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WPP

DB:0WP
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0WP
DB
£11B
Market Cap
  1. Home
  2. DE
  3. Media
Company description

WPP plc provides various communications services worldwide. The last earnings update was 19 days ago. More info.


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0WP Share Price and Events
7 Day Returns
3.1%
DB:0WP
1.8%
DE Media
2.1%
DE Market
1 Year Returns
-20.1%
DB:0WP
-34.3%
DE Media
-7.6%
DE Market
0WP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WPP (0WP) 3.1% 2.2% 5.2% -20.1% -50.5% -31%
DE Media 1.8% -4.9% -0.2% -34.3% -39.1% -9.8%
DE Market 2.1% 3.6% 8.1% -7.6% 9.8% 12.4%
1 Year Return vs Industry and Market
  • 0WP outperformed the Media industry which returned -34.3% over the past year.
  • 0WP underperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
0WP
Industry
5yr Volatility vs Market

0WP Value

 Is WPP undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of WPP to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for WPP.

DB:0WP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:0WP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Media Unlevered Beta Simply Wall St/ S&P Global 0.8
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.802 (1 + (1- 19%) (60.66%))
1.131
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.131 * 6.65%)
7.75%

Discounted Cash Flow Calculation for DB:0WP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for WPP is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:0WP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.75%)
2019 1,349.53 Analyst x12 1,252.44
2020 1,328.74 Analyst x13 1,144.43
2021 1,296.67 Analyst x6 1,036.46
2022 1,284.46 Est @ -0.94% 952.84
2023 1,276.87 Est @ -0.59% 879.06
2024 1,272.47 Est @ -0.35% 813.01
2025 1,270.27 Est @ -0.17% 753.21
2026 1,269.60 Est @ -0.05% 698.65
2027 1,270.00 Est @ 0.03% 648.59
2028 1,271.14 Est @ 0.09% 602.48
Present value of next 10 years cash flows £8,781.17
DB:0WP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £1,271.14 × (1 + 0.23%) ÷ (7.75% – 0.23%)
£16,932.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £16,932.99 ÷ (1 + 7.75%)10
£8,025.63
DB:0WP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £8,781.17 + £8,025.63
£16,806.80
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £16,806.80 / 1,261.96
£13.32
DB:0WP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:0WP represents 1.16207x of LSE:WPP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.16207x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 13.32 x 1.16207
€15.48
Value per share (EUR) From above. €15.48
Current discount Discount to share price of €10.11
= -1 x (€10.11 - €15.48) / €15.48
34.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price WPP is available for.
Intrinsic value
35%
Share price is €10.11 vs Future cash flow value of €15.48
Current Discount Checks
For WPP to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • WPP's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • WPP's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for WPP's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WPP's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:0WP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.85
LSE:WPP Share Price ** LSE (2019-03-20) in GBP £8.7
Germany Media Industry PE Ratio Median Figure of 10 Publicly-Listed Media Companies 30.47x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 18.91x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of WPP.

DB:0WP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:WPP Share Price ÷ EPS (both in GBP)

= 8.7 ÷ 0.85

10.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WPP is good value based on earnings compared to the DE Media industry average.
  • WPP is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does WPP's expected growth come at a high price?
Raw Data
DB:0WP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
4.3%per year
Germany Media Industry PEG Ratio Median Figure of 7 Publicly-Listed Media Companies 1.62x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

DB:0WP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.21x ÷ 4.3%

2.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WPP is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WPP's assets?
Raw Data
DB:0WP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £7.54
LSE:WPP Share Price * LSE (2019-03-20) in GBP £8.7
Germany Media Industry PB Ratio Median Figure of 12 Publicly-Listed Media Companies 3.68x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.79x
DB:0WP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:WPP Share Price ÷ Book Value per Share (both in GBP)

= 8.7 ÷ 7.54

1.15x

* Primary Listing of WPP.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • WPP is good value based on assets compared to the DE Media industry average.
X
Value checks
We assess WPP's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Media industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Media industry average (and greater than 0)? (1 check)
  5. WPP has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

