WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - NYSE:WPP - US92937A1025 - ADR
20.43 USD
-0.11 (-0.54%)
20.25 USD
-0.18 (-0.88%)
WPP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 96 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
WPP had positive earnings in the past year.
WPP had a positive operating cash flow in the past year.
WPP had positive earnings in 4 of the past 5 years.
WPP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPP has a better Return On Assets (1.63%) than 63.54% of its industry peers.
The Return On Equity of WPP (12.04%) is better than 75.00% of its industry peers.
WPP has a Return On Invested Capital of 6.69%. This is in the better half of the industry: WPP outperforms 72.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WPP is below the industry average of 8.26%.
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 Profit Margin of 2.69%. This is in the better half of the industry: WPP outperforms 62.50% 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 comparable to the rest of the industry.
WPP's Operating Margin has declined in the last couple of years.
The Gross Margin of WPP (15.86%) is worse than 78.13% 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.
Compared to 1 year ago, WPP has more shares outstanding
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 0.93, we must say that WPP is in the distress zone and has some risk of bankruptcy.
WPP has a Altman-Z score (0.93) which is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 9.72, WPP is doing good in the industry, outperforming 60.42% 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.
WPP has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: WPP underperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.93 |
ROIC/WACC1.14
WACC5.87%
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's Current ratio of 0.86 is on the low side compared to the rest of the industry. WPP is outperformed by 67.71% of its industry peers.
A Quick Ratio of 0.86 indicates that WPP may have some problems paying 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 66.67% 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.
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
WPP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.72% yearly.
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-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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.97 indicates a rather cheap valuation of WPP.
Based on the Price/Earnings ratio, WPP is valued cheaply inside the industry as 94.79% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WPP to the average of the S&P500 Index (25.47), we can say WPP is valued rather cheaply.
The Price/Forward Earnings ratio is 4.83, which indicates a rather cheap valuation of WPP.
Based on the Price/Forward Earnings ratio, WPP is valued cheaper than 84.38% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WPP to the average of the S&P500 Index (35.42), we can say WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.97 | ||
| Fwd PE | 4.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPP is valued cheaper than 87.50% 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 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
A cheap valuation may be justified as WPP's earnings are expected to decrease with -8.04% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
5. Dividend
5.1 Amount
WPP has a Yearly Dividend Yield of 8.85%, which is a nice return.
In the last 3 months the price of WPP has falen by -24.58%. 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 4.47, WPP pays a better dividend. On top of this WPP pays more dividend than 98.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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 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.
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-15.08%
EPS Next 3Y-8.04%
20.43
-0.11 (-0.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change-6.62%
Ins Owners0.01%
Ins Owner Change0%
Market Cap4.41B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target31.21 (52.77%)
Short Float %0.89%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.85% |
Yearly Dividend2.63
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)-2.17%
PT rev (3m)-4.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.76%
EPS NY rev (3m)-24.88%
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 | 3.97 | ||
| Fwd PE | 4.83 | ||
| P/S | 0.24 | ||
| P/FCF | 4.83 | ||
| P/OCF | 3.68 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.29 |
EPS(TTM)5.15
EY25.21%
EPS(NY)4.23
Fwd EY20.72%
FCF(TTM)4.23
FCFY20.69%
OCF(TTM)5.55
OCFY27.15%
SpS86.23
BVpS19.24
TBVpS-29.86
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.22
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 | 0.93 |
F-Score6
WACC5.87%
ROIC/WACC1.14
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%.