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WPP Plc

  • Market Cap: Mid Cap
  • Industry: Media & Entertainment
  • ISIN: JE00B8KF9B49
  • LON: WPP
GBP
3.85
0.02 (0.52%)

Sep 22

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Brave Bison Group Plc
S4 Capital Plc
Dianomi Plc
M&C Saatchi plc
The Mission Group Plc
The Pebble Group Plc
Next 15 Group Plc
WPP Plc
XLMedia Plc
Team Internet Group Plc
Nexxen International Ltd.

Why is WPP Plc ?

1
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
2
Poor long term growth as Net Sales has grown by an annual rate of 2.45% and Operating profit at 1.19% over the last 5 years
3
With a fall in Operating Profit of -3.29%, the company declared Very Negative results in Jun 26
  • The company has declared negative results for the last 3 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at GBP 2,012 MM
  • NET PROFIT(Q) At GBP 53.75 MM has Fallen at -65.66%
  • ROCE(HY) Lowest at -8.32%
4
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 7.07%, its profits have fallen by -33.5%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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
7.07%
-1.22
56.10%
FTSE 100
16.06%
1.36
11.82%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
2.45%
EBIT Growth (5y)
1.19%
EBIT to Interest (avg)
4.03
Debt to EBITDA (avg)
1.74
Net Debt to Equity (avg)
0.56
Sales to Capital Employed (avg)
1.65
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.15%
ROCE (avg)
20.96%
ROE (avg)
22.67%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
1.08
EV to EBIT
4.12
EV to EBITDA
3.04
EV to Capital Employed
1.04
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
295.98%
ROCE (Latest)
25.29%
ROE (Latest)
26.32%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

3What is working for the Company
NET PROFIT(HY)

Higher at GBP 53.75 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 426.14%

-20What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at GBP 2,012 MM

NET PROFIT(Q)

At GBP 53.75 MM has Fallen at -65.66%

ROCE(HY)

Lowest at -8.32%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.28 times

INTEREST COVERAGE RATIO(Q)

Lowest at 333.33

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 13.14% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 185.2 %

DIVIDEND PER SHARE(HY)

Lowest at GBP 1.28

NET SALES(Q)

Lowest at GBP 6,373 MM

OPERATING PROFIT(Q)

Lowest at GBP 580 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.1 %

PRE-TAX PROFIT(Q)

Lowest at GBP 231 MM

Here's what is working for WPP Plc

Dividend Payout Ratio
Highest at 426.14%
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

Net Profit
At GBP 53.75 MM has Fallen at -65.66%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Cash Flow
Lowest at GBP 2,012 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)

Interest Coverage Ratio
Lowest at 333.33
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio
Lowest at 1.28 times and Fallen
In each half year in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales
Lowest at GBP 6,373 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit
Lowest at GBP 580 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin
Lowest at 9.1 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at GBP 231 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Debt-Equity Ratio
Highest at 185.2 %
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 1.28
in the last five years
MOJO Watch
Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio
Lowest at 0%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Grown by 13.14% (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

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