(WPP) WPP - Ratings and Ratios
Consultancy, Branding, Advertising, PR, Technology
Description: WPP WPP
WPP PLC ADR (NYSE:WPP) is a leading global creative transformation company that offers a diverse range of services, including marketing strategy, media planning, public relations, and technology implementation. The companys operations are segmented into Global Integrated Agencies, Public Relations, and Specialist Agencies, allowing it to cater to various client needs across different regions, including North America, Europe, Asia Pacific, and others.
From a business perspective, WPPs strengths lie in its ability to provide integrated services that combine creative ideation, media strategy, and technology implementation. This allows the company to help clients navigate the complex marketing landscape and stay ahead of the competition. Key Performance Indicators (KPIs) to watch for WPP include revenue growth, client win rates, and digital transformation metrics, such as the proportion of digital revenue to total revenue.
In terms of financials, WPPs Market Cap stands at $6.004 billion USD, with a P/E ratio of 8.41 and a Forward P/E of 5.50. The companys Return on Equity (RoE) is 18.57%, indicating a relatively strong return for shareholders. To further analyze WPPs financial health, other KPIs to consider include the debt-to-equity ratio, interest coverage ratio, and operating margin. These metrics can provide insights into the companys capital structure, ability to service debt, and profitability.
To evaluate WPPs stock performance, its essential to consider its historical trends and industry benchmarks. By analyzing the companys stock price movements in relation to its peers and the broader market, investors can gain a better understanding of WPPs relative performance and potential future prospects. Additional KPIs to consider include the stocks beta, dividend yield, and trading volume, which can provide further insights into the stocks risk profile and liquidity.
WPP Stock Overview
| Market Cap in USD | 5,372m |
| Sub-Industry | Advertising |
| IPO / Inception | 1990-03-26 |
WPP Stock Ratings
| Growth Rating | -72.3% |
| Fundamental | 60.6% |
| Dividend Rating | 45.1% |
| Return 12m vs S&P 500 | -57.9% |
| Analyst Rating | 3.0 of 5 |
WPP Dividends
| Dividend Yield 12m | 8.71% |
| Yield on Cost 5y | 6.12% |
| Annual Growth 5y | -2.69% |
| Payout Consistency | 83.9% |
| Payout Ratio | 8.6% |
WPP Growth Ratios
| Growth Correlation 3m | -71.6% |
| Growth Correlation 12m | -94.8% |
| Growth Correlation 5y | -51.6% |
| CAGR 5y | -13.32% |
| CAGR/Max DD 3y (Calmar Ratio) | -0.23 |
| CAGR/Mean DD 3y (Pain Ratio) | -0.65 |
| Sharpe Ratio 12m | -0.79 |
| Alpha | -62.62 |
| Beta | 0.749 |
| Volatility | 31.86% |
| Current Volume | 409k |
| Average Volume 20d | 483.5k |
| Stop Loss | 22.5 (-4.1%) |
| Signal | -0.62 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (688.5m TTM) > 0 and > 6% of Revenue (6% = 1.50b TTM) |
| FCFTA -0.01 (>2.0%) and ΔFCFTA -6.70pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -7.63% (prev -10.36%; Δ 2.73pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.00 (>3.0%) and CFO 102.0m <= Net Income 688.5m (YES >=105%, WARN >=100%) |
| Net Debt (5.32b) to EBITDA (2.35b) ratio: 2.26 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.86 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (218.6m) change vs 12m ago 1.74% (target <= -2.0% for YES) |
| Gross Margin 15.22% (prev 16.97%; Δ -1.75pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 100.0% (prev 83.64%; Δ 16.40pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.00 (EBITDA TTM 2.35b / Interest Expense TTM 595.0m) >= 6 (WARN >= 3) |
Altman Z'' 0.48
| (A) -0.08 = (Total Current Assets 11.85b - Total Current Liabilities 13.76b) / Total Assets 23.39b |
| (B) 0.12 = Retained Earnings (Balance) 2.82b / Total Assets 23.39b |
| (C) 0.07 = EBIT TTM 1.79b / Avg Total Assets 25.01b |
| (D) 0.14 = Book Value of Equity 2.79b / Total Liabilities 19.99b |
| Total Rating: 0.48 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 60.61
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield -1.82% = -0.91 |
| 3. FCF Margin -0.68% = -0.25 |
| 4. Debt/Equity 2.13 = 0.57 |
| 5. Debt/Ebitda 2.26 = -0.52 |
| 6. ROIC - WACC (= 11.01)% = 12.50 |
| 7. RoE 20.20% = 1.68 |
| 8. Rev. Trend 22.20% = 1.66 |
| 9. EPS Trend -32.54% = -1.63 |
What is the price of WPP shares?
