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

The Pebble Group Plc

Brave Bison Group Plc

S4 Capital Plc

Team Internet Group Plc

M&C Saatchi plc

The Mission Group Plc

WPP Plc

Dianomi Plc

Next 15 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 1.19% over the last 5 years

Negative results in Dec 25

ROCE(HY) Lowest at -7.15%
PRE-TAX PROFIT(Q) At GBP 739 MM has Fallen at -39.08%
DIVIDEND PER SHARE(HY) Lowest at GBP 1.29

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 -47.50%, its profits have fallen by -33.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -47.50% 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

-47.5%

-1.62

47.97%

FTSE 100

17.87%

1.52

11.77%

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)

1.19%

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

1.17

EV to EBIT

4.29

EV to EBITDA

3.17

EV to Capital Employed

1.09

EV to Sales

0.40

PEG Ratio

Dividend Yield

542.91%

ROCE (Latest)

25.29%

ROE (Latest)

26.32%

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.39% (YoY

CASH AND EQV(HY)

Highest at GBP 2,694 MM

-10What is not working for the Company

ROCE(HY)

Lowest at -7.15%

PRE-TAX PROFIT(Q)

At GBP 739 MM has Fallen at -39.08%

DIVIDEND PER SHARE(HY)

Lowest at GBP 1.29

NET PROFIT(Q)

Lowest at GBP -17,731 MM

EPS(Q)

Lowest at GBP -0.24

Here's what is working for WPP Plc

Cash and Eqv

Highest at GBP 2,694 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.39% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for WPP Plc

Net Profit

At GBP -17,731 MM has Fallen at -2,922.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Pre-Tax Profit

At GBP 739 MM has Fallen at -39.08%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP -17,731 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP -0.24

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Dividend per share

Lowest at GBP 1.29

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Non Operating Income

Highest at GBP 2.64 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income