WPP Plc (WPP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dianomi Plc

The Pebble Group Plc

Brave Bison Group Plc

Next 15 Group Plc

M&C Saatchi plc

Team Internet Group Plc

S4 Capital Plc

WPP Plc

The Mission Group Plc

XLMedia Plc

Nexxen International Ltd.

Why is WPP Plc ?

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 4.22

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 4.22

Poor long term growth as Net Sales has grown by an annual rate of 2.45% and Operating profit at 0.41% over the last 5 years

With a fall in Operating Profit of -7.52%, the company declared Very Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at GBP 2,054.3 MM
NET PROFIT(Q) At GBP 156.54 MM has Fallen at -45.89%
RAW MATERIAL COST(Y) Grown by 15.87% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -63.85%, its profits have fallen by -38.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -63.85% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is WPP Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

WPP Plc

-63.59%

-1.76

46.42%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.45%

EBIT Growth (5y)

0.41%

EBIT to Interest (avg)

4.22

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.61

Tax Ratio

40.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

25.89%

ROE (avg)

22.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.15

EV to EBIT

4.43

EV to EBITDA

3.24

EV to Capital Employed

1.08

EV to Sales

0.40

PEG Ratio

Dividend Yield

1168.91%

ROCE (Latest)

24.34%

ROE (Latest)

24.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 183.82%

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 2,054.3 MM

NET PROFIT(Q)

At GBP 156.54 MM has Fallen at -45.89%

RAW MATERIAL COST(Y)

Grown by 15.87% (YoY

CASH AND EQV(HY)

Lowest at GBP 1,437 MM

DEBT-EQUITY RATIO (HY)

Highest at 168.05 %

DIVIDEND PER SHARE(HY)

Lowest at GBP 1.31

NET SALES(Q)

Lowest at GBP 6,663 MM

OPERATING PROFIT(Q)

Lowest at GBP 617 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.26 %

PRE-TAX PROFIT(Q)

Lowest at GBP 253 MM

Here's what is working for WPP Plc

Dividend Payout Ratio

Highest at 183.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for WPP Plc

Pre-Tax Profit

At GBP 253 MM has Fallen at -42.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 156.54 MM has Fallen at -45.89%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Cash Flow

Lowest at GBP 2,054.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Sales

Lowest at GBP 6,663 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 617 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 9.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 253 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Cash and Eqv

Lowest at GBP 1,437 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 168.05 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend per share

Lowest at GBP 1.31

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Raw Material Cost

Grown by 15.87% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at GBP 0.6 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income