WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - NYSE:WPP - US92937A1025 - ADR
19.51 USD
-3.92 (-16.73%)
20 USD
+0.49 (+2.51%)
WPP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 94 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.
In the past 5 years WPP always reported a positive cash flow from operatings.
1.2 Ratios
WPP's Return On Assets of 1.63% is fine compared to the rest of the industry. WPP outperforms 67.02% of its industry peers.
WPP's Return On Equity of 12.04% is fine compared to the rest of the industry. WPP outperforms 76.60% of its industry peers.
WPP has a better Return On Invested Capital (6.69%) than 72.34% 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 8.50%.
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's Profit Margin of 2.69% is fine compared to the rest of the industry. WPP outperforms 63.83% of its industry peers.
In the last couple of years the Profit Margin of WPP has declined.
WPP has a Operating Margin (7.92%) which is in line with its industry peers.
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 78.72% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WPP is creating some value.
WPP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WPP has been reduced compared to 5 years ago.
Compared to 1 year ago, WPP has an improved debt to assets ratio.
2.2 Solvency
WPP has an Altman-Z score of 0.94. This is a bad value and indicates that WPP is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WPP (0.94) is comparable to the rest of the industry.
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 60.64% 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 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.94 |
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 70.21% of its industry peers.
A Quick Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, WPP is not doing good in the industry: 69.15% of the companies in the same industry are doing better.
| 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.
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
The Earnings Per Share is expected to grow by 0.06% on average over the next years.
The Revenue is expected to grow by 2.31% on average over the next years.
EPS Next Y-21.55%
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
EPS Next 5Y0.06%
Revenue Next Year-6%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.34%
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
With a Price/Earnings ratio of 3.77, 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 92.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of WPP to the average of the S&P500 Index (26.76), we can say WPP is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.16, the valuation of WPP can be described as very cheap.
87.23% of the companies in the same industry are more expensive than WPP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. WPP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 4.16 |
4.2 Price Multiples
WPP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPP is cheaper than 82.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WPP is valued cheaper than 82.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as WPP's earnings are expected to decrease with -5.47% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
5. Dividend
5.1 Amount
WPP has a Yearly Dividend Yield of 8.79%, which is a nice return.
In the last 3 months the price of WPP has falen by -27.15%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.39, WPP pays a better dividend. On top of this WPP pays more dividend than 97.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.79% |
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.
DP111.55%
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
19.51
-3.92 (-16.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change-0.19%
Ins Owners0.01%
Ins Owner Change0%
Market Cap4.21B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target31.9 (63.51%)
Short Float %0.97%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.79% |
Yearly Dividend2.66
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)-2.73%
PT rev (3m)-10.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-21.77%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.77 | ||
| Fwd PE | 4.16 | ||
| P/S | 0.22 | ||
| P/FCF | 4.58 | ||
| P/OCF | 3.49 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.58 |
EPS(TTM)5.18
EY26.55%
EPS(NY)4.69
Fwd EY24.02%
FCF(TTM)4.26
FCFY21.81%
OCF(TTM)5.58
OCFY28.63%
SpS86.82
BVpS19.38
TBVpS-30.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.52
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
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-21.55%
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
EPS Next 5Y0.06%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
Revenue Next Year-6%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.34%
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 5Y5.43%
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%.