WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPP - US92937A1025 - ADR
21.22 USD
-0.28 (-1.3%)
21.22 USD
0 (0%)
WPP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 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.
- WPP had a positive operating cash flow in the past year.
- 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 better Return On Assets (1.63%) than 69.23% of its industry peers.
- With an excellent Return On Equity value of 12.04%, WPP belongs to the best of the industry, outperforming 80.22% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.69%, WPP is in the better half of the industry, outperforming 79.12% of the companies in the same industry.
- WPP had an Average Return On Invested Capital over the past 3 years of 5.83%. This is in line with the industry average of 7.07%.
- 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
- WPP's Profit Margin of 2.69% is fine compared to the rest of the industry. WPP outperforms 70.33% of its industry peers.
- WPP's Profit Margin has declined in the last couple of years.
- WPP has a better Operating Margin (7.92%) than 61.54% of its industry peers.
- In the last couple of years the Operating Margin of WPP has declined.
- WPP has a Gross Margin of 15.86%. This is in the lower half of the industry: WPP underperforms 75.82% 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.
- WPP has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for WPP has been reduced compared to a year ago.
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 in line with 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.
- WPP has a better Debt to FCF ratio (9.72) than 64.84% of its industry peers.
- WPP has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.85, WPP is not doing good in the industry: 63.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.93 |
ROIC/WACC1.13
WACC5.93%
2.3 Liquidity
- A Current Ratio of 0.86 indicates that WPP may have some problems paying its short term obligations.
- WPP has a worse Current ratio (0.86) than 67.03% of its industry peers.
- 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 65.93% 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.
- Measured over the past years, WPP shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.97% on average per year.
- 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 -0.60% on average per year.
- 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-27.27%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
EPS Next 5Y-0.6%
Revenue Next Year-6.05%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.28%
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
- The Price/Earnings ratio is 4.04, which indicates a rather cheap valuation of WPP.
- Compared to the rest of the industry, the Price/Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 96.70% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.47. WPP is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 5.06 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 89.01% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 5.06 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 89.01% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.92 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
- The decent profitability rating of WPP may justify a higher PE ratio.
- A cheap valuation may be justified as WPP's earnings are expected to decrease with -8.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
5. Dividend
5.1 Amount
- WPP has a Yearly Dividend Yield of 9.20%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.28, WPP pays a better dividend. On top of this WPP pays more dividend than 98.90% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.87, WPP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
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-16.34%
EPS Next 3Y-8.99%
21.22
-0.28 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)10-30 2025-10-30
Earnings (Next)N/A N/A
Inst Owners82.77%
Inst Owner Change0.01%
Ins Owners0.03%
Ins Owner Change0%
Market Cap4.58B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target25.51 (20.22%)
Short Float %1.05%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.2% |
Yearly Dividend2.68
Dividend Growth(5Y)-7.91%
DP111.55%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-0.51%
PT rev (3m)-20.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-7.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.04 | ||
| Fwd PE | 5.06 | ||
| P/S | 0.24 | ||
| P/FCF | 4.92 | ||
| P/OCF | 3.75 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.32 |
EPS(TTM)5.25
EY24.74%
EPS(NY)4.19
Fwd EY19.77%
FCF(TTM)4.32
FCFY20.34%
OCF(TTM)5.66
OCFY26.69%
SpS88.04
BVpS19.65
TBVpS-30.49
PEG (NY)N/A
PEG (5Y)N/A
Graham Number48.18
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
WACC5.93%
ROIC/WACC1.13
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-27.27%
EPS Next 2Y-16.34%
EPS Next 3Y-8.99%
EPS Next 5Y-0.6%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y4.82%
Revenue growth 5Y2.18%
Sales Q2Q%-7.8%
Revenue Next Year-6.05%
Revenue Next 2Y-4.3%
Revenue Next 3Y-2.28%
Revenue Next 5Y2.31%
EBIT growth 1Y73.33%
EBIT growth 3Y2.54%
EBIT growth 5Y0.45%
EBIT Next Year5.15%
EBIT Next 3Y1.73%
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 for WPP stock?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
What are the PE and PB ratios of WPP PLC-SPONSORED ADR (WPP) stock?
The Price/Earnings (PE) ratio for WPP PLC-SPONSORED ADR (WPP) is 4.04 and the Price/Book (PB) ratio is 1.08.
Can you provide the expected EPS growth for WPP stock?
The Earnings per Share (EPS) of WPP PLC-SPONSORED ADR (WPP) is expected to decline by -27.27% in the next year.