WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPP - US92937A1025 - ADR
22.91 USD
+0.45 (+2%)
22.91 USD
0 (0%)
Taking everything into account, WPP scores 4 out of 10 in our fundamental rating. WPP was compared to 91 industry peers in the Media industry. WPP has a medium profitability rating, but doesn't score so well on its financial health evaluation. WPP has a bad growth rate and is valued cheaply.
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.
WPP had positive earnings in 4 of the past 5 years.
In the past 5 years WPP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WPP (1.63%) is better than 68.42% of its industry peers.
WPP has a Return On Equity of 12.04%. This is in the better half of the industry: WPP outperforms 80.00% of its industry peers.
The Return On Invested Capital of WPP (6.69%) is better than 78.95% 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 6.93%.
The 3 year average ROIC (5.83%) for WPP is below the current ROIC(6.69%), indicating increased profibility in the last year.
| 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 69.47% of the companies in the same industry.
In the last couple of years the Profit Margin of WPP has declined.
The Operating Margin of WPP (7.92%) is better than 61.05% of its industry peers.
In the last couple of years the Operating Margin of WPP has declined.
WPP has a Gross Margin of 15.86%. This is in the lower half of the industry: WPP underperforms 75.79% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WPP is creating some value.
The number of shares outstanding for WPP has been increased compared to 1 year ago.
The number of shares outstanding for WPP has been reduced compared to 5 years ago.
The debt/assets ratio for WPP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that WPP is in the distress zone and has some risk of bankruptcy.
WPP has a Altman-Z score (0.94) which is in line with its industry peers.
The Debt to FCF ratio of WPP is 9.72, which is on the high side as it means it would take WPP, 9.72 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WPP (9.72) is better than 64.21% of its industry peers.
WPP has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WPP (1.85) is worse than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.11
WACC6.04%
2.3 Liquidity
WPP has a Current Ratio of 0.86. This is a bad value and indicates that WPP is not financially healthy enough and could expect problems in meeting its short term obligations.
WPP has a Current ratio of 0.86. This is in the lower half of the industry: WPP underperforms 66.32% of its industry peers.
WPP has a Quick Ratio of 0.86. This is a bad value and indicates that WPP is not financially healthy enough and could expect problems in meeting its short term obligations.
WPP's Quick ratio of 0.86 is on the low side compared to the rest of the industry. WPP is outperformed by 64.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for WPP have decreased strongly by -15.50% in the last year.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
WPP shows a decrease in Revenue. In the last year, the revenue decreased by -4.54%.
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
Based on estimates for the next years, WPP will show a decrease in Earnings Per Share. The EPS will decrease by -0.11% on average per year.
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-0.11%
Revenue Next Year-6.05%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.28%
Revenue Next 5Y2.31%
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.
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 4.34.
Compared to the rest of the industry, the Price/Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 96.84% of the companies listed in the same industry.
WPP is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.43 indicates a rather cheap valuation of WPP.
Based on the Price/Forward Earnings ratio, WPP is valued cheaply inside the industry as 87.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 5.43 |
4.2 Price Multiples
88.42% of the companies in the same industry are more expensive than WPP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WPP is valued cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.28 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
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
WPP has a Yearly Dividend Yield of 9.45%, which is a nice return.
WPP's Dividend Yield is rather good when compared to the industry average which is at 1.28. WPP pays more dividend than 98.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.45% |
5.2 History
The dividend of WPP decreases each year by -7.91%.
WPP has paid a dividend for at least 10 years, which is 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
WPP pays out 111.55% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of WPP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP111.55%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
22.91
+0.45 (+2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners82.77%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change0%
Market Cap4.94B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target25.4 (10.87%)
Short Float %1.05%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.45% |
Yearly Dividend2.69
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)-4.19%
PT rev (3m)-20.37%
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 | 4.34 | ||
| Fwd PE | 5.43 | ||
| P/S | 0.26 | ||
| P/FCF | 5.28 | ||
| P/OCF | 4.02 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.48 |
EPS(TTM)5.28
EY23.05%
EPS(NY)4.22
Fwd EY18.4%
FCF(TTM)4.34
FCFY18.93%
OCF(TTM)5.69
OCFY24.84%
SpS88.48
BVpS19.75
TBVpS-30.64
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.44
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 | 0.94 |
F-Score6
WACC6.04%
ROIC/WACC1.11
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-0.11%
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 7 / 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 5 / 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 4.34 and the Price/Book (PB) ratio is 1.16.
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.