WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WPP - US92937A1025 - ADR
20.07 USD
+0.48 (+2.45%)
Taking everything into account, WPP scores 4 out of 10 in our fundamental rating. WPP was compared to 96 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
Looking at the Return On Assets, with a value of 1.63%, WPP is in the better half of the industry, outperforming 63.54% of the companies in the same industry.
WPP's Return On Equity of 12.04% is fine compared to the rest of the industry. WPP outperforms 77.08% of its industry peers.
With a decent Return On Invested Capital value of 6.69%, WPP is doing good in the industry, outperforming 76.04% 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 below the industry average of 8.15%.
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 has a better Profit Margin (2.69%) than 64.58% of its industry peers.
WPP's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.92%, WPP perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
WPP's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.86%, WPP is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
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
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.
Compared to 5 years ago, WPP has less shares outstanding
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.
Looking at the Altman-Z score, with a value of 0.92, WPP is in line with its industry, outperforming 50.00% of the companies in the same industry.
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's Debt to FCF ratio of 9.72 is fine compared to the rest of the industry. WPP outperforms 63.54% 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.
Looking at the Debt to Equity ratio, with a value of 1.85, WPP is doing worse than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.72 | ||
| Altman-Z | 0.92 |
ROIC/WACC1.14
WACC5.85%
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.
With a Current ratio value of 0.86, WPP is not doing good in the industry: 67.71% of the companies in the same industry are doing better.
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.
WPP's Quick ratio of 0.86 is on the low side compared to the rest of the industry. WPP is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
WPP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.50%.
WPP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.97% yearly.
WPP shows a decrease in Revenue. In the last year, the revenue decreased by -4.54%.
Measured over the past years, WPP shows a small growth in Revenue. The Revenue has been growing by 2.18% on average per year.
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
The Earnings Per Share is expected to decrease by -0.72% on average over the next years.
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-0.72%
Revenue Next Year-5.64%
Revenue Next 2Y-4.06%
Revenue Next 3Y-2.07%
Revenue Next 5Y2.31%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.87, 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 95.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WPP to the average of the S&P500 Index (26.31), we can say WPP is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.70, the valuation of WPP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WPP to the average of the S&P500 Index (36.59), we can say WPP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.87 | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
WPP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WPP is cheaper than 87.50% of the companies 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 85.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.71 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
A cheap valuation may be justified as WPP's earnings are expected to decrease with -8.04% in the coming years.
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 -24.38% 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.
WPP's Dividend Yield is rather good when compared to the industry average which is at 4.66. WPP pays more dividend than 98.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, WPP pays a better dividend.
| 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.
WPP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP111.55%
EPS Next 2Y-15.08%
EPS Next 3Y-8.04%
NYSE:WPP (11/28/2025, 8:06:28 PM)
20.07
+0.48 (+2.45%)
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 Cap4.33B
Revenue(TTM)14.18B
Net Income(TTM)381.00M
Analysts48.57
Price Target26.51 (32.09%)
Short Float %0.89%
Short Ratio3.22
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 | 3.87 | ||
| Fwd PE | 4.7 | ||
| P/S | 0.23 | ||
| P/FCF | 4.71 | ||
| P/OCF | 3.59 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.18 |
EPS(TTM)5.19
EY25.86%
EPS(NY)4.27
Fwd EY21.27%
FCF(TTM)4.26
FCFY21.24%
OCF(TTM)5.59
OCFY27.88%
SpS86.97
BVpS19.41
TBVpS-30.12
PEG (NY)N/A
PEG (5Y)N/A
Graham Number47.61
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
WACC5.85%
ROIC/WACC1.14
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-0.72%
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%.