WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - NYSE:WPP - US92937A1025 - ADR
24.16 USD
-1.59 (-6.17%)
WPP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Media industry. There are concerns on the financial health of WPP while its profitability can be described as average. 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.
Each year in the past 5 years WPP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.63%, WPP is in the better half of the industry, outperforming 67.68% of the companies in the same industry.
With a decent Return On Equity value of 12.04%, WPP is doing good in the industry, outperforming 76.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.69%, WPP is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WPP is below the industry average of 8.87%.
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
WPP has a better Profit Margin (2.69%) than 63.64% of its industry peers.
In the last couple of years the Profit Margin of WPP has declined.
WPP's Operating Margin of 7.92% is in line compared to the rest of the industry. WPP outperforms 57.58% of its industry peers.
In the last couple of years the Operating Margin of WPP has declined.
WPP's Gross Margin of 15.86% is on the low side compared to the rest of the industry. WPP is outperformed by 78.79% of its industry peers.
In the last couple of years the Gross Margin of WPP has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WPP is still creating some value.
WPP has more shares outstanding than it did 1 year ago.
WPP has less shares outstanding than it did 5 years ago.
WPP has a better debt/assets ratio than last year.
2.2 Solvency
WPP has an Altman-Z score of 0.95. This is a bad value and indicates that WPP is not financially healthy and even has some risk of bankruptcy.
WPP has a Altman-Z score (0.95) 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 Debt to FCF ratio of 9.72. This is in the better half of the industry: WPP outperforms 62.63% 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's Debt to Equity ratio of 1.85 is on the low side compared to the rest of the industry. WPP is outperformed by 65.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.09
WACC6.16%
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.
The Current ratio of WPP (0.86) is worse than 70.71% of its industry peers.
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 69.70% 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%.
Measured over the past years, WPP shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.97% on average per year.
Looking at the last year, WPP shows a decrease in Revenue. The Revenue has decreased by -4.54% in the last year.
The Revenue has been growing slightly by 2.18% on average over the past years.
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 -0.02% 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-20.63%
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%
EPS Next 5Y-0.02%
Revenue Next Year-4.6%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.36%
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 4.52.
91.92% of the companies in the same industry are more expensive than WPP, based on the Price/Earnings ratio.
WPP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
WPP is valuated cheaply with a Price/Forward Earnings ratio of 4.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 88.89% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WPP to the average of the S&P500 Index (22.88), we can say WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 4.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 84.85% 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 85.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.51 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
A cheap valuation may be justified as WPP's earnings are expected to decrease with -5.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.03%, WPP is a good candidate for dividend investing.
The stock price of WPP dropped by -26.53% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.58, WPP pays a better dividend. On top of this WPP pays more dividend than 95.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
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
111.55% of the earnings are spent on dividend by WPP. 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-10.47%
EPS Next 3Y-5.23%
NYSE:WPP (9/19/2025, 3:16:55 PM)
24.16
-1.59 (-6.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners58.98%
Inst Owner Change12.79%
Ins Owners0.2%
Ins Owner Change0%
Market Cap5.21B
Analysts48.57
Price Target32.79 (35.72%)
Short Float %0.68%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.03% |
Yearly Dividend2.71
Dividend Growth(5Y)-7.91%
DP111.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)0.6%
PT rev (3m)-26.36%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.21%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.93%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.52 | ||
| Fwd PE | 4.95 | ||
| P/S | 0.27 | ||
| P/FCF | 5.51 | ||
| P/OCF | 4.2 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.74 |
EPS(TTM)5.34
EY22.1%
EPS(NY)4.88
Fwd EY20.21%
FCF(TTM)4.39
FCFY18.15%
OCF(TTM)5.76
OCFY23.82%
SpS89.46
BVpS19.97
TBVpS-30.98
PEG (NY)N/A
PEG (5Y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.95 |
F-Score6
WACC6.16%
ROIC/WACC1.09
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-20.63%
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%
EPS Next 5Y-0.02%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
Revenue Next Year-4.6%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.36%
Revenue Next 5Y2.31%
EBIT growth 1Y73.33%
EBIT growth 3Y2.54%
EBIT growth 5Y0.45%
EBIT Next Year21.17%
EBIT Next 3Y8.43%
EBIT Next 5Y5.34%
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%