WPP PLC-SPONSORED ADR (WPP) Fundamental Analysis & Valuation
NYSE:WPP • US92937A1025
Current stock price
18.13 USD
+0.51 (+2.89%)
At close:
18.13 USD
0 (0%)
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This WPP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. WPP Profitability Analysis
1.1 Basic Checks
- WPP had positive earnings in the past year.
- In the past year WPP had a positive cash flow from operations.
- 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
- WPP has a better Return On Assets (-0.89%) than 65.93% of its industry peers.
- WPP has a Return On Equity of -8.46%. This is comparable to the rest of the industry: WPP outperforms 54.95% of its industry peers.
- The Return On Invested Capital of WPP (3.27%) is better than 60.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WPP is in line with the industry average of 7.76%.
| Industry Rank | Sector 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)5.81%
ROIC(5y)6.99%
1.3 Margins
- WPP has a Operating Margin (2.82%) which is comparable to the rest of the industry.
- WPP's Operating Margin has declined in the last couple of years.
- WPP's Gross Margin of 15.84% is on the low side compared to the rest of the industry. WPP is outperformed by 74.73% 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 Rank | Sector 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%
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.
- WPP has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.73, we must say that WPP is in the distress zone and has some risk of bankruptcy.
- WPP's Altman-Z score of 0.73 is in line compared to the rest of the industry. WPP outperforms 50.55% of its industry peers.
- 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.
- WPP has a better Debt to FCF ratio (12.70) than 67.03% of its industry peers.
- A Debt/Equity ratio of 2.28 is on the high side and indicates that WPP has dependencies on debt financing.
- WPP has a Debt to Equity ratio of 2.28. This is in the lower half of the industry: WPP underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.28 | ||
| Debt/FCF | 12.7 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.52
WACC6.31%
2.3 Liquidity
- WPP has a Current Ratio of 0.89. This is a bad value and indicates that WPP is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.89, WPP is doing worse than 65.93% of the companies in the same industry.
- A Quick Ratio of 0.88 indicates that WPP may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, WPP is doing worse than 62.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.88 |
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.
- WPP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
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 10.67% yearly.
- Based on estimates for the next years, WPP will show a small growth in Revenue. The Revenue will grow by 4.44% on average per year.
EPS Next Y-14.4%
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
EPS Next 5Y10.67%
Revenue Next Year-10.37%
Revenue Next 2Y-3.3%
Revenue Next 3Y-2.17%
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.
4. WPP Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 4.21, the valuation of WPP can be described as very cheap.
- Based on the Price/Earnings ratio, WPP is valued cheaper than 96.70% of the companies in the same industry.
- WPP is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
- WPP is valuated cheaply with a Price/Forward Earnings ratio of 4.91.
- Based on the Price/Forward Earnings ratio, WPP is valued cheaper than 89.01% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.91 |
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 73.63% 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 91.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.4 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.96
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
5. WPP Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.70%, WPP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.07, WPP pays a better dividend. On top of this WPP pays more dividend than 95.60% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
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.
Dividend Growth(5Y)26.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- WPP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 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-4.71%
EPS Next 3Y-0.7%
WPP Fundamentals: All Metrics, Ratios and Statistics
18.13
+0.51 (+2.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-28 2026-04-28
Earnings (Next)N/A N/A
Inst Owners80.69%
Inst Owner Change0.12%
Ins Owners0.04%
Ins Owner Change0%
Market Cap3.91B
Revenue(TTM)13.55B
Net Income(TTM)-215.00M
Analysts52.17
Price Target20.56 (13.4%)
Short Float %1.63%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.7% |
Yearly Dividend2.13
Dividend Growth(5Y)26.46%
DP-159.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-05 2026-06-05 (0.507862)
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)-14.73%
PT rev (3m)-15.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.42%
EPS NY rev (3m)-11.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-6.76%
Revenue NY rev (3m)-9.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.21 | ||
| Fwd PE | 4.91 | ||
| P/S | 0.21 | ||
| P/FCF | 5.4 | ||
| P/OCF | 4.01 | ||
| P/B | 1.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.4 |
EPS(TTM)4.31
EY23.77%
EPS(NY)3.69
Fwd EY20.37%
FCF(TTM)3.36
FCFY18.53%
OCF(TTM)4.52
OCFY24.94%
SpS84.61
BVpS15.86
TBVpS-32.1
PEG (NY)N/A
PEG (5Y)2.96
Graham Number39.2185 (116.32%)
Profitability
| Industry Rank | Sector 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)5.81%
ROIC(5y)6.99%
ROICexc(3y)7.78%
ROICexc(5y)9.49%
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-27.42%
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 Rank | Sector 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 | 0.88 | ||
| Altman-Z | 0.73 |
F-Score4
WACC6.31%
ROIC/WACC0.52
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-14.4%
EPS Next 2Y-4.71%
EPS Next 3Y-0.7%
EPS Next 5Y10.67%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-2.07%
Revenue growth 5Y2.45%
Sales Q2Q%-8.34%
Revenue Next Year-10.37%
Revenue Next 2Y-3.3%
Revenue Next 3Y-2.17%
Revenue Next 5Y4.44%
EBIT growth 1Y-71.17%
EBIT growth 3Y-34.48%
EBIT growth 5YN/A
EBIT Next Year24.69%
EBIT Next 3Y9.88%
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.
How profitable is WPP PLC-SPONSORED ADR (WPP) stock?
WPP PLC-SPONSORED ADR (WPP) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for WPP stock?
The Price/Earnings (PE) ratio for WPP PLC-SPONSORED ADR (WPP) is 4.21 and the Price/Book (PB) ratio is 1.14.
How sustainable is the dividend of WPP PLC-SPONSORED ADR (WPP) stock?
The dividend rating of WPP PLC-SPONSORED ADR (WPP) is 6 / 10 and the dividend payout ratio is -159.53%.