ASX:WPP

Stock Analysis Report

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Executive Summary

WPP AUNZ Limited, together with its subsidiaries, provides marketing, content, and communications services in Australia.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has WPP AUNZ's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.5%

WPP

2.0%

AU Media

4.0%

AU Market


1 Year Return

-34.4%

WPP

-53.0%

AU Media

-7.0%

AU Market

Return vs Industry: WPP exceeded the Australian Media industry which returned -53% over the past year.

Return vs Market: WPP underperformed the Australian Market which returned -7% over the past year.


Shareholder returns

WPPIndustryMarket
7 Day10.5%2.0%4.0%
30 Day31.3%17.2%12.2%
90 Day-46.6%-28.0%-2.5%
1 Year-31.6%-34.4%-43.5%-53.0%-3.1%-7.0%
3 Year-68.2%-73.8%-35.3%-52.3%19.0%3.3%
5 Year-28.4%-47.9%-22.1%-49.6%33.9%5.0%

Price Volatility Vs. Market

How volatile is WPP AUNZ's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WPP AUNZ undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPP (A$0.32) is trading below our estimate of fair value (A$1.13)

Significantly Below Fair Value: WPP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WPP is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: WPP is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WPP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WPP is good value based on its PB Ratio (0.6x) compared to the AU Media industry average (1.1x).


Next Steps

Future Growth

How is WPP AUNZ forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.0%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as WPP AUNZ has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has WPP AUNZ performed over the past 5 years?

-37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPP is currently unprofitable.

Growing Profit Margin: WPP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WPP is unprofitable, and losses have increased over the past 5 years at a rate of -37.2% per year.

Accelerating Growth: Unable to compare WPP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WPP is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-47.8%).


Return on Equity

High ROE: WPP has a negative Return on Equity (-37.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is WPP AUNZ's financial position?


Financial Position Analysis

Short Term Liabilities: WPP's short term assets (A$550.6M) do not cover its short term liabilities (A$663.4M).

Long Term Liabilities: WPP's short term assets (A$550.6M) exceed its long term liabilities (A$295.6M).


Debt to Equity History and Analysis

Debt Level: WPP's debt to equity ratio (38.8%) is considered satisfactory.

Reducing Debt: WPP's debt to equity ratio has reduced from 42.2% to 38.8% over the past 5 years.

Debt Coverage: WPP's debt is well covered by operating cash flow (46.9%).

Interest Coverage: WPP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is WPP AUNZ's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WPP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WPP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WPP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WPP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WPP is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WPP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Jens Monsees

0.67

Tenure

AU$2,280,697

Compensation

Mr. Jens Monsees, MBA serves as Chief Executive Officer and Managing Director of WPP AUNZ Limited since October 1, 2019 and its Director since October 15, 2019. Mr. Monsees served as Corporate Vice Preside ...


CEO Compensation Analysis

Compensation vs Market: Jens's total compensation ($USD1.59M) is above average for companies of similar size in the Australian market ($USD471.32K).

Compensation vs Earnings: Insufficient data to compare Jens's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jens Monsees
CEO, MD & Director0.67yrAU$2.28m0.070% A$189.0k
Chris Rollinson
Chief Financial Officer3.08yrsAU$492.97k0.0036% A$9.7k
John Steedman
Executive Chairman of Media Investment Mgmt4.17yrsAU$1.14m0.011% A$28.5k
Eduardo Dowd
Chief Information Officerno datano datano data
Linda Gough
Company Secretary & General Counselno datano datano data
Kieran Moore
Chief Communication Officer and CEO of PR4yrsno datano data
Elissa Good-Omozusi
Chief HR & Talent Officerno datano datano data
Rose Herceg
Chief Strategy Officer5.25yrsno datano data
Ben Dixon
Chief Executive Officer of Data Investment Managementno datano datano data
Rod Pardini
Chief Data Scientistno datano datano data

3.1yrs

Average Tenure

Experienced Management: WPP's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jens Monsees
CEO, MD & Director0.67yrAU$2.28m0.070% A$189.0k
John Steedman
Executive Chairman of Media Investment Mgmt4.17yrsAU$1.14m0.011% A$28.5k
Graham Cubbin
Independent Non Executive Director12.08yrsAU$120.00k0.029% A$78.8k
Geoffrey Earl Wild
Non Executive Director4.17yrsno datano data
Kim Elizabeth Anderson
Independent Non-Executive Director9.58yrsAU$110.00k0.018% A$47.2k
Robert Mactier
Independent Non Executive Chairman11.92yrsAU$235.00k0.12% A$315.0k
Diane Holland
Non-Executive Director0.25yrno datano data
Ranjana Singh
Non-Executive Director4.17yrsno datano data

4.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WPP's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WPP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WPP AUNZ Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WPP AUNZ Limited
  • Ticker: WPP
  • Exchange: ASX
  • Founded: 1978
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$268.238m
  • Shares outstanding: 851.55m
  • Website: https://www.wppaunz.com

Number of Employees


Location

  • WPP AUNZ Limited
  • 1 Kent Street
  • Millers Point
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 1994
WPPCHIA (Chi-X Australia)WPP AUNZ LTD NPVAUAUDMay 2016

Biography

WPP AUNZ Limited, together with its subsidiaries, provides marketing, content, and communications services in Australia. The company operates through four segments: Global Integrated Agencies, Large Format Production, Public Relations & Public Affairs, and Specialist Communications. Its services include advertising, branding and identity, media investment management, large format production, public relations, public affairs, digital, e-commerce and shopper marketing, and production and specialist communications services. The company was formerly known as STW Communications Group Limited and changed its name to WPP AUNZ Limited in May 2016. The company was incorporated in 1978 and is headquartered in Millers Point, Australia. WPP AUNZ Limited is a subsidiary of WPP plc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 10:35
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.