0WP Future Performance

 How is WPP expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WPP expected to grow at an attractive rate?
  • WPP's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • WPP's earnings growth is positive but not above the Germany market average.
  • WPP's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:0WP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:0WP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 4.3%
DB:0WP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 1.1%
Germany Media Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
Germany Media Industry Revenue Growth Rate Market Cap Weighted Average 4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:0WP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:0WP Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 16,436 1,380 1
2021-12-31 16,005 1,727 1,188 3
2020-12-31 15,938 1,755 1,142 9
2019-12-31 15,632 1,654 1,092 9
DB:0WP Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 15,602 1,694 1,063
2018-09-30 15,232 1,545 1,478
2018-06-30 15,108 1,395 1,893
2018-03-31 15,187 1,402 1,855
2017-12-31 15,265 1,408 1,817
2017-09-30 15,508 1,784
2017-06-30 15,503 1,793 1,750
2017-03-31 14,946 1,784 1,575
2016-12-31 14,389 1,774 1,400
2016-09-30 13,661 1,120
2016-06-30 12,932 1,607 840
2016-03-31 12,584 1,483 1,000

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WPP's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
  • WPP's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:0WP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from WPP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:0WP Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.06 1.06 1.06 1.00
2021-12-31 0.94 1.01 0.85 7.00
2020-12-31 0.86 0.96 0.74 12.00
2019-12-31 0.82 0.95 0.70 11.00
DB:0WP Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.85
2018-09-30 1.18
2018-06-30 1.51
2018-03-31 1.48
2017-12-31 1.44
2017-09-30 1.41
2017-06-30 1.38
2017-03-31 1.24
2016-12-31 1.10
2016-09-30 0.87
2016-06-30 0.65
2016-03-31 0.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • WPP is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess WPP's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
WPP has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

0WP Past Performance

  How has WPP performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare WPP's growth in the last year to its industry (Media).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • WPP's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • WPP's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • WPP's 1-year earnings growth is negative, it can't be compared to the DE Media industry average.
Earnings and Revenue History
WPP's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from WPP Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:0WP Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,602.40 1,062.90 1,515.90
2018-09-30 15,231.65 1,477.90 3,364.40
2018-06-30 15,107.70 1,892.90 1,222.40
2018-03-31 15,186.55 1,854.75 1,249.80
2017-12-31 15,265.40 1,816.60 1,277.20
2017-09-30 15,507.50 1,783.50 -2,573.65
2017-06-30 15,502.80 1,750.40 -2,434.00
2017-03-31 14,945.85 1,575.25 -723.45
2016-12-31 14,388.90 1,400.10 987.10
2016-09-30 13,660.60 1,119.95 -2,102.15
2016-06-30 12,932.30 839.80 7,778.20
2016-03-31 12,583.75 1,000.00 7,583.45
2015-12-31 12,235.20 1,160.20 903.90
2015-09-30 12,067.40 1,219.40 7,334.50
2015-06-30 11,899.60 1,278.60 7,280.30
2015-03-31 11,714.25 1,177.90 7,221.00
2014-12-31 11,528.90 1,077.20 7,161.70
2014-09-30 11,345.15 1,048.80 7,153.25
2014-06-30 11,161.40 1,020.40 7,144.80
2014-03-31 11,090.40 978.45 7,181.20
2013-12-31 11,019.40 936.50 7,217.60
2013-09-30 10,873.80 881.15 7,130.10
2013-06-30 10,728.20 825.80 7,042.60
2013-03-31 10,550.65 824.25 6,926.15
2012-12-31 10,373.10 822.70 6,809.70
2012-09-30 10,326.75 854.95 6,780.45
2012-06-30 10,280.40 887.20 6,751.20
2012-03-31 10,151.10 863.65 6,655.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • WPP has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • WPP used its assets less efficiently than the DE Media industry average last year based on Return on Assets.
  • WPP's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WPP's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Media industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
WPP has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

0WP Health

 How is WPP's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up WPP's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WPP's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • WPP's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of WPP's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from WPP Company Filings, last reported 2 months ago.

