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WPP PLC-SPONSORED ADR (WPP) Stock Fundamental Analysis

NYSE:WPP - US92937A1025 - ADR

27.09 USD
+0.69 (+2.61%)
Last: 8/22/2025, 8:04:00 PM
27.09 USD
0 (0%)
After Hours: 8/22/2025, 8:04:00 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to WPP. WPP was compared to 99 industry peers in the Media industry. WPP has a medium profitability rating, but doesn't score so well on its financial health evaluation. WPP is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year WPP was profitable.
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.
WPP Yearly Net Income VS EBIT VS OCF VS FCFWPP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B -2B

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 64.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.04%, WPP is in the better half of the industry, outperforming 79.80% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.69%, WPP is doing good in the industry, outperforming 73.74% 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 7.61%.
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 RankSector 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
WPP Yearly ROA, ROE, ROICWPP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60

1.3 Margins

WPP has a Profit Margin of 2.69%. This is in the better half of the industry: WPP outperforms 60.61% of its industry peers.
In the last couple of years the Profit Margin of WPP has declined.
WPP has a Operating Margin of 7.92%. This is comparable to the rest of the industry: WPP outperforms 56.57% of its industry peers.
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: 78.79% of the companies in the same industry are doing better.
WPP's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
WPP Yearly Profit, Operating, Gross MarginsWPP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WPP is creating some 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 an improved debt to assets ratio.
WPP Yearly Shares OutstandingWPP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
WPP Yearly Total Debt VS Total AssetsWPP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

WPP has an Altman-Z score of 0.96. This is a bad value and indicates that WPP is not financially healthy and even has some risk of bankruptcy.
WPP has a Altman-Z score (0.96) 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 Debt to FCF ratio of 9.72. This is in the better half of the industry: WPP outperforms 61.62% 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 67.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF 9.72
Altman-Z 0.96
ROIC/WACC1.07
WACC6.23%
WPP Yearly LT Debt VS Equity VS FCFWPP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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 70.71% 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.
With a Quick ratio value of 0.86, WPP is not doing good in the industry: 69.70% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.86
Quick Ratio 0.86
WPP Yearly Current Assets VS Current LiabilitesWPP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

3

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%.
The Earnings Per Share has been decreasing by -0.97% on average over the past years.
The Revenue has decreased by -4.54% in the past year.
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

WPP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.11% yearly.
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-20.63%
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%
EPS Next 5Y-0.11%
Revenue Next Year-4.63%
Revenue Next 2Y-2.78%
Revenue Next 3Y-1.39%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
WPP Yearly Revenue VS EstimatesWPP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
WPP Yearly EPS VS EstimatesWPP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.15, the valuation of WPP can be described as very cheap.
Based on the Price/Earnings ratio, WPP is valued cheaper than 91.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. WPP is valued rather cheaply when compared to this.
WPP is valuated cheaply with a Price/Forward Earnings ratio of 5.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPP indicates a rather cheap valuation: WPP is cheaper than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, WPP is valued rather cheaply.
Industry RankSector Rank
PE 5.15
Fwd PE 5.63
WPP Price Earnings VS Forward Price EarningsWPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 83.84% 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 84.85% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.27
EV/EBITDA 5.92
WPP Per share dataWPP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80

4.3 Compensation for Growth

WPP's earnings are expected to decrease with -5.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%

5

5. Dividend

5.1 Amount

WPP has a Yearly Dividend Yield of 9.81%, which is a nice return.
In the last 3 months the price of WPP has falen by -32.48%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.93, WPP pays a better dividend. On top of this WPP pays more dividend than 97.98% 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 RankSector Rank
Dividend Yield 9.81%

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
WPP Yearly Dividends per shareWPP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

WPP pays out 111.55% of its income as dividend. 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-10.47%
EPS Next 3Y-5.23%
WPP Yearly Income VS Free CF VS DividendWPP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B -2B
WPP Dividend Payout.WPP Dividend Payout, showing the Payout Ratio.WPP Dividend Payout.PayoutRetained Earnings

WPP PLC-SPONSORED ADR

NYSE:WPP (8/22/2025, 8:04:00 PM)

After market: 27.09 0 (0%)

27.09

+0.69 (+2.61%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)08-07 2025-08-07/bmo
Earnings (Next)N/A N/A
Inst Owners58.98%
Inst Owner Change12.79%
Ins Owners0.2%
Ins Owner Change0%
Market Cap5.84B
Analysts49.09
Price Target32.85 (21.26%)
Short Float %0.65%
Short Ratio2.67
Dividend
Industry RankSector Rank
Dividend Yield 9.81%
Yearly Dividend2.68
Dividend Growth(5Y)-7.91%
DP111.55%
Div Incr Years3
Div Non Decr Years3
Ex-Date10-10 2025-10-10 (0.503325)
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)-8.23%
PT rev (3m)-33.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.86%
EPS NY rev (3m)-20.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.63%
Valuation
Industry RankSector Rank
PE 5.15
Fwd PE 5.63
P/S 0.31
P/FCF 6.27
P/OCF 4.78
P/B 1.38
P/tB N/A
EV/EBITDA 5.92
EPS(TTM)5.26
EY19.42%
EPS(NY)4.81
Fwd EY17.76%
FCF(TTM)4.32
FCFY15.95%
OCF(TTM)5.67
OCFY20.93%
SpS88.15
BVpS19.67
TBVpS-30.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector 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 0.96
F-Score6
WACC6.23%
ROIC/WACC1.07
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-20.63%
EPS Next 2Y-10.47%
EPS Next 3Y-5.23%
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-4.63%
Revenue Next 2Y-2.78%
Revenue Next 3Y-1.39%
Revenue Next 5Y2.31%
EBIT growth 1Y73.33%
EBIT growth 3Y2.54%
EBIT growth 5Y0.45%
EBIT Next Year21.17%
EBIT Next 3Y8.43%
EBIT Next 5Y12.95%
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%