WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - NYSE:WPP - US92937A1025 - ADR
23.96 USD
+0.04 (+0.17%)
Taking everything into account, WPP scores 4 out of 10 in our fundamental rating. WPP was compared to 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 is valued quite cheap, but it does not seem to be growing.
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.
In the past 5 years WPP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WPP (1.63%) is better than 67.02% of its industry peers.
With a decent Return On Equity value of 12.04%, WPP is doing good in the industry, outperforming 76.60% of the companies in the same industry.
WPP has a Return On Invested Capital of 6.69%. This is in the better half of the industry: WPP outperforms 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
Looking at the Profit Margin, with a value of 2.69%, WPP is in the better half of the industry, outperforming 63.83% of the companies in the same industry.
In the last couple of years the Profit Margin of WPP has declined.
With a Operating Margin value of 7.92%, WPP perfoms like the industry average, outperforming 57.45% of the companies in the same industry.
WPP's Operating Margin has declined in the last couple of years.
WPP has a Gross Margin of 15.86%. This is in the lower half of the industry: WPP underperforms 78.72% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WPP is still 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.
The debt/assets ratio for WPP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that WPP is in the distress zone and has some risk of bankruptcy.
WPP has a Altman-Z score (0.94) which is in line with 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 Debt to FCF ratio of 9.72. This is in the better half of the industry: WPP outperforms 60.64% 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.
WPP has a Debt to Equity ratio of 1.85. This is in the lower half of the industry: WPP underperforms 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.94 |
ROIC/WACC1.1
WACC6.1%
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.
The Current ratio of WPP (0.86) is worse than 70.21% of its industry peers.
WPP has a Quick 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.
Looking at the Quick ratio, with a value of 0.86, WPP is doing worse than 69.15% of the companies in the same industry.
| 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.
WPP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
Looking at the last year, WPP shows a decrease in Revenue. The Revenue has decreased by -4.54% in the last year.
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 small growth in Earnings Per Share. The EPS will grow by 0.06% on average per year.
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
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
A Price/Earnings ratio of 4.59 indicates a rather cheap valuation of WPP.
WPP's Price/Earnings ratio is rather cheap when compared to the industry. WPP is cheaper than 91.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, WPP is valued rather cheaply.
The Price/Forward Earnings ratio is 5.08, which indicates a rather cheap valuation of WPP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 87.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.59 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WPP is valued cheaper than 82.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WPP is valued cheaply inside the industry as 81.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | 5.61 |
4.3 Compensation for Growth
WPP's earnings are expected to decrease with -5.47% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.79%, WPP is a good candidate for dividend investing.
WPP's Dividend Yield is rather good when compared to the industry average which is at 4.39. WPP pays more dividend than 97.87% of the companies in the same industry.
WPP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| 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
WPP pays out 111.55% of its income as dividend. This is not a sustainable payout ratio.
DP111.55%
EPS Next 2Y-10.95%
EPS Next 3Y-5.47%
NYSE:WPP (10/27/2025, 9:48:37 AM)
23.96
+0.04 (+0.17%)
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 Cap5.17B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target31.9 (33.14%)
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 | 4.59 | ||
| Fwd PE | 5.08 | ||
| P/S | 0.27 | ||
| P/FCF | 5.59 | ||
| P/OCF | 4.26 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.61 |
EPS(TTM)5.22
EY21.79%
EPS(NY)4.72
Fwd EY19.7%
FCF(TTM)4.29
FCFY17.89%
OCF(TTM)5.63
OCFY23.48%
SpS87.44
BVpS19.52
TBVpS-30.28
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 | 0.94 |
F-Score6
WACC6.1%
ROIC/WACC1.1
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%.