Over the past week, the price has changed by +4.04%, over one month by -8.64%, over three months by -14.02% and over the past year by -51.41%.
Is WPP a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WPP is around 20.35 USD . This means that WPP is currently overvalued and has a potential downside of -13.22%.
Is WPP a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 0
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the WPP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 29.8 | 27% |
| Analysts Target Price | 29.8 | 27% |
| ValueRay Target Price | 21.9 | -6.7% |
Last update: 2025-10-06 02:02
WPP Fundamental Data Overview
P/E Trailing = 10.6824
P/E Forward = 4.7847
P/S = 0.3789
P/B = 1.2318
P/EG = 3.667
Beta = 0.749
Revenue TTM = 25.02b GBP
EBIT TTM = 1.79b GBP
EBITDA TTM = 2.35b GBP
Long Term Debt = 3.85b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.16b GBP (from shortTermDebt, last quarter)
Debt = 6.75b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.32b GBP (from netDebt column, last quarter)
Enterprise Value = 9.32b GBP (4.00b + Debt 6.75b - CCE 1.44b)
Interest Coverage Ratio = 3.00 (Ebit TTM 1.79b / Interest Expense TTM 595.0m)
FCF Yield = -1.82% (FCF TTM -170.0m / Enterprise Value 9.32b)
FCF Margin = -0.68% (FCF TTM -170.0m / Revenue TTM 25.02b)
Net Margin = 2.75% (Net Income TTM 688.5m / Revenue TTM 25.02b)
Gross Margin = 15.22% ((Revenue TTM 25.02b - Cost of Revenue TTM 21.21b) / Revenue TTM)
Gross Margin QoQ = 12.56% (prev 18.78%)
Tobins Q-Ratio = 0.40 (Enterprise Value 9.32b / Total Assets 23.39b)
Interest Expense / Debt = 2.64% (Interest Expense 178.0m / Debt 6.75b)
Taxrate = 28.57% (28.0m / 98.0m)
NOPAT = 1.28b (EBIT 1.79b * (1 - 28.57%))
Current Ratio = 0.86 (Total Current Assets 11.85b / Total Current Liabilities 13.76b)
Debt / Equity = 2.13 (Debt 6.75b / totalStockholderEquity, last quarter 3.16b)
Debt / EBITDA = 2.26 (Net Debt 5.32b / EBITDA 2.35b)
Debt / FCF = -31.28 (negative FCF - burning cash) (Net Debt 5.32b / FCF TTM -170.0m)
Total Stockholder Equity = 3.41b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.94% (Net Income 688.5m / Total Assets 23.39b)
RoE = 20.20% (Net Income TTM 688.5m / Total Stockholder Equity 3.41b)
RoCE = 24.62% (EBIT 1.79b / Capital Employed (Equity 3.41b + L.T.Debt 3.85b))
RoIC = 15.46% (NOPAT 1.28b / Invested Capital 8.25b)
WACC = 4.45% (E(4.00b)/V(10.76b) * Re(8.78%) + D(6.75b)/V(10.76b) * Rd(2.64%) * (1-Tc(0.29)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.86%
Fair Price DCF = unknown (Cash Flow -170.0m)
EPS Correlation: -32.54 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 22.20 | Revenue CAGR: -0.55% | SUE: N/A | # QB: 0
Additional Sources for WPP Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle