WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPP - US92937A1025 - ADR
21.22 USD
-0.28 (-1.3%)
21.22 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WPP. WPP was compared to 93 industry peers in the Media industry. There are concerns on the financial health of WPP while its profitability can be described as average. WPP is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year WPP was profitable.
- In the past year WPP had a positive cash flow from operations.
- Of the past 5 years WPP 4 years were profitable.
- WPP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 1.63%, WPP is doing good in the industry, outperforming 69.89% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.04%, WPP belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- WPP has a better Return On Invested Capital (6.69%) than 79.57% of its industry peers.
- WPP had an Average Return On Invested Capital over the past 3 years of 5.83%. This is in line with the industry average of 7.08%.
- The last Return On Invested Capital (6.69%) for WPP is above the 3 year average (5.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 12.04% | ||
| ROIC | 6.69% |
ROA(3y)1.64%
ROA(5y)-0.2%
ROE(3y)12.47%
ROE(5y)-1.53%
ROIC(3y)5.83%
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 2.69%, WPP is doing good in the industry, outperforming 70.97% of the companies in the same industry.
- In the last couple of years the Profit Margin of WPP has declined.
- With a decent Operating Margin value of 7.92%, WPP is doing good in the industry, outperforming 62.37% of the companies in the same industry.
- WPP's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 15.86%, WPP is doing worse than 74.19% of the companies in the same industry.
- WPP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 2.69% | ||
| GM | 15.86% |
OM growth 3Y-2.17%
OM growth 5Y-1.7%
PM growth 3Y-9.63%
PM growth 5Y-10.43%
GM growth 3Y-1.15%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
- WPP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for WPP has been increased compared to 1 year ago.
- WPP has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, WPP has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.93, we must say that WPP is in the distress zone and has some risk of bankruptcy.
- WPP has a Altman-Z score (0.93) which is in line with its industry peers.
- WPP has a debt to FCF ratio of 9.72. This is a negative value and a sign of low solvency as WPP would need 9.72 years to pay back of all of its debts.
- WPP has a better Debt to FCF ratio (9.72) than 65.59% of its industry peers.
- A Debt/Equity ratio of 1.85 is on the high side and indicates that WPP has dependencies on debt financing.
- WPP has a worse Debt to Equity ratio (1.85) than 62.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.93 |
ROIC/WACC1.13
WACC5.93%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
- With a Current ratio value of 0.86, WPP is not doing good in the industry: 65.59% of the companies in the same industry are doing better.
- A Quick Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.86, WPP is doing worse than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- WPP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.50%.
- WPP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
- Looking at the last year, WPP shows a decrease in Revenue. The Revenue has decreased by -4.54% in the last year.
- WPP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.18% yearly.
EPS 1Y (TTM)-15.5%
EPS 3Y4%
EPS 5Y-0.97%
EPS Q2Q%-35.28%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
3.2 Future
- WPP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.60% yearly.
- Based on estimates for the next years, WPP will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y-27.27%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
EPS Next 5Y-0.6%
Revenue Next Year-6.05%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.28%
Revenue Next 5Y2.31%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- WPP is valuated cheaply with a Price/Earnings ratio of 4.03.
- Based on the Price/Earnings ratio, WPP is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
- WPP is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- WPP is valuated cheaply with a Price/Forward Earnings ratio of 5.05.
- Based on the Price/Forward Earnings ratio, WPP is valued cheaply inside the industry as 89.25% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. WPP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.03 | ||
| Fwd PE | 5.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WPP is valued cheaply inside the industry as 89.25% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WPP is valued cheaply inside the industry as 84.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.91 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
- WPP has a very decent profitability rating, which may justify a higher PE ratio.
- WPP's earnings are expected to decrease with -8.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 9.20%, WPP is a good candidate for dividend investing.
- WPP's Dividend Yield is rather good when compared to the industry average which is at 1.26. WPP pays more dividend than 98.92% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
5.2 History
- The dividend of WPP decreases each year by -7.91%.
- WPP has been paying a dividend for at least 10 years, so it has a reliable track record.
- WPP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.91%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 111.55% of the earnings are spent on dividend by WPP. This is not a sustainable payout ratio.
- WPP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP111.55%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
21.22
-0.28 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)10-30 2025-10-30
Earnings (Next)N/A N/A
Inst Owners82.77%
Inst Owner Change-0.45%
Ins Owners0.03%
Ins Owner Change0%
Market Cap4.58B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target25.51 (20.22%)
Short Float %1.05%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend2.68
Dividend Growth(5Y)-7.91%
DP111.55%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-0.51%
PT rev (3m)-20.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-7.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.03 | ||
| Fwd PE | 5.05 | ||
| P/S | 0.24 | ||
| P/FCF | 4.91 | ||
| P/OCF | 3.74 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.32 |
EPS(TTM)5.26
EY24.79%
EPS(NY)4.2
Fwd EY19.79%
FCF(TTM)4.32
FCFY20.36%
OCF(TTM)5.67
OCFY26.72%
SpS88.14
BVpS19.67
TBVpS-30.53
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 12.04% | ||
| ROCE | 11.66% | ||
| ROIC | 6.69% | ||
| ROICexc | 7.82% | ||
| ROICexgc | 168.96% | ||
| OM | 7.92% | ||
| PM (TTM) | 2.69% | ||
| GM | 15.86% | ||
| FCFM | 4.9% |
ROA(3y)1.64%
ROA(5y)-0.2%
ROE(3y)12.47%
ROE(5y)-1.53%
ROIC(3y)5.83%
ROIC(5y)N/A
ROICexc(3y)7.61%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.2%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y3.97%
ROICexc growth 5Y-10.52%
OM growth 3Y-2.17%
OM growth 5Y-1.7%
PM growth 3Y-9.63%
PM growth 5Y-10.43%
GM growth 3Y-1.15%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 46.47% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 2.79 | ||
| Cash Conversion | 57.36% | ||
| Profit Quality | 182.42% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 0.93 |
F-Score6
WACC5.93%
ROIC/WACC1.13
Cap/Depr(3y)36.59%
Cap/Depr(5y)41.42%
Cap/Sales(3y)1.54%
Cap/Sales(5y)1.83%
Profit Quality(3y)403.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.5%
EPS 3Y4%
EPS 5Y-0.97%
EPS Q2Q%-35.28%
EPS Next Y-27.27%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
EPS Next 5Y-0.6%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
Revenue Next Year-6.05%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.28%
Revenue Next 5Y2.31%
EBIT growth 1Y73.33%
EBIT growth 3Y2.54%
EBIT growth 5Y0.45%
EBIT Next Year5.15%
EBIT Next 3Y1.73%
EBIT Next 5Y6%
FCF growth 1Y-36.73%
FCF growth 3Y-12.34%
FCF growth 5Y-4.25%
OCF growth 1Y-30.31%
OCF growth 3Y-11.52%
OCF growth 5Y-5.32%
WPP PLC-SPONSORED ADR / WPP 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 8 / 10 to WPP PLC-SPONSORED ADR (WPP). This can be considered as Undervalued.
What is the profitability of WPP stock?
WPP PLC-SPONSORED ADR (WPP) has a profitability rating of 6 / 10.
What are the PE and PB ratios of WPP PLC-SPONSORED ADR (WPP) stock?
The Price/Earnings (PE) ratio for WPP PLC-SPONSORED ADR (WPP) is 4.03 and the Price/Book (PB) ratio is 1.08.
Can you provide the expected EPS growth for WPP stock?
The Earnings per Share (EPS) of WPP PLC-SPONSORED ADR (WPP) is expected to decline by -27.27% in the next year.