LSE:WPP

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Executive Summary

WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, Asia Pacific, Latin America, Africa, Middle East, and Central and Eastern Europe. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has WPP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

WPP

-2.4%

GB Media

0.1%

GB Market


1 Year Return

-40.5%

WPP

-39.3%

GB Media

-14.0%

GB Market

Return vs Industry: WPP underperformed the UK Media industry which returned -39.3% over the past year.

Return vs Market: WPP underperformed the UK Market which returned -14% over the past year.


Shareholder returns

WPPIndustryMarket
7 Day-4.6%-2.4%0.1%
30 Day-0.5%-0.6%0.2%
90 Day-6.2%-7.6%-1.8%
1 Year-39.1%-40.5%-37.1%-39.3%-10.6%-14.0%
3 Year-51.8%-57.6%-36.4%-45.7%-4.5%-16.0%
5 Year-46.9%-56.1%-36.6%-50.6%22.5%-4.8%

Price Volatility Vs. Market

How volatile is WPP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPP (£6) is trading below our estimate of fair value (£8.74)

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 GB Media industry average.

PE vs Market: WPP is unprofitable, so we can't compare its PE Ratio to the UK 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 (1.4x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is WPP forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

44.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: WPP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WPP's is expected to become profitable in the next 3 years.

Revenue vs Market: WPP's revenue (0.6% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: WPP's revenue (0.6% 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 (10.5%).


Next Steps

Past Performance

How has WPP performed over the past 5 years?

-27.5%

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 27.5% 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 (1.8%).


Return on Equity

High ROE: WPP has a negative Return on Equity (-38.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is WPP's financial position?


Financial Position Analysis

Short Term Liabilities: WPP's short term assets (£12.4B) exceed its short term liabilities (£11.8B).

Long Term Liabilities: WPP's short term assets (£12.4B) exceed its long term liabilities (£8.4B).


Debt to Equity History and Analysis

Debt Level: WPP's debt to equity ratio (95.1%) is considered high.

Reducing Debt: WPP's debt to equity ratio has increased from 60.9% to 95.1% over the past 5 years.

Debt Coverage: WPP's debt is well covered by operating cash flow (28.7%).

Interest Coverage: Insufficient data to determine if WPP's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.34%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WPP's dividend (3.34%) is higher than the bottom 25% of dividend payers in the UK market (1.86%).

High Dividend: WPP's dividend (3.34%) is low compared to the top 25% of dividend payers in the UK market (5.14%).


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: WPP is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WPP's dividends in 3 years are forecast to be covered by earnings (58.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Mark Read (53 yo)

2yrs

Tenure

UK£2,594,000

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. He has been the ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD3.36M) is about average for companies of similar size in the UK market ($USD3.25M).

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Read
CEO & Executive Director2yrsUK£2.59m0.024%
£ 1.8m
Andrew Grant Scott
Chief Operating Officer2yrsno datano data
Stephan Pretorius
Chief Technology Officer1.92yrsno datano data
Fran Butera
Investor Relations Directorno datano datano data
Andrea Harris
Group Chief Counsel & Head of Sustainabilityno datano datano data
Chris Wade
Chief Communications Directorno datano datano data
Laurent Ezekiel
Chief Marketing Officer & Chief Growth Officer1.75yrsno datano data
Jacqueline Canney
Global Chief People Officer1.25yrsno datano data
John O'Keeffe
Global Chief Creative Officerno datano datano data
Mary Howe
Chief Operating Officer of Specialist Communications - North Americano datano datano data
Vanessa Edwards
Head of Sustainabilityno datano datano data
Juliana Yeh
Head of Corporate Communications - Asia Pacific4.5yrsno datano data

2.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: WPP's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Read
CEO & Executive Director2yrsUK£2.59m0.024%
£ 1.8m
John Benard Jackson
Member of Advisory Boardno dataUK£45.00kno data
Jeremy J. Bullmore
Member of the Advisory Boardno dataUK£70.00kno data
Stanley Morten
Member of Advisory Boardno datano datano data
John Quelch
Member of the Advisory Boardno datano datano data
Roberto Quarta
Independent Chairman5.25yrsUK£500.00k0.0072%
£ 525.0k
Jacques Alfred Aigrain
Independent Non-Executive Director7.33yrsUK£145.00k0.0028%
£ 204.2k
Sally Susman
Independent Non-Executive Director7.33yrsUK£98.00k0.00041%
£ 29.9k
Nicole Seligman
Senior Independent Director4.42yrsUK£145.00k0.00072%
£ 52.5k
Richard Rivers
Member of the Advisory Boardno datano datano data
Jasmine Whitbread
Independent Non-Executive Director1yrUK£37.00k0.00027%
£ 19.7k
Cuneyd Zapsu
Member of the Advisory Boardno datano datano data

4.8yrs

Average Tenure

67.5yo

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 plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WPP plc
  • Ticker: WPP
  • Exchange: LSE
  • Founded: 2012
  • Industry: Advertising
  • Sector: Media
  • Market Cap: UK£7.292b
  • Shares outstanding: 1.22b
  • 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 ORDUSUSDDec 1987
0WPADB (Deutsche Boerse AG)ADR EACH REPR 5 ORDDEEURDec 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

Biography

WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, Asia Pacific, Latin Amer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 03:20
End of Day Share Price2020/09/18 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.