WPP PLC-SPONSORED ADR (WPP)
US92937A1025 - ADR
Taking everything into account, WPP scores 3 out of 10 in our fundamental rating. WPP was compared to 96 industry peers in the Media industry. WPP has a bad profitability rating. Also its financial health evaluation is rather negative. WPP has a valuation in line with the averages, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of 0.41%, WPP is in line with its industry, outperforming 53.68% of the companies in the same industry.
WPP has a better Return On Equity (3.27%) than 68.42% of its industry peers.
WPP's Return On Invested Capital of 3.06% is in line compared to the rest of the industry. WPP outperforms 53.68% of its industry peers.
WPP had an Average Return On Invested Capital over the past 3 years of 5.60%. This is below the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 3.27% | ||
| ROIC | 3.06% |
ROA(3y)1.69%
ROA(5y)-0.2%
ROE(3y)13.15%
ROE(5y)-2.52%
ROIC(3y)5.6%
ROIC(5y)N/A
1.3 Margins
WPP has a Profit Margin (0.74%) which is in line with its industry peers.
In the last couple of years the Profit Margin of WPP has declined.
Looking at the Operating Margin, with a value of 3.58%, WPP is in line with its industry, outperforming 41.05% of the companies in the same industry.
In the last couple of years the Operating Margin of WPP has declined.
With a Gross Margin value of 16.97%, WPP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
WPP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.58% | ||
| PM (TTM) | 0.74% | ||
| GM | 16.97% |
OM growth 3YN/A
OM growth 5Y-17.82%
PM growth 3YN/A
PM growth 5Y-34.82%
GM growth 3Y0.36%
GM growth 5Y-2.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WPP is destroying value.
The number of shares outstanding for WPP has been increased compared to 1 year ago.
The number of shares outstanding for WPP has been reduced compared to 5 years ago.
Compared to 1 year ago, WPP has a worse debt to assets ratio.
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 of 0.94. This is comparable to the rest of the industry: WPP outperforms 46.32% of its industry peers.
The Debt to FCF ratio of WPP is 6.73, which is on the high side as it means it would take WPP, 6.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.73, WPP is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
A Debt/Equity ratio of 1.78 is on the high side and indicates that WPP has dependencies on debt financing.
The Debt to Equity ratio of WPP (1.78) is worse than 71.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 6.73 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.49
WACC6.28%
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 has a worse Current ratio (0.86) than 83.16% 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 0.84, WPP is doing worse than 81.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
WPP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.39%.
The Earnings Per Share has been decreasing by -2.78% on average over the past years.
The Revenue has been growing slightly by 2.88% in the past year.
The Revenue has been growing slightly by 2.62% on average over the past years.
EPS 1Y (TTM)-6.39%
EPS 3Y16.12%
EPS 5Y-2.78%
EPS growth Q2Q-9.67%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y7.34%
Revenue growth 5Y2.62%
Revenue growth Q2Q-0.65%
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 2.17% on average per year.
Based on estimates for the next years, WPP will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y-1.92%
EPS Next 2Y2.63%
EPS Next 3Y3.8%
EPS Next 5Y2.17%
Revenue Next Year-0.5%
Revenue Next 2Y1%
Revenue Next 3Y1.22%
Revenue Next 5Y1.44%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.63 indicates a reasonable valuation of WPP.
Based on the Price/Earnings ratio, WPP is valued cheaper than 91.58% of the companies in the same industry.
WPP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.67.
WPP is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
80.00% of the companies in the same industry are more expensive than WPP, based on the Price/Forward Earnings ratio.
WPP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
WPP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WPP is cheaper than 65.26% of the companies in the same industry.
76.84% 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 | 8.5 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.63%
EPS Next 3Y3.8%
5. Dividend
5.1 Amount
WPP has a Yearly Dividend Yield of 4.82%, which is a nice return.
WPP's Dividend Yield is rather good when compared to the industry average which is at 4.31. WPP pays more dividend than 92.63% of the companies in the same industry.
WPP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
5.2 History
The dividend of WPP decreases each year by -7.77%.
WPP has been paying a dividend for at least 10 years, so it has a reliable track record.
WPP has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-7.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
382.97% of the earnings are spent on dividend by WPP. This is not a sustainable payout ratio.
DP382.97%
EPS Next 2Y2.63%
EPS Next 3Y3.8%
WPP PLC-SPONSORED ADR
NYSE:WPP (5/1/2024, 9:51:13 AM)
50.46
+0.11 (+0.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.41% | ||
| ROE | 3.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.58% | ||
| PM (TTM) | 0.74% | ||
| GM | 16.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.39%
EPS 3Y16.12%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.88%
Revenue growth 3Y7.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y