WPP (WPP) AI Stock Analysis

• Market Cap: £2.93B
• Dividend Yield: 10.69%
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.23
• Revenue Growth: -4.54%
• EPS Growth: 86.79%
• Country: UK
• Employees: 108,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 1,078,802,400
• 10 Day Avg. Volume: 4,215,497
• 30 Day Avg. Volume: 4,298,428
• PEG Ratio: 0.04
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £379.29
• Price Target Upside: 27.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 326.00p ▲(9.21% Upside)

WPP's overall score is driven by solid financial performance and attractive valuation, despite technical indicators suggesting a bearish trend. Corporate events show investor confidence but highlight challenges in revenue growth. The company needs to focus on strategic initiatives to enhance growth and manage leverage effectively.

Positive Factors

Cash Flow Management

Strong cash flow management enhances WPP's ability to invest in growth opportunities and sustain operations, providing a buffer against economic fluctuations.

Operational Efficiency

High EBIT and EBITDA margins indicate effective cost management and operational efficiency, contributing to sustained profitability and competitive positioning.

Return on Equity

Improved return on equity signifies effective use of shareholder funds to generate profits, enhancing investor confidence and supporting long-term growth.

Negative Factors

Revenue Growth

Negative revenue growth indicates challenges in expanding market share and customer base, which could impact long-term strategic objectives and competitiveness.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth and respond to market changes.

Net Profit Margin

Low net profit margin, despite improvement, suggests challenges in converting revenue into profit, which could hinder long-term financial health and shareholder returns.

WPP Business Overview & Revenue Model

Company Description

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. The company also offers public relations advisory services to clients who are seeking to communicate with a range of stakeholders from consumers to governments and the business and financial communities; and specialist agency services. WPP plc was founded in 1985 and is based in London, the United Kingdom.

How the Company Makes Money

WPP generates revenue primarily through its service fees for advertising and marketing services provided to clients across various industries. The company's revenue model includes project-based fees, retainers, and performance-based incentives. Key revenue streams come from digital marketing services, traditional advertising, media buying, and public relations. WPP has established significant partnerships with large corporations and brands, which contribute to consistent revenue through long-term contracts. Additionally, the company's investments in technology and data analytics enhance its service offerings, driving growth in digital and programmatic advertising, which are increasingly vital revenue sources.

WPP Financial Statement Overview

Summary

WPP demonstrates solid operational efficiency and cash flow management, with improving profit margins and cash conversion. However, growth in revenue has stagnated, and the balance sheet reflects high leverage which may pose a risk if not managed carefully. The company needs to focus on enhancing revenue growth while managing its debt levels.

Income Statement

WPP showed strong EBIT and EBITDA margins at 8.99% and 13.18% respectively in 2024, indicative of good operational efficiency. However, the net profit margin improved to 3.68% from a low base, reflecting challenges in translating revenue into net income. Revenue growth was slightly negative in 2024, signaling a need to enhance top-line performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.83, suggesting significant leverage. However, return on equity improved to 15.60% in 2024, indicating effective use of equity to generate profit. The equity ratio is relatively low at 13.63%, highlighting a potential risk with high liabilities compared to assets.

Cash Flow

WPP's free cash flow grew by 14.81% in 2024, showing strong cash generation. The operating cash flow to net income ratio improved, indicating better cash conversion, while the free cash flow to net income ratio is robust, emphasizing strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.18B	14.74B	14.84B	14.43B	12.80B	12.00B
Gross Profit	2.25B	2.45B	2.52B	2.54B	2.20B	2.01B
EBITDA	1.51B	1.90B	1.91B	2.03B	1.78B	-1.85B
Net Income	381.00M	542.00M	110.40M	682.70M	637.70M	-2.97B
Balance Sheet
Total Assets	23.39B	25.51B	26.62B	28.82B	27.87B	36.17B
Cash, Cash Equivalents and Short-Term Investments	1.44B	2.64B	2.22B	2.49B	3.88B	12.90B
Total Debt	6.75B	6.35B	6.88B	7.18B	6.83B	15.75B
Total Liabilities	19.99B	21.77B	22.79B	24.66B	23.80B	31.12B
Stockholders Equity	3.16B	3.48B	3.38B	3.68B	3.62B	4.73B
Cash Flow
Free Cash Flow	763.00M	1.17B	1.02B	477.60M	1.74B	1.78B
Operating Cash Flow	912.00M	1.41B	1.24B	700.90M	2.03B	2.05B
Investing Cash Flow	102.00M	278.00M	-380.40M	-408.90M	-638.40M	-163.40M
Financing Cash Flow	-1.73B	-989.00M	-904.70M	-1.91B	-2.06B	-250.50M

WPP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 298.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPP, the sentiment is Negative. The current price of 298.5 is below the 20-day moving average (MA) of 299.77, below the 50-day MA of 321.36, and below the 200-day MA of 444.90, indicating a bearish trend. The MACD of -6.74 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 47.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WPP.

