WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£9.92|
|52 Week High||UK£5.88|
|52 Week Low||UK£10.22|
|1 Month Change||3.01%|
|3 Month Change||3.83%|
|1 Year Change||48.79%|
|3 Year Change||-4.77%|
|5 Year Change||-41.80%|
|Change since IPO||1,883.60%|
Recent News & Updates
WPP (LON:WPP) Has A Pretty Healthy Balance Sheet
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
|WPP||GB Media||GB Market|
Return vs Industry: WPP underperformed the UK Media industry which returned 50.5% over the past year.
Return vs Market: WPP exceeded the UK Market which returned 23.2% over the past year.
Stable Share Price: WPP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: WPP's weekly volatility (2%) has been stable over the past year.
About the Company
WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. It engages in the planning and creation of marketing and branding campaigns; design and production of advertisements across all media; and provision of media buying services, including strategy and business development, media investment, data and technology, and content.
WPP Fundamentals Summary
|WPP fundamental statistics|
Is WPP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WPP income statement (TTM)|
|Cost of Revenue||UK£10.38b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.42|
|Net Profit Margin||3.89%|
How did WPP perform over the long term?See historical performance and comparison
2.7%Current Dividend Yield
Is WPP undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WPP (£9.92) is trading below our estimate of fair value (£24.03)
Significantly Below Fair Value: WPP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WPP is good value based on its PE Ratio (23.9x) compared to the UK Media industry average (31.7x).
PE vs Market: WPP is poor value based on its PE Ratio (23.9x) compared to the UK market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: WPP is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: WPP is overvalued based on its PB Ratio (2.6x) compared to the GB Media industry average (1.9x).
How is WPP forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WPP's forecast earnings growth (13% per year) is above the savings rate (0.9%).
Earnings vs Market: WPP's earnings (13% per year) are forecast to grow faster than the UK market (12.9% per year).
High Growth Earnings: WPP's earnings are forecast to grow, but not significantly.
Revenue vs Market: WPP's revenue (2% per year) is forecast to grow slower than the UK market (5% per year).
High Growth Revenue: WPP's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WPP's Return on Equity is forecast to be low in 3 years time (16.6%).
How has WPP performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WPP has high quality earnings.
Growing Profit Margin: WPP became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WPP's earnings have declined by 47.6% per year over the past 5 years.
Accelerating Growth: WPP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WPP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (13.1%).
Return on Equity
High ROE: WPP's Return on Equity (11.6%) is considered low.
How is WPP's financial position?
Financial Position Analysis
Short Term Liabilities: WPP's short term assets (£13.9B) do not cover its short term liabilities (£14.1B).
Long Term Liabilities: WPP's short term assets (£13.9B) exceed its long term liabilities (£7.3B).
Debt to Equity History and Analysis
Debt Level: WPP's debt to equity ratio (106%) is considered high.
Reducing Debt: WPP's debt to equity ratio has increased from 71.2% to 106% over the past 5 years.
Debt Coverage: WPP's debt is well covered by operating cash flow (49%).
Interest Coverage: WPP's interest payments on its debt are well covered by EBIT (4.1x coverage).
What is WPP current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WPP's dividend (2.67%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: WPP's dividend (2.67%) is low compared to the top 25% of dividend payers in the UK market (4.03%).
Stability and Growth of Payments
Stable Dividend: WPP's dividend payments have been volatile in the past 10 years.
Growing Dividend: WPP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (66.1%), WPP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WPP's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Read (54 yo)
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. Since 2002, Mr....
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD2.87M) is about average for companies of similar size in the UK market ($USD3.85M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: WPP's management team is considered experienced (3.1 years average tenure).
Experienced Board: WPP's board of directors are considered experienced (5.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
WPP plc's employee growth, exchange listings and data sources
- Name: WPP plc
- Ticker: WPP
- Exchange: LSE
- Founded: 1985
- Industry: Advertising
- Sector: Media
- Market Cap: UK£11.649b
- Shares outstanding: 1.17b
- Website: https://www.wpp.com
Number of Employees
- WPP plc
- Sea Containers
- 18 Upper Ground
- Greater London
- SE1 9GL
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/19 21:35|
|End of Day Share Price||2021/10/19 00:00|
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.