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WPP

WPP LSE:WPP Stock Report

Last Price

UK£7.61

Market Cap

UK£8.2b

7D

-0.8%

1Y

-23.8%

Updated

26 Sep, 2022

Data

Company Financials +
WPP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends4/6

WPP Stock 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£7.61
52 Week HighUK£12.32
52 Week LowUK£7.20
Beta1.26
1 Month Change2.37%
3 Month Change-8.16%
1 Year Change-23.83%
3 Year Change-25.23%
5 Year Change-45.36%
Change since IPO1,422.40%

Recent News & Updates

Sep 07
WPP (LON:WPP) Has Announced That It Will Be Increasing Its Dividend To £0.15

WPP (LON:WPP) Has Announced That It Will Be Increasing Its Dividend To £0.15

WPP plc's ( LON:WPP ) dividend will be increasing from last year's payment of the same period to £0.15 on 1st of...

Aug 24
WPP (LON:WPP) Has Announced That It Will Be Increasing Its Dividend To £0.15

WPP (LON:WPP) Has Announced That It Will Be Increasing Its Dividend To £0.15

WPP plc's ( LON:WPP ) periodic dividend will be increasing on the 1st of November to £0.15, with investors receiving...

Aug 09
WPP (LON:WPP) Is Increasing Its Dividend To £0.15

WPP (LON:WPP) Is Increasing Its Dividend To £0.15

The board of WPP plc ( LON:WPP ) has announced that it will be increasing its dividend by 20% on the 1st of November to...

Shareholder Returns

WPPGB MediaGB Market
7D-0.8%-4.0%-3.2%
1Y-23.8%-27.6%-14.6%

Return vs Industry: WPP exceeded the UK Media industry which returned -27.4% over the past year.

Return vs Market: WPP underperformed the UK Market which returned -14.4% over the past year.

Price Volatility

Is WPP's price volatile compared to industry and market?
WPP volatility
WPP Average Weekly Movement4.8%
Media Industry Average Movement5.2%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: WPP is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WPP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1985115,000Mark 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 offers plans and creates marketing and branding campaigns; designs and produces advertisements across various media; and provides media buying services, such as 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£8.22b
Earnings (TTM)UK£642.90m
Revenue (TTM)UK£13.42b

12.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WPP income statement (TTM)
RevenueUK£13.42b
Cost of RevenueUK£11.11b
Gross ProfitUK£2.31b
Other ExpensesUK£1.67b
EarningsUK£642.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.60
Gross Margin17.24%
Net Profit Margin4.79%
Debt/Equity Ratio115.0%

How did WPP perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

60%

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 13 2022
Dividend Pay DateNov 01 2022
Days until Ex dividend16 days
Days until Dividend pay date35 days

Does WPP pay a reliable dividends?

See WPP dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is WPP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WPP?

Other financial metrics that can be useful for relative valuation.

WPP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA9.2x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does WPP's PE Ratio compare to its peers?

WPP PE Ratio vs Peers
The above table shows the PE ratio for WPP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.5x
INF Informa
33.6x45.6%UK£7.6b
FOUR 4imprint Group
20.2x10.6%UK£996.0m
YOU YouGov
83.4x37.2%UK£1.1b
TRMR Tremor International
8.9x21.2%UK£453.0m
WPP WPP
12.8x15.9%UK£8.2b

Price-To-Earnings vs Peers: WPP is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (36.5x).


Price to Earnings Ratio vs Industry

How does WPP's PE Ratio compare vs other companies in the GB Media Industry?

Price-To-Earnings vs Industry: WPP is good value based on its Price-To-Earnings Ratio (12.8x) compared to the UK Media industry average (18.9x)


Price to Earnings Ratio vs Fair Ratio

What is WPP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WPP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: WPP is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).


Share Price vs Fair Value

What is the Fair Price of WPP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WPP (£7.61) is trading below our estimate of fair value (£23.19)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPP's forecast earnings growth (15.9% per year) is above the savings rate (0.9%).

Earnings vs Market: WPP's earnings (15.9% per year) are forecast to grow faster than the UK market (8.9% per year).

High Growth Earnings: WPP's earnings are forecast to grow, but not significantly.

Revenue vs Market: WPP's revenue (1.9% per year) is forecast to grow slower than the UK market (4.5% per year).

High Growth Revenue: WPP's revenue (1.9% 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 high in 3 years time (28.3%)


Discover growth companies

Past Performance

How has WPP performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-35.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WPP has high quality earnings.

Growing Profit Margin: WPP's current net profit margins (4.8%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: WPP's earnings have declined by 35.2% per year over the past 5 years.

Accelerating Growth: WPP's earnings growth over the past year (31.1%) exceeds its 5-year average (-35.2% per year).

Earnings vs Industry: WPP earnings growth over the past year (31.1%) exceeded the Media industry 29.9%.


Return on Equity

High ROE: WPP's Return on Equity (17.2%) is considered low.


Discover strong past performing companies

Financial Health

How is WPP's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WPP's short term assets (£13.6B) do not cover its short term liabilities (£14.9B).

Long Term Liabilities: WPP's short term assets (£13.6B) exceed its long term liabilities (£7.9B).


Debt to Equity History and Analysis

Debt Level: WPP's net debt to equity ratio (73.4%) is considered high.

Reducing Debt: WPP's debt to equity ratio has increased from 76.3% to 115% over the past 5 years.

Debt Coverage: WPP's debt is not well covered by operating cash flow (18%).

Interest Coverage: WPP's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.43%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 27 2022Ex Dividend DateOct 13 2022Dividend Pay DateNov 01 202219 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

WPP Dividend Yield vs Market
How does WPP dividend yield compare to the market?
SegmentDividend Yield
Company (WPP)4.4%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)5.9%
Industry Average (Media)2.7%
Analyst forecast in 3 Years (WPP)5.4%

Notable Dividend: WPP's dividend (4.43%) is higher than the bottom 25% of dividend payers in the UK market (2.06%).

