46%
ROCE 4.13%
ROIC 3.27%
ROICexc 4.61%
ROICexgc N/A
OM 2.82%
PM (TTM) N/A
GM 15.84%
FCFM 3.97%
ROA(3y)0.55%
ROA(5y)1.26%
ROE(3y)3.47%
ROE(5y)9.32%
ROIC(3y)5.81%
ROIC(5y)6.99%
ROICexc(3y)7.78%
ROICexc(5y)9.49%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.5%
ROCE(5y)9.11%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-27.42%
ROICexc growth 5YN/A
OM growth 3Y-33.09%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.45%
GM growth 5Y-1.16%
F-Score4
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.7
Debt/EBITDA 6.98
Cap/Depr 41.61%
Cap/Sales 1.37%
Interest Coverage 1.01
Cash Conversion 87.33%
Profit Quality N/A
Current Ratio 0.89
Quick Ratio 0.88
Altman-Z 0.73
F-Score4
WACC6.31%
ROIC/WACC0.52
Cap/Depr(3y)35.96%
Cap/Depr(5y)41.1%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.2%
EPS 3Y-13.75%
EPS 5Y1.42%
EPS Q2Q%-22.86%
EPS Next Y-14.4%
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
EPS Next 5Y10.67%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-2.07%
Revenue growth 5Y2.45%
Sales Q2Q%-8.34%
Revenue Next Year-10.37%
Revenue Next 2Y-3.3%
Revenue Next 3Y-2.17%
Revenue Next 5Y4.44%
EBIT growth 1Y-71.17%
EBIT growth 3Y-34.48%
EBIT growth 5YN/A
EBIT Next Year24.69%
EBIT Next 3Y9.88%
EBIT Next 5Y18.85%
FCF growth 1Y-54.1%
FCF growth 3Y4.05%
FCF growth 5Y-21.3%
OCF growth 1Y-48.58%
OCF growth 3Y1.09%
OCF growth 5Y-18.83%

WPP PLC-SPONSORED ADR / WPP Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for WPP PLC-SPONSORED ADR?

ChartMill assigns a fundamental rating of 4 / 10 to WPP.


What is the valuation status for WPP stock?

ChartMill assigns a valuation rating of 7 / 10 to WPP PLC-SPONSORED ADR (WPP). This can be considered as Undervalued.


How profitable is WPP PLC-SPONSORED ADR (WPP) stock?

WPP PLC-SPONSORED ADR (WPP) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for WPP stock?

The Price/Earnings (PE) ratio for WPP PLC-SPONSORED ADR (WPP) is 4.21 and the Price/Book (PB) ratio is 1.14.


How sustainable is the dividend of WPP PLC-SPONSORED ADR (WPP) stock?

The dividend rating of WPP PLC-SPONSORED ADR (WPP) is 6 / 10 and the dividend payout ratio is -159.53%.