WPP Stock Analysis: WPP | NYSE
Advertising Agencies | NYSE, USA | Market Cap: 5.475m USD | 12M Return: 19.6% | US92937A1025 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 7.90M
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
WPP plc is a London-headquartered creative transformation company that delivers communications, experience, commerce, and technology services across global markets, organized into three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. Its offerings span the full marketing value chain, including strategy, creative, production, media planning and buying, influencer and social media management, data analytics, brand consulting, and crisis and reputation management.
As a major participant in the GICS Advertising sub-industry, WPP operates a holding-company model that houses multiple specialized agency networks, a structure common among large global advertising groups. The company is listed in the Communication Services sector and trades on the NYSE as an ADR under the ticker WPP.
- AI tools disrupt traditional creative agency pricing model
- Tech platforms take ad share, pressuring agency margins
- Cost transformation program targets operating margin recovery
| Net Income: -239.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.06 > 1.0 |
| NWC/Revenue: -14.69% < 20% (prev -13.47%; Δ -1.23% < -1%) |
| CFO/TA 0.05 > 3% & CFO 1.10b > Net Income -239.9m |
| Net Debt (6.63b) to EBITDA (828.3m): 8.00 < 3 |
| Current Ratio: 0.87 > 1.5 & < 3 |
| Outstanding Shares: last quarter (219.6m) vs 12m ago 0.55% < -2% |
| Gross Margin: 15.93% > 18% (prev 15.86%; Δ 0.07% > 0.5%) |
| Asset Turnover: 56.84% > 50% (prev 60.60%; Δ -3.77% > 0%) |
| Interest Coverage Ratio: 1.15 > 6 (EBIT TTM 401.7m / Interest Expense TTM 349.3m) |
| A: -0.08 (Total Current Assets 12.6b - Total Current Liabilities 14.5b) / Total Assets 23.4b |
| B: 0.09 (Retained Earnings 2.12b / Total Assets 23.4b) |
| C: 0.02 (EBIT TTM 401.7m / Avg Total Assets 23.4b) |
| D: 0.13 (Book Value of Equity 2.59b / Total Liabilities 20.7b) |
| Altman-Z'' = -0.01 = B |
| DSRI: 1.05 (Receivables 10.2b/10.4b, Revenue 13.3b/14.2b) |
| GMI: 1.00 (GM 15.86% / 15.93%) |
| AQI: 0.96 (AQ_t 0.38 / AQ_t-1 0.40) |
| SGI: 0.94 (Revenue 13.3b / 14.2b) |
| TATA: -0.06 (NI -239.9m - CFO 1.10b) / TA 23.4b) |
| Beneish M = -3.07 (Cap -4..+1) = AA |
As of October 16, 2026, the stock is trading at USD 27.16 with a total of 509,700 shares traded. Over the past week, the price has changed by +8.75%, over one month by +7.23%, over three months by +48.38% and over the past year by +19.60%.
Current recommended Stop Loss: 25.40 (which is 6.5% or 2.4 ATR below the current price).
WPP has received a consensus analysts rating of 2.67. Therefore, it is recommended to hold WPP.
- StrongBuy: 0
- Buy: 0
- Hold: 2
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 23.8 | -12.3% |
Market Cap GBP = 4.13b (5.47b USD * 0.75529 USD.GBP)
P/E Forward = 4.3706
P/S = 0.4129
P/B = 1.5577
P/EG = 4.229
Revenue TTM = 13.3b GBP
EBIT TTM = 401.7m GBP
EBITDA TTM = 828.3m GBP
Long Term Debt = 3.87b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.70b GBP (from shortTermDebt, last quarter)
Debt = 8.98b GBP (from shortLongTermDebtTotal, last quarter) + Leases 1.84b
Net Debt = 6.63b GBP (calculated: Debt 8.98b - CCE 2.35b)
Enterprise Value = 10.8b GBP (4.13b + Debt 8.98b - CCE 2.35b)
Interest Coverage Ratio = 1.15 (Ebit TTM 401.7m / Interest Expense TTM 349.3m)
EV/FCF = 10.64x (Enterprise Value 10.8b / FCF TTM 1.01b)
FCF Yield = 9.40% (FCF TTM 1.01b / Enterprise Value 10.8b)
FCF Margin = 7.60% (FCF TTM 1.01b / Revenue TTM 13.3b)
Net Margin = -1.80% (Net Income TTM -239.9m / Revenue TTM 13.3b)
Gross Margin = 15.93% ((Revenue TTM 13.3b - Cost of Revenue TTM 11.2b) / Revenue TTM)
Gross Margin QoQ = 12.63% (prev 19.01%)
Tobins Q-Ratio = 0.46 (Enterprise Value 10.8b / Total Assets 23.4b)
Interest Expense / Debt = 3.89% (Interest Expense 349.3m / Debt 8.98b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 317.3m (EBIT 401.7m * (1 - 21.00%))
Current Ratio = 0.87 (Total Current Assets 12.6b / Total Current Liabilities 14.5b)
Debt / Equity = 3.47 (Debt 8.98b / totalStockholderEquity, last quarter 2.59b)
Debt / EBITDA = 8.00 (Net Debt 6.63b / EBITDA 828.3m)
Debt / FCF = 6.55 (Net Debt 6.63b / FCF TTM 1.01b)
Total Stockholder Equity = 2.94b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.02% (Net Income -239.9m / Total Assets 23.4b)
RoE = -8.15% (Net Income TTM -239.9m / Total Stockholder Equity 2.94b)
RoCE = 5.90% (EBIT 401.7m / Capital Employed (Equity 2.94b + L.T.Debt 3.87b))
RoIC = 3.20% (NOPAT 317.3m / Invested Capital 9.91b)
WACC = 4.42% (E(4.13b)/V(13.1b) * Re(7.33%) + D(8.98b)/V(13.1b) * Rd(3.89%) * (1-Tc(0.21)))
Discount Rate = 7.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -56.78 | Cagr: -50.95%
[DCF] Terminal Value 77.97% ; FCFF base≈912.3m ; Y1≈1.05b ; Y5≈1.54b
[DCF] Fair Price = 76.66 (EV 23.2b - Net Debt 6.63b = Equity 16.5b / Shares 215.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: -89.85 | Revenue CAGR: -4.46% | SUE: 2.18 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS next Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2026-12-31): EPS=3.64 | Chg30d=-2.08% | Revisions=-25% | GrowthEPS=-14.8% | GrowthRev=-4.2%
EPS next Year (2027-12-31): EPS=3.77 | Chg30d=+7.78% | Revisions=+0% | GrowthEPS=+3.7% | GrowthRev=-0.3%
[Analyst] Revisions Ratio: -17% (up=1, down=2)