WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - NYSE:WPP - US92937A1025 - ADR
19.49 USD
-0.41 (-2.06%)
18.96 USD
-0.53 (-2.72%)
We assign a fundamental rating of 4 out of 10 to WPP. WPP was compared to 95 industry peers in the Media industry. WPP has a medium profitability rating, but doesn't score so well on its financial health evaluation. WPP is valued quite cheap, but it does not seem to be growing.
1. Profitability
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.
In the past 5 years WPP always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 1.63%, WPP is doing good in the industry, outperforming 65.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.04%, WPP is in the better half of the industry, outperforming 76.84% of the companies in the same industry.
WPP has a better Return On Invested Capital (6.69%) than 72.63% of its industry peers.
WPP had an Average Return On Invested Capital over the past 3 years of 5.83%. This is below the industry average of 8.51%.
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 63.16% of the companies in the same industry.
WPP's Profit Margin has declined in the last couple of years.
The Operating Margin of WPP (7.92%) is comparable to the rest of the industry.
WPP's Operating Margin has declined in the last couple of years.
WPP has a Gross Margin of 15.86%. This is in the lower half of the industry: WPP underperforms 77.89% 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
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.
Compared to 5 years ago, WPP has less shares outstanding
WPP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that WPP is in the distress zone and has some risk of bankruptcy.
WPP's Altman-Z score of 0.92 is in line compared to the rest of the industry. WPP outperforms 51.58% of 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.
Looking at the Debt to FCF ratio, with a value of 9.72, WPP is in line with its industry, outperforming 60.00% of the companies in the same industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that WPP has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.85, WPP is doing worse than 64.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.92 |
ROIC/WACC1.15
WACC5.81%
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 68.42% 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 67.37% 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.
The Revenue has decreased by -4.54% in the past 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
The Earnings Per Share is expected to decrease by -0.72% on average over the next years.
WPP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.31% yearly.
EPS Next Y-25.28%
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
EPS Next 5Y-0.72%
Revenue Next Year-5.64%
Revenue Next 2Y-4.06%
Revenue Next 3Y-2.07%
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 3.79.
95.79% of the companies in the same industry are more expensive than WPP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.34. WPP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.61 indicates a rather cheap valuation of WPP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.79 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
WPP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPP is cheaper than 86.32% of the companies in the same industry.
WPP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WPP is cheaper than 85.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.61 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
WPP's earnings are expected to decrease with -8.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.85%, WPP is a good candidate for dividend investing.
The stock price of WPP dropped by -23.45% 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 4.42, WPP pays a better dividend. On top of this WPP pays more dividend than 98.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.85% |
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.
WPP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP111.55%
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
19.49
-0.41 (-2.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change1.02%
Ins Owners0.01%
Ins Owner Change0%
Market Cap4.21B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target31 (59.06%)
Short Float %0.97%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.85% |
Yearly Dividend2.62
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)-2.82%
PT rev (3m)-4.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.76%
EPS NY rev (3m)-25.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.79 | ||
| Fwd PE | 4.61 | ||
| P/S | 0.23 | ||
| P/FCF | 4.61 | ||
| P/OCF | 3.51 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.19 |
EPS(TTM)5.14
EY26.37%
EPS(NY)4.23
Fwd EY21.71%
FCF(TTM)4.23
FCFY21.69%
OCF(TTM)5.55
OCFY28.46%
SpS86.21
BVpS19.24
TBVpS-29.86
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.17
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 | 0.92 |
F-Score6
WACC5.81%
ROIC/WACC1.15
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-25.28%
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
EPS Next 5Y-0.72%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
Revenue Next Year-5.64%
Revenue Next 2Y-4.06%
Revenue Next 3Y-2.07%
Revenue Next 5Y2.31%
EBIT growth 1Y73.33%
EBIT growth 3Y2.54%
EBIT growth 5Y0.45%
EBIT Next Year11.36%
EBIT Next 3Y4.85%
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 of WPP PLC-SPONSORED ADR (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.
Can you provide the financial health for WPP stock?
The financial health rating of WPP PLC-SPONSORED ADR (WPP) is 2 / 10.
Is the dividend of WPP PLC-SPONSORED ADR sustainable?
The dividend rating of WPP PLC-SPONSORED ADR (WPP) is 5 / 10 and the dividend payout ratio is 111.55%.