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WPP (GB:WPP)
LSE:WPP
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WPP (WPP) AI Stock Analysis

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GB

WPP

(LSE:WPP)

Rating:61Neutral
Price Target:
452.00p
▲(9.23%Upside)
The overall stock score reflects a combination of solid financial performance and strategic initiatives weighed against technical weaknesses and market challenges. While the company is making strategic transformations, bearish technical signals and economic headwinds, particularly in China, present significant risks.
Positive Factors
Investment Strategy
A new CEO could pursue restructuring and investment plans to improve WPP's financial flexibility, allowing for deals that could enhance capability, net new business momentum, and organic growth.
Management Change
The earlier than expected appointment of a CEO shortens the period of management uncertainty which could have resulted in strategic or operational drift, and potentially makes WPP less vulnerable to a bid.
Technology and Innovation
The company deepened its investments in tech, data, and AI, as well as launched WPP Open.
Negative Factors
Client Relationships
WPP loses significant accounts including Mars, Coke, and Paramount, impacting net new business momentum negatively.
Financial Performance
WPP FY24 results and FY25 outlook look disappointing, particularly on the revenue side.
Market Expectations
Weak 2025 guidance with a 6% EPS cut on the cards.

WPP (WPP) vs. iShares MSCI United Kingdom ETF (EWC)

WPP Business Overview & Revenue Model

Company DescriptionWPP plc is a leading global advertising and public relations company that provides a wide range of communications services. Headquartered in London, United Kingdom, WPP operates through various sectors including advertising, media investment management, data investment management, public relations, and branding & identity. The company's core services encompass digital marketing, consumer insights, media planning and buying, content production, and public relations, catering to a diverse array of clients worldwide.
How the Company Makes MoneyWPP makes money primarily through a fee-based revenue model, where it charges clients for a variety of marketing and communication services. Key revenue streams include advertising services, where WPP creates and executes advertising campaigns across multiple platforms; media investment management, involving media planning and buying on behalf of clients; and data investment management, which provides consumer insights and analytics to inform marketing strategies. Additionally, WPP earns from branding and identity services, public relations campaigns, and digital marketing solutions, including social media and content creation. Strategic partnerships and collaborations with major global brands and media outlets further enhance its earnings by expanding service offerings and client reach.

WPP Earnings Call Summary

Earnings Call Date:Feb 27, 2025
(Q4-2024)
|
% Change Since: -43.92%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant achievements in strategic transformation, margin improvement, and debt reduction, these were offset by challenges in net revenue decline, China market difficulties, and declines in creative and public relations segments. The sentiment remains cautious due to macroeconomic uncertainties and regional performance weaknesses.
Q4-2024 Updates
Positive Updates
Strategic Transformation Progress
The company made significant progress in strategic transformation, including investment in WPP Open and a stronger balance sheet. Strong strategic progress, better new business performance in the second half, and improved cash conversion were noted.
Operating Margin Improvement
Headline operating margin improved to 15%, up 40 basis points year-on-year, benefiting from structural cost savings and disciplined cost management.
Debt Reduction
Year-end net debt reduced to GBP 1.7 billion, a GBP 0.8 billion reduction year-on-year, aided by strong working capital management and the sale of FGS Global.
AI and Data Investment
Significant investment in AI and data (GBP 250 million) with a focus on enhancing tools and deployment across teams. Incremental P&L investment of over GBP 30 million was made.
Client Growth and Retention
Top 10 clients grew 2.8% throughout the year, and the top 25 clients grew 2%, indicating strong client retention and growth.
Successful New Business Wins
Improved new business performance in the second half with wins including Amazon, J&J, and Unilever.
Negative Updates
Net Revenue Decline
Net revenue growth came in at minus 1%, consistent with the lower end of guidance range, impacted by historical client losses and weaker discretionary spend.
China Market Challenges
Challenging trends in China led to an 80 basis point drag, with a significant decline in performance expected to continue in the first half of 2025.
Decline in Creative Agencies
Global integrated creative agencies saw a like-for-like decline of 3.9% in 2024, driven by the loss of a healthcare client assignment and continued weakness in project-based work.
Public Relations Decline
Public Relations saw a like-for-like decline of 1.7% in 2024, with performance impacted by the loss of healthcare client assignments and a challenging environment for client discretionary spend.
Regional Performance Weakness
North America declined by 0.7%, the United Kingdom by 2.7%, and the rest of world by 2.6%, largely driven by macroeconomic pressures and client loss impacts.
Increased Finance Costs
Net finance costs increased to GBP 280 million due to higher interest rates following bond refinancing.
Company Guidance
In the call, the guidance for 2025 highlighted several key metrics and strategic priorities. The company reported a net revenue decline of 1% in 2024, which was at the lower end of their guidance range due to challenging trends, particularly in China, and weaker discretionary spending. Despite these challenges, they achieved a stronger headline operating margin of 15%, up 40 basis points year-on-year, supported by structural cost savings and disciplined cost management. Investment in AI and data saw a GBP 250 million commitment, with an additional GBP 30 million incrementally over the year. The company's strategic focus includes driving efficiency and effectiveness through their WPP Open platform, which has seen significant adoption and is expected to further enhance productivity and client engagement. For 2025, they anticipate like-for-like revenue ranging from flat to a decline of 2%, with margins expected to remain flat. The company also aims to improve cash conversion, which was 86% in 2024, alongside reducing net debt, which stood at GBP 1.7 billion at year-end. The strategic outlook for 2025 emphasizes leveraging AI, data, and technology to deliver better client outcomes, with continued focus on simplifying the organization and enhancing collaboration.