High Dividend: WPP's dividend (4.43%) is low compared to the top 25% of dividend payers in the UK market (5.8%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.1%), WPP's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (59.6%), WPP's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

3.9yrs

Average management tenure


CEO

Mark Read (55 yo)

4yrs

Tenure

UK£3,799,000

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

Mark Read's Compensation vs WPP Earnings
How has Mark Read's remuneration changed compared to WPP's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

UK£643m

Mar 31 2022n/an/a

UK£640m

Dec 31 2021UK£4mUK£1m

UK£638m

Sep 30 2021n/an/a

UK£564m

Jun 30 2021n/an/a

UK£490m

Mar 31 2021n/an/a

-UK£1b

Dec 31 2020UK£2mUK£910k

-UK£3b

Jun 30 2020n/an/a

-UK£3b

Mar 31 2020n/an/a

-UK£879m

Dec 31 2019UK£3mUK£975k

UK£848m

Jun 30 2019n/an/a

UK£533m

Mar 31 2019n/an/a

UK£735m

Dec 31 2018UK£2mUK£325k

UK£698m

Sep 30 2018n/an/a

UK£1b

Jun 30 2018n/an/a

UK£2b

Mar 31 2018n/an/a

UK£2b

Dec 31 2017n/an/a

UK£2b

Sep 30 2017n/an/a

UK£2b

Jun 30 2017n/an/a

UK£2b

Mar 31 2017n/an/a

UK£2b

Dec 31 2016n/an/a

UK£1b

Sep 30 2016n/an/a

UK£1b

Jun 30 2016n/an/a

UK£840m

Mar 31 2016n/an/a

UK£1b

Dec 31 2015UK£2mUK£37k

UK£1b

Compensation vs Market: Mark's total compensation ($USD4.11M) is about average for companies of similar size in the UK market ($USD3.37M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WPP's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: WPP's board of directors are considered experienced (3.5 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

LSE:WPP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Aug 22BuyUK£8,078Thomas IlubeIndividual1,000UK£8.08
28 Feb 22BuyUK£30,490Jasmine WhitbreadIndividual2,902UK£10.51
28 Feb 22BuyUK£10,332Thomas IlubeIndividual1,000UK£10.33

Ownership Breakdown

What is the ownership structure of WPP?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,155,8650.1%
General Public458,935,34142.5%
Institutions620,891,19257.4%

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


Top Shareholders

Top 25 shareholders own 43.73% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.95%
BlackRock, Inc.
85,962,386£654.3m-0.55%0.02%
4.85%
Wellington Management Group LLP
52,478,431£399.5m1%0.08%
4.58%
The Vanguard Group, Inc.
49,495,407£376.8m0.77%0.01%
3.49%
Harris Associates L.P.
37,709,446£287.0m0%0.41%
2.63%
Norges Bank Investment Management
28,430,574£216.4m0%0.03%
2.14%
T. Rowe Price Group, Inc.
23,091,712£175.8m2.41%0.02%
1.95%
Jupiter Fund Management Plc
21,045,324£160.2m1.05%0.59%
1.84%
Schroder Investment Management Limited
19,875,747£151.3m0%0.13%
1.61%
J O Hambro Capital Management Limited
17,449,700£132.8m0%0.86%
1.51%
abrdn plc
16,301,903£124.1m0.77%0.14%
1.23%
Amundi Asset Management
13,312,773£101.3m3.39%0.03%
1.06%
J.P. Morgan Asset Management, Inc.
11,501,099£87.5m-2.49%0.02%
1.04%
Fidelity International Ltd
11,239,700£85.6m0%0.05%
0.93%
RWC Partners Limited
10,004,354£76.2m0%0.83%
0.88%
FMR LLC
9,515,406£72.4m-0.87%0.01%
0.76%
Capital Research and Management Company
8,199,123£62.4m0.06%no data
0.71%
Evenlode Investment Management Limited
7,634,107£58.1m0%1.27%
0.63%
M&G Investment Management Limited
6,817,719£51.9m-3.71%0.13%
0.61%
Dimensional Fund Advisors LP
6,615,501£50.4m0.47%0.01%
0.58%
Geode Capital Management, LLC
6,316,146£48.1m-1.45%0.01%
0.58%
Fiduciary Management, Inc.
6,313,600£48.1m8.4%0.42%
0.56%
Franklin Resources, Inc.
6,092,315£46.4m-0.18%0.02%
0.55%
Mondrian Investment Partners Limited
5,972,886£45.5m16.85%0.39%
0.53%
Massachusetts Financial Services Company
5,682,619£43.3m-1.12%0.01%
0.52%
Royal London Asset Management Limited
5,639,942£42.9m0%0.09%

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
  • Implied Market Cap: UK£8.222b
  • Shares outstanding: 1.08b
  • Website: https://www.wpp.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPPNYSE (New York Stock Exchange)ADR EACH REPR 5 ORD SHSUSUSDDec 1987
0WPADB (Deutsche Boerse AG)ADR EACH REPR 5 ORD SHSDEEURDec 1987
WPPLSE (London Stock Exchange)YesNew Ordinary sharesGBGBPJan 1992
0WPDB (Deutsche Boerse AG)YesNew Ordinary sharesDEEURJan 1992
WPPG.FOTCPK (Pink Sheets LLC)YesNew Ordinary sharesUSUSDJan 1992
WPPLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary sharesGBGBPJan 1992
WPP NBMV (Bolsa Mexicana de Valores)YesNew Ordinary sharesMXMXNJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.