WPP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	81 Outperform	£1.10B	11.86	86.56%	9.87%	-2.60%	3.10%
WPP	71 Outperform	£2.93B	7.69	11.44%	10.69%	-4.54%	86.79%
SAA	65 Neutral	£149.09M	19.46	18.23%	1.16%	-21.19%	-29.54%
NFG	63 Neutral	£300.25M	18.90	9.53%	5.23%	-5.98%	-74.21%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
YOU	59 Neutral	£299.37M	22.16	7.16%	3.71%	15.99%	―
SFOR	48 Neutral	£146.52M	-0.44	-45.75%	6.34%	-14.27%	-15466.67%

WPP Corporate Events

WPP Successfully Prices €1 Billion Bond, Reflecting Strong Investor Confidence

WPP has successfully priced a €1,000 million, 5.5-year senior unsecured fixed-rate bond issuance with an annual coupon of 3.625%. The issuance was significantly oversubscribed, with an order book exceeding €2.9 billion, indicating strong investor confidence in WPP’s credit profile and market position. The proceeds will be used for general corporate purposes, including refinancing existing debt, aligning with WPP’s strategic capital allocation and financing plans.

WPP Executives Acquire Shares Under Performance Plans

WPP announced the vesting of share awards for its executives under the 2022 Executive Performance Share Plan and the WPP Stock Plan 2018. CEO Cindy Rose and CFO Joanne Wilson acquired ordinary shares, with a portion automatically sold to cover statutory withholding liabilities. These transactions, conducted on the London Stock Exchange, highlight WPP’s ongoing commitment to aligning executive compensation with performance, potentially impacting stakeholder perceptions and market positioning.

WPP Announces Total Voting Rights and Share Capital Update

WPP has announced that as of November 28, 2025, its issued share capital consists of 1,091,394,251 ordinary shares, with 12,591,893 shares held in treasury. This results in a total of 1,078,802,358 voting rights, which shareholders can use to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

WPP Executives Acquire Shares, Signaling Confidence in Growth

WPP plc announced the purchase of ordinary shares by two of its key executives, Chair Philip Jansen and CEO Cindy Rose, on the London Stock Exchange. This transaction, part of the company’s regulatory obligations, reflects confidence in WPP’s market position and potential growth, potentially impacting stakeholder perceptions positively.

WPP Announces Total Voting Rights and Share Capital Update

WPP PLC announced that as of 31 October 2025, its issued share capital comprised 1,091,394,251 ordinary shares, with 12,591,893 held in Treasury, resulting in 1,078,802,358 total voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they manage their interests in WPP.

WPP Faces Revenue Decline, Initiates Strategic Review for Growth

WPP’s third-quarter 2025 trading update reveals a challenging period with revenue down 8.4% year-over-year and a like-for-like decline of 3.5%. The company has revised its full-year organic growth guidance to a decline of 5.5% to 6.0% and is undergoing a strategic review to return to growth. CEO Cindy Rose has outlined plans to simplify and integrate offerings, enhance execution, and expand into enterprise and technology solutions. Key initiatives include leadership changes, an extended partnership with Google, and the launch of WPP Open Pro, an AI platform for marketing. Despite the current downturn, WPP is optimistic about building a high-performance culture and improving financial performance, with further details to be shared in the new year.

WPP Launches WPP Open Pro: A New AI Marketing Platform

WPP has launched WPP Open Pro, an advanced AI marketing platform designed to allow brands to independently plan, create, and publish campaigns. This new platform is set to expand WPP’s reach in the global advertising market by providing brands of all sizes with access to WPP’s AI capabilities, thus transforming marketing delivery and expanding the company’s addressable market. By integrating strategy, content creation, and performance optimization, WPP Open Pro offers a comprehensive solution that caters to both large enterprises and smaller businesses, enabling them to rapidly generate and deploy campaigns with consistency and compliance.

WPP Announces Board Committee Membership Change

WPP has announced a change in its Board Committee membership, with Keith Weed joining the Nomination and Governance Committee effective 15 October 2025. This change reflects WPP’s ongoing efforts to strengthen its governance structure, potentially impacting its strategic direction and stakeholder relations.

WPP Grants Conditional Share Award to CEO Cindy Rose

WPP has granted a conditional share award to its CEO, Cindy Rose, under the 2022 Executive Performance Share Plan. This award compensates for incentives she forfeited upon leaving her previous employer and is set to vest in tranches from December 2025 to September 2030, contingent on her continued employment.