WPP Financial Statement Overview

Summary
WPP demonstrates solid operational efficiency with strong EBIT and EBITDA margins. However, revenue growth was slightly negative, and the balance sheet reflects high leverage, posing a potential risk.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.74B14.84B14.43B12.80B12.00B
Gross Profit2.45B2.52B2.54B2.20B2.01B
EBITDA1.90B1.83B2.03B1.78B-1.85B
Net Income542.00M110.40M682.70M637.70M-2.97B
Balance Sheet
Total Assets25.51B26.62B28.82B27.87B36.17B
Cash, Cash Equivalents and Short-Term Investments2.64B2.22B2.49B3.88B12.90B
Total Debt6.35B6.88B7.18B6.83B15.75B
Total Liabilities21.77B22.79B24.66B23.80B31.12B
Stockholders Equity3.48B3.38B3.68B3.62B4.73B
Cash Flow
Free Cash Flow1.17B1.02B477.60M1.74B1.78B
Operating Cash Flow1.41B1.24B700.90M2.03B2.05B
Investing Cash Flow278.00M-380.40M-408.90M-638.40M-163.40M
Financing Cash Flow-989.00M-904.70M-1.91B-2.06B-250.50M

WPP Technical Analysis

Technical Analysis Sentiment
Negative
Last Price413.80
Price Trends
50DMA
531.19
Negative
100DMA
551.81
Negative
200DMA
659.95
Negative
Market Momentum
MACD
-33.94
Positive
RSI
23.62
Positive
STOCH
3.70
Positive
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 413.8 is below the 20-day moving average (MA) of 485.40, below the 50-day MA of 531.19, and below the 200-day MA of 659.95, indicating a bearish trend. The MACD of -33.94 indicates Positive momentum. The RSI at 23.62 is Positive, neither overbought nor oversold. The STOCH value of 3.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WPP.