DB:0WP Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 9,806.60 6,659.90 2,643.20
2018-09-30 9,806.60 6,659.90 2,643.20
2018-06-30 9,993.50 6,852.90 2,221.00
2018-03-31 9,993.50 6,852.90 2,221.00
2017-12-31 9,962.00 6,874.50 2,391.40
2017-09-30 9,962.00 6,874.50 2,391.40
2017-06-30 9,856.60 7,525.50 2,856.00
2017-03-31 9,856.60 7,525.50 2,856.00
2016-12-31 9,767.60 6,567.40 2,436.90
2016-09-30 9,767.60 6,567.40 2,436.90
2016-06-30 8,978.20 6,396.30 2,147.40
2016-03-31 8,978.20 6,396.30 2,147.40
2015-12-31 8,015.80 5,593.20 2,382.40
2015-09-30 8,015.80 5,593.20 2,382.40
2015-06-30 7,807.60 4,735.70 1,354.20
2015-03-31 7,807.60 4,735.70 1,354.20
2014-12-31 7,826.80 4,788.10 2,512.70
2014-09-30 7,826.80 4,788.10 2,512.70
2014-06-30 7,547.10 4,165.20 1,208.00
2014-03-31 7,547.10 4,165.20 1,208.00
2013-12-31 7,846.50 4,462.00 2,221.60
2013-09-30 7,846.50 4,462.00 2,221.60
2013-06-30 8,009.80 4,142.40 1,425.30
2013-03-31 8,009.80 4,142.40 1,425.30
2012-12-31 7,060.60 4,766.50 1,945.30
2012-09-30 7,060.60 4,766.50 1,945.30
2012-06-30 7,056.70 4,211.90 1,350.60
2012-03-31 7,056.70 4,211.90 1,350.60
  • WPP's level of debt (67.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (56.8% vs 67.9% today).
  • Debt is well covered by operating cash flow (25.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess WPP's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. WPP has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

0WP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.9%
Current annual income from WPP dividends. Estimated to be 6.87% next year.
If you bought €2,000 of WPP shares you are expected to receive €138 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • WPP's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.49%).
  • WPP's dividend is above the markets top 25% of dividend payers in Germany (3.83%).
Upcoming dividend payment

Purchase WPP on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:0WP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Germany Media Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 6.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:0WP Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.60 2.00
2021-12-31 0.60 10.00
2020-12-31 0.60 22.00
2019-12-31 0.60 21.00
DB:0WP Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-01 0.600 6.952
2018-04-27 0.600 5.828
2018-03-01 0.600 5.184
2017-05-05 0.566 3.935
2016-05-03 0.447 2.594
2015-05-20 0.382 2.583
2014-05-13 0.342 2.563
2013-08-29 0.211 1.634
2013-05-01 0.285 2.476
2013-04-30 0.285 2.680
2012-04-30 0.246 2.799
2011-05-03 0.178 2.513
2011-03-04 0.178 2.331
2010-05-05 0.155 2.161
2010-04-30 0.155 2.269
2010-03-05 0.155 2.280
2009-08-26 0.155 2.696
2009-03-23 0.155 3.549

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of WPP's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess WPP's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can WPP afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WPP has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

0WP Management

 What is the CEO of WPP's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Read
COMPENSATION £2,219,000
AGE 51
TENURE AS CEO 0.5 years
CEO Bio

Mr. Mark Read has been the Chief Executive Officer and Executive Director of WPP Plc since September 3, 2018. Mr. Read was the Joint Chief Operating Officer of WPP Plc since April 14, 2018. He has been the Group Co-Chief Operating Officer at Wunderman, Inc., since April 2018. He has been the Chairman of the Board of Wunderman, Inc., since June 2014. Since 2002, Mr. Read has been Managing Director of WPP.com. He served as Global Chief Executive Officer of Wunderman, Inc., from January 2015 to April 2018. He served as Chief Executive Officer and Strategy Director of WPP Digital at WPP plc. He contributed significantly to developing WPP's strategy, strengthening relationships with major clients and co-ordinating the activities of WPP operating companies. He served as a Director of Strategy of WPP plc since 2002. He began his career with the Royal Bank of Scotland. From 1995 to 1999, he was an Adviser in Strategy, Development and Restructuring at Booz-Allen & Hamilton. He served as Strategic Director for WPP Group, where he worked with major clients. Mr. Read worked at WPP from 1989 to 1995 in both parent company and operating company roles and also at Ogilvy & Mather and Hill & Knowlton in London. Prior to rejoining WPP in 2002, he was a Principal at Booz-Allen & Hamilton where he worked in the media and marketing areas for clients such as Universal, Viacom and the BBC. He founded and developed WPP Group Plc and WebRewards. He served as an Executive Director at WPP Group Plc. since April 2005 until February 1, 2015. He serves as Global Chairman of Blast Radius, Inc. He serves as a Director of Wunderman, OrderDynamics (formerly, eCommera Limited), Xaxis, LLC and CHI & Partners. He serves as a Trustee of the Natural History Museum Development Trust. He served as Director at NuConomy Ltd. Mr. Read served as aNuc Member of the Supervisory Board at HighCo. He served as a Member of Supervisory Board at High Co. SA. Wired ranked him as one of the Top 25 Digital Influencers in Europe in 2014 and in 2015, was named Dadi Individual of the Year. He has a degree in Economics from Cambridge University, was a Henry Fellow at Harvard University and has an M.B.A. from INSEAD.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year.
  • Mark's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the WPP management team in years:

