WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPP - US92937A1025 - ADR
19.31 USD
+0.42 (+2.22%)
19.31 USD
0 (0%)
Overall WPP gets a fundamental rating of 4 out of 10. We evaluated WPP against 98 industry peers in the Media industry. While WPP is still in line with the averages on profitability rating, there are concerns on its financial health. WPP has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
WPP had positive earnings in the past year.
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 has a Return On Assets of 1.63%. This is in the better half of the industry: WPP outperforms 63.27% of its industry peers.
Looking at the Return On Equity, with a value of 12.04%, WPP is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
The Return On Invested Capital of WPP (6.69%) is better than 76.53% 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 7.98%.
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 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of WPP has declined.
WPP's Operating Margin of 7.92% is in line compared to the rest of the industry. WPP outperforms 59.18% of its industry peers.
In the last couple of years the Operating Margin of WPP has declined.
WPP's Gross Margin of 15.86% is on the low side compared to the rest of the industry. WPP is outperformed by 78.57% of its industry peers.
In the last couple of years the Gross Margin of WPP has declined.
| 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.
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.
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 51.02% of its industry peers.
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 better Debt to FCF ratio (9.72) than 64.29% 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 has a worse Debt to Equity ratio (1.85) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.92 |
ROIC/WACC1.15
WACC5.8%
2.3 Liquidity
A Current Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, WPP is doing worse than 66.33% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
WPP has a Quick ratio of 0.86. This is in the lower half of the industry: WPP underperforms 65.31% 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.
WPP shows a decrease in Revenue. In the last year, the revenue decreased by -4.54%.
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
Based on estimates for the next years, WPP will show a decrease in Earnings Per Share. The EPS will decrease by -0.11% on average per year.
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-0.11%
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
With a Price/Earnings ratio of 3.70, the valuation of WPP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 95.92% of the companies listed in the same industry.
WPP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
A Price/Forward Earnings ratio of 4.50 indicates a rather cheap valuation of WPP.
WPP's Price/Forward Earnings ratio is rather cheap when compared to the industry. WPP is cheaper than 90.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WPP to the average of the S&P500 Index (35.40), we can say WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | 4.5 |
4.2 Price Multiples
WPP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPP is cheaper than 87.76% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than WPP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.5 | ||
| EV/EBITDA | 5.1 |
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
WPP has a Yearly Dividend Yield of 8.85%, which is a nice return.
The stock price of WPP dropped by -28.48% 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 4.50, WPP pays a better dividend. On top of this WPP pays more dividend than 98.98% 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 2.32.
| 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.
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%
19.31
+0.42 (+2.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners76.2%
Inst Owner Change-6.6%
Ins Owners0.01%
Ins Owner Change0%
Market Cap4.17B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target26.51 (37.29%)
Short Float %0.92%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.85% |
Yearly Dividend2.64
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)-16.89%
PT rev (3m)-19.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.76%
EPS NY rev (3m)-5.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.7 | ||
| Fwd PE | 4.5 | ||
| P/S | 0.22 | ||
| P/FCF | 4.5 | ||
| P/OCF | 3.43 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.1 |
EPS(TTM)5.22
EY27.03%
EPS(NY)4.29
Fwd EY22.23%
FCF(TTM)4.29
FCFY22.2%
OCF(TTM)5.63
OCFY29.14%
SpS87.46
BVpS19.52
TBVpS-30.29
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.88
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
WACC5.8%
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-0.11%
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%.