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

NYSE:WPP • US92937A1025

Current stock price

15.5481 USD
+0.05 (+0.31%)
Last:

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

  • In the past year WPP was profitable.
  • WPP had a positive operating cash flow in the past year.
  • Of the past 5 years WPP 4 years were profitable.
  • WPP had a positive operating cash flow in each of the past 5 years.
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 65.22% of its industry peers.
  • The Return On Equity of WPP (-8.46%) is comparable to the rest of the industry.
  • WPP has a better Return On Invested Capital (3.27%) than 60.87% of its industry peers.
  • WPP had an Average Return On Invested Capital over the past 3 years of 5.82%. This is in line with the industry average of 6.70%.
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)5.82%
ROIC(5y)7%
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 of 2.82%. This is comparable to the rest of the industry: WPP outperforms 53.26% of its industry peers.
  • In the last couple of years the Operating Margin of WPP has declined.
  • WPP's Gross Margin of 15.84% is on the low side compared to the rest of the industry. WPP is outperformed by 75.00% 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • The debt/assets ratio for WPP is higher compared to a year ago.
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

  • WPP has an Altman-Z score of 0.72. 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 (0.72) which is comparable to the rest of the industry.
  • 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.
  • The Debt to FCF ratio of WPP (12.70) is better than 65.22% of its industry peers.
  • WPP has a Debt/Equity ratio of 2.28. This is a high value indicating a heavy dependency on external financing.
  • WPP's Debt to Equity ratio of 2.28 is on the low side compared to the rest of the industry. WPP is outperformed by 69.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.28
Debt/FCF 12.7
Altman-Z 0.72
ROIC/WACC0.53
WACC6.22%
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

  • A Current Ratio of 0.89 indicates that WPP may have some problems paying its short term obligations.
  • With a Current ratio value of 0.89, WPP is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.89 indicates that WPP may have some problems paying its short term obligations.
  • WPP has a Quick ratio of 0.89. This is in the lower half of the industry: WPP underperforms 63.04% of its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.89
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • Measured over the past years, WPP shows a small growth in Revenue. The Revenue has been growing by 2.45% on average per year.
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 10.87% yearly.
  • The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-9.47%
EPS Next 2Y-0.91%
EPS Next 3Y0.04%
EPS Next 5Y10.87%
Revenue Next Year-3.87%
Revenue Next 2Y-0.75%
Revenue Next 3Y-3.85%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6

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Find the best growth stocksShow best growing peers

7

4. WPP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 3.62, the valuation of WPP can be described as very cheap.
  • WPP's Price/Earnings ratio is rather cheap when compared to the industry. WPP is cheaper than 97.83% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of WPP to the average of the S&P500 Index (25.61), we can say WPP is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 4.00, the valuation of WPP can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, WPP is valued cheaper than 91.30% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of WPP to the average of the S&P500 Index (22.79), we can say WPP is valued rather cheaply.
Industry RankSector Rank
PE 3.62
Fwd PE 4
WPP Price Earnings VS Forward Price EarningsWPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 75.00% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 89.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.66
EV/EBITDA 8
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)2.55
EPS Next 2Y-0.91%
EPS Next 3Y0.04%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. WPP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 9.20%, WPP is a good candidate for dividend investing.
  • The stock price of WPP dropped by -30.93% 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 1.21, WPP pays a better dividend. On top of this WPP pays more dividend than 98.91% 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 1.89.
Industry RankSector Rank
Dividend Yield 9.2%

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.
  • WPP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)26.46%
Div Incr Years3
Div Non Decr Years3
WPP Yearly Dividends per shareWPP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

  • The earnings of WPP are negative and hence is the payout ratio. WPP will probably not be able to sustain this dividend level.
  • 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-0.91%
EPS Next 3Y0.04%
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

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Find the best dividend stocksShow peers with best dividend

WPP Fundamentals: All Metrics, Ratios and Statistics

WPP PLC-SPONSORED ADR

NYSE:WPP (3/26/2026, 3:08:42 PM)

15.5481

+0.05 (+0.31%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)02-26
Earnings (Next)N/A
Inst Owners83.94%
Inst Owner Change4.9%
Ins Owners0.04%
Ins Owner Change0%
Market Cap3.35B
Revenue(TTM)13.55B
Net Income(TTM)-215.00M
Analysts52.17
Price Target25.15 (61.76%)
Short Float %1.69%
Short Ratio5.92
Dividend
Industry RankSector Rank
Dividend Yield 9.2%
Yearly Dividend2.12
Dividend Growth(5Y)26.46%
DP-159.53%
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)-0.38%
PT rev (3m)-1.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.77%
EPS NY rev (3m)-8.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-3.11%
Valuation
Industry RankSector Rank
PE 3.62
Fwd PE 4
P/S 0.18
P/FCF 4.66
P/OCF 3.46
P/B 0.99
P/tB N/A
EV/EBITDA 8
EPS(TTM)4.29
EY27.59%
EPS(NY)3.88
Fwd EY24.97%
FCF(TTM)3.34
FCFY21.48%
OCF(TTM)4.49
OCFY28.9%
SpS84.11
BVpS15.77
TBVpS-31.9
PEG (NY)N/A
PEG (5Y)2.55
Graham Number39.01
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)5.82%
ROIC(5y)7%
ROICexc(3y)7.82%
ROICexc(5y)9.52%
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-26.8%
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 0.89
Altman-Z 0.72
F-Score4
WACC6.22%
ROIC/WACC0.53
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-9.47%
EPS Next 2Y-0.91%
EPS Next 3Y0.04%
EPS Next 5Y10.87%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-2.07%
Revenue growth 5Y2.45%
Sales Q2Q%-8.34%
Revenue Next Year-3.87%
Revenue Next 2Y-0.75%
Revenue Next 3Y-3.85%
Revenue Next 5Y4.44%
EBIT growth 1Y-71.17%
EBIT growth 3Y-34.48%
EBIT growth 5YN/A
EBIT Next Year26.72%
EBIT Next 3Y9.91%
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.


What is the profitability of WPP stock?

WPP PLC-SPONSORED ADR (WPP) has a profitability rating of 4 / 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 3.62 and the Price/Book (PB) ratio is 0.99.


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 -9.47% in the next year.