0.5
Average Tenure
50
Average Age
  • The average tenure for the WPP management team is less than 2 years, this suggests a new team.
Management Team

Paul W. Richardson

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
60
TENURE
23.2 yrs

Mark Read

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
51
TENURE
0.5 yrs

Andrew Grant Scott

TITLE
Chief Operating Officer
AGE
49
TENURE
0.5 yrs

Stephan Pretorius

TITLE
Chief Technology Officer
TENURE
0.4 yrs

Fran Butera

TITLE
Investor Relations Director

Andrea Harris

TITLE
Group Chief Counsel & Head of Sustainability

Laurent Ezekiel

TITLE
Chief Marketing Officer & Chief Growth Officer
AGE
44
TENURE
0.3 yrs

Mark Linaugh

TITLE
Chief Talent Officer

Mary Howe

TITLE
Chief Operating Officer of Specialist Communications - North America

Vanessa Edwards

TITLE
Head of Sustainability
Board of Directors Tenure

Average tenure and age of the WPP board of directors in years:

3.8
Average Tenure
66.5
Average Age
  • The tenure for the WPP board of directors is about average.
Board of Directors

Roberto Quarta

TITLE
Chairman
COMPENSATION
£475K
AGE
69
TENURE
3.8 yrs

Paul W. Richardson

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
60

Mark Read

TITLE
CEO & Executive Director
COMPENSATION
£2M
AGE
51
TENURE
0.5 yrs

Jacques Alfred Aigrain

TITLE
Non-Executive Director
COMPENSATION
£130K
AGE
64
TENURE
5.8 yrs

John Hood

TITLE
Non-Executive Director
COMPENSATION
£110K
AGE
66
TENURE
5.2 yrs

Nicole Seligman

TITLE
Senior Independent Director
COMPENSATION
£91K
AGE
62
TENURE
2.9 yrs

Jeremy J. Bullmore

TITLE
Member of the Advisory Board
COMPENSATION
£70K
AGE
88

Bud Morten

TITLE
Member of Advisory Board
AGE
74

John Quelch

TITLE
Member of the Advisory Board
AGE
67

John Benard Jackson

TITLE
Member of Advisory Board
COMPENSATION
£45K
AGE
89
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
07. Sep 18 Buy Mark Read Individual 06. Sep 18 06. Sep 18 10,000 €12.75 €127,522
X
Management checks
We assess WPP's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. WPP has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

0WP News

Simply Wall St News

0WP Company Info

Description

WPP plc provides various communications services worldwide. The company operates through four segments: Advertising and Media Investment Management; Data Investment Management; Public Relations & Public Affairs; and Branding Consulting, Health & Wellness and Specialist Communications. The Advertising and Media Investment Management segment provides advertising services; and media planning and buying, and specialist sponsorship, and branded entertainment services. The Data Investment Management segment offers brand, consumer, media, and marketplace insight services. The Public Relations & Public Affairs segment provides corporate, consumer, financial, and brand-building services. The Branding Consulting, Health & Wellness and Specialist Communications segment is involved in consumer, corporate, and employee branding and design services, covering identity, packaging, literature, events, and training and architecture, as well as advertising, medical education, and online marketing. This segment also offers specialist communications services, such as custom media and multicultural marketing; event, sports, youth, and entertainment marketing; corporate and business-to-business; and media, technology, and production services. The company also provides specialist customer, channel, direct, field, retail, promotional, and point-of-sale services. WPP plc was founded in 1985 and is based in London, the United Kingdom.

Details
Name: WPP plc
0WP
Exchange: DB
Founded: 1985
£12,768,881,807
1,261,960,898
Website: http://www.wpp.com
Address: WPP plc
27 Farm Street,
London,
Greater London, W1J 5RJ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE WPP New Ordinary shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK WPPG.F New Ordinary shares Pink Sheets LLC US USD 02. Jan 1992
DB 0WP New Ordinary shares Deutsche Boerse AG DE EUR 02. Jan 1992
BMV WPP N New Ordinary shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE WPPL New Ordinary shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
NYSE WPP ADR EACH REPR 5 ORD New York Stock Exchange US USD 29. Dec 1987
DB A1KA87 ADR EACH REPR 5 ORD Deutsche Boerse AG DE EUR 29. Dec 1987
Number of employees
Current staff
Staff numbers
134,281
WPP employees.
Industry
Advertising
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 21:48
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.