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WPP

WPPLSE:WPP Stock Report

Market Cap

UK£11.7b

7D

2.9%

1Y

68.5%

Updated

25 Sep, 2021

Data

Company Financials +
WPP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends4/6

WPP Overview

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.

WPP Competitors

Price History & Performance

Summary of all time highs, changes and price drops for WPP
Historical stock prices
Current Share PriceUK£9.91
52 Week HighUK£5.86
52 Week LowUK£10.22
Beta1.34
1 Month Change1.43%
3 Month Change-1.15%
1 Year Change68.48%
3 Year Change-11.87%
5 Year Change-45.37%
Change since IPO1,882.00%

Recent News & Updates

Sep 23
WPP (LON:WPP) Has A Pretty Healthy Balance Sheet

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...

Shareholder Returns

WPPGB MediaGB Market
7D2.9%1.1%0.6%
1Y68.5%69.2%23.4%

Return vs Industry: WPP matched the UK Media industry which returned 69.2% over the past year.

Return vs Market: WPP exceeded the UK Market which returned 23.4% over the past year.

Price Volatility

Is WPP's price volatile compared to industry and market?
WPP volatility
WPP Beta1.34
Industry Beta1.03
Market Beta1

Stable Share Price: WPP is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WPP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985104,000Mark Readhttps://www.wpp.com

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

How do WPP's earnings and revenue compare to its market cap?
WPP fundamental statistics
Market CapUK£11.69b
Earnings (TTM)UK£488.10m
Revenue (TTM)UK£12.55b

24.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WPP income statement (TTM)
RevenueUK£12.55b
Cost of RevenueUK£10.38b
Gross ProfitUK£2.17b
ExpensesUK£1.69b
EarningsUK£488.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin17.31%
Net Profit Margin3.89%
Debt/Equity Ratio106.0%

How did WPP perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

66%

Payout Ratio

Does WPP pay a reliable dividends?

See WPP dividend history and benchmarks
When do you need to buy WPP by to receive an upcoming dividend?
WPP dividend dates
Ex Dividend DateOct 14 2021
Dividend Pay DateNov 01 2021
Days until Ex dividend18 days
Days until Dividend pay date36 days

Does WPP pay a reliable dividends?

See WPP dividend history and benchmarks

Valuation

Is WPP 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 (£9.91) is trading below our estimate of fair value (£21.85)

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


Price To Earnings Ratio

PE vs Industry: WPP's PE Ratio (24x) is in line with the UK Media industry average.

PE vs Market: WPP is poor value based on its PE Ratio (24x) compared to the UK market (23.4x).


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).


Future Growth

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

13.0%

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 slower than the UK market (13.2% 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 (5.4% 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%).


Past Performance

How has WPP performed over the past 5 years?

-47.6%

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.


Financial Health

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).


Balance Sheet


Dividend

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

2.67%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 25 2021Ex Dividend DateOct 14 2021Dividend Pay DateNov 01 202118 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WPP's dividend (2.67%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: WPP's dividend (2.67%) is low compared to the top 25% of dividend payers in the UK market (3.93%).


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).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Mark Read (54 yo)

3yrs

Tenure

UK£2,078,000

Compensation

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 ($USD2.84M) is about average for companies of similar size in the UK market ($USD3.77M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WPP's management team is considered experienced (2.9 years average tenure).


Board Members

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 plc's employee growth, exchange listings and data sources


Key Information

  • Name: WPP plc
  • Ticker: WPP
  • Exchange: LSE
  • Founded: 1985
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£11.691b
  • Shares outstanding: 1.18b
  • Website: https://www.wpp.com

Number of Employees


Location

  • WPP plc
  • Sea Containers
  • 18 Upper Ground
  • London
  • Greater London
  • SE1 9GL
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 17:57
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.