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 and internationally. More Details


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: WPP's weekly volatility (13%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

WPP

0.9%

AU Media

1.2%

AU Market


1 Year Return

18.8%

WPP

-24.9%

AU Media

-1.3%

AU Market

Return vs Industry: WPP exceeded the Australian Media industry which returned -24.9% over the past year.

Return vs Market: WPP exceeded the Australian Market which returned -1.3% over the past year.


Shareholder returns

WPPIndustryMarket
7 Day-0.7%0.9%1.2%
30 Day0.7%-0.7%1.7%
90 Day73.8%16.1%10.1%
1 Year18.8%18.8%-13.3%-24.9%2.0%-1.3%
3 Year-11.6%-25.7%-17.9%-36.7%26.1%10.6%
5 Year24.6%-6.1%-2.2%-34.2%67.5%33.8%

Long-Term 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$0.7) is trading below our estimate of fair value (A$1.76)

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 AU 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 overvalued based on its PB Ratio (2x) compared to the AU Media industry average (1.4x).


Next Steps

Future Growth

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

54.4%

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?

-43.9%

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 43.9% 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 (-3.2%).


Return on Equity

High ROE: WPP has a negative Return on Equity (-48.45%), 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$425.4M) do not cover its short term liabilities (A$716.6M).

Long Term Liabilities: WPP's short term assets (A$425.4M) exceed its long term liabilities (A$93.5M).


Debt to Equity History and Analysis

Debt Level: WPP's debt to equity ratio (62.7%) is considered high.

Reducing Debt: WPP's debt to equity ratio has increased from 52% to 62.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WPP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WPP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.3% per year.


Next Steps

Dividend

What is WPP AUNZ 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?

1.0yrs

Average management tenure


CEO

Jens Monsees

1.25yrs

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 ($USD1.76M) is above average for companies of similar size in the Australian market ($USD706.80K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jens Monsees
CEO, MD & Director1.25yrsAU$2.28m0.18%
A$ 1.1m
Chris Rollinson
Chief Financial Officer3.67yrsAU$492.97k0.0036%
A$ 21.3k
Tim Matheson
Chief Technology Officer1yrno datano data
Eduardo Dowd
Chief Information Officerno datano datano data
Linda Gough
Company Secretary & General Counselno datano datano data
Toby Hemming
Head of Communications & Marketingno datano datano data
Rose Herceg
Chief Strategy Officer5.83yrsno datano data
Ben Dixon
Chief Executive Officer of Data Investment Managementno datano datano data
Rod Pardini
Chief Data Scientistno datano datano data
Dominik Heitmar
Head of Corporate Strategy1yrno datano data
Jon Bird
Chief Executive Officer of VMLY&R and Sibling1yrno datano data
Kelly-Ann Maxwell
Chief Executive Officer of Auckland1yrno datano data

1.0yrs

Average Tenure

Experienced Management: WPP's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jens Monsees
CEO, MD & Director1.25yrsAU$2.28m0.18%
A$ 1.1m
Graham Cubbin
Independent Non Executive Director12.67yrsAU$120.00k0.029%
A$ 173.7k
Geoffrey Earl Wild
Non Executive Director4.75yrsno datano data
Kim Elizabeth Anderson
Independent Non-Executive Director10.17yrsAU$110.00k0.018%
A$ 104.3k
Robert Mactier
Independent Non Executive Chairman12.5yrsAU$235.00k0.12%
A$ 695.0k
Diane Holland
Non-Executive Director0.83yrno datano data
Ranjana Singh
Non-Executive Director4.75yrsno datano data

4.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: WPP's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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:
  • Industry: Advertising
  • Sector: Media
  • Market Cap: AU$592.135m
  • Shares outstanding: 851.99m
  • Website: https://www.wppaunz.com

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)YesOrdinary SharesAUAUDFeb 1994

Biography

WPP AUNZ Limited, together with its subsidiaries, provides marketing, content, and communications services in Australia and internationally. The company operates through four segments: Global Integrated Ag...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 07:03
End of Day Share Price2021/01/20 00:00
Earnings2020/06/30
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.