WPP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£1.00B10.9772.38%5.24%0.33%7.18%
GBNFG
68
Neutral
£274.52M6.8223.38%7.79%-0.66%-26.16%
GBSAA
67
Neutral
£233.93M18.3233.95%0.74%-12.89%
GBYOU
62
Neutral
£373.57M277.880.70%2.82%42.19%-94.16%
GBWPP
61
Neutral
£4.54B8.3515.82%11.85%-0.70%388.07%
55
Neutral
HK$66.29B-2.30-3.61%6.47%-4.24%-17.51%
49
Neutral
£137.83M99.88-42.53%4.42%-16.14%-5856.63%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WPP
WPP
413.80
-285.23
-40.80%
GB:SAA
M&C Saatchi plc
190.50
-13.95
-6.82%
GB:YOU
Yougov plc
314.00
-128.96
-29.11%
GB:NFG
Next Fifteen Communications
268.00
-520.71
-66.02%
GB:SFOR
S4 Capital Plc
22.65
-27.72
-55.03%
GB:FOUR
4Imprint
3,625.00
-1,689.33
-31.79%

WPP Corporate Events

Executive/Board Changes
WPP Appoints Cindy Rose as New CEO
Positive
Jul 10, 2025

WPP has announced the appointment of Cindy Rose as the new Chief Executive Officer, effective September 1, 2025. Cindy Rose, who has a strong background in technology and media from her roles at Microsoft, Vodafone, Virgin Media, and Disney, will succeed Mark Read. Her expertise in digital transformation and AI is expected to be invaluable as WPP navigates industry changes and macroeconomic uncertainties. Cindy’s appointment follows a thorough selection process, and her familiarity with WPP from her time on the Board is seen as a significant advantage. Mark Read will assist in the transition until the end of the year.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
WPP Revises 2025 Financial Outlook Amid Economic Challenges
Negative
Jul 9, 2025

WPP has updated its financial outlook for 2025, citing a challenging economic environment and weaker-than-expected new business performance. The company anticipates a decline in like-for-like revenue less pass-through costs and a reduction in headline operating profit margin. Despite these challenges, WPP is committed to balancing long-term investments with cost reductions to navigate the current trading conditions.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Regulatory Filings and Compliance
WPP Announces Total Voting Rights and Capital Structure
Neutral
Jul 1, 2025

WPP has announced its total voting rights and capital structure as of June 30, 2025. The company reported an issued share capital of 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 reporting obligations under the FCA’s rules.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
T. Rowe Price Reduces Stake in WPP PLC
Neutral
Jun 13, 2025

T. Rowe Price Associates, Inc., based in Baltimore, USA, has reduced its voting rights in WPP PLC from 5.134552% to 4.913271%. This change in voting rights was due to an acquisition or disposal of shares, which was officially notified to WPP on June 12, 2025. The adjustment in shareholding reflects a slight decrease in T. Rowe Price’s influence over WPP’s corporate decisions, potentially impacting stakeholder dynamics and the company’s strategic direction.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
WPP CEO Mark Read to Retire at Year-End 2025
Neutral
Jun 9, 2025

WPP announced that its CEO, Mark Read, will retire at the end of 2025 after over 30 years with the company, including seven years as CEO. Under his leadership, WPP has become a world leader in marketing services, with significant investments in AI and technology, and has been recognized for its creativity. The search for a successor is underway, and Read will continue to lead the company until a new CEO is appointed, ensuring a smooth transition and continued focus on the company’s growth strategy.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Regulatory Filings and Compliance
WPP Updates on Share Capital and Voting Rights
Neutral
Jun 2, 2025

WPP has announced that as of May 30, 2025, its issued share capital consists of 1,091,394,251 ordinary shares, with 12,591,893 held in treasury, resulting in a total of 1,078,802,358 voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
WPP PLC Announces Successful AGM Results
Positive
May 23, 2025

WPP PLC announced the results of its Annual General Meeting held on May 23, 2025, where all proposed resolutions were passed, including 19 ordinary resolutions and 3 special resolutions. This outcome reflects strong shareholder support and is likely to positively impact WPP’s governance and strategic initiatives, reinforcing its industry positioning and stakeholder confidence.

The most recent analyst rating on (GB:WPP) stock is a Buy with a £860.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

Executive/Board Changes
WPP Announces 2024 Executive Share Awards
Neutral
May 12, 2025

WPP announced the delivery of its 2024 Executive Director’s annual bonus, which includes a cash award and a deferred share award comprising 40% of the total bonus. The Executive Share Award will vest after two years, contingent on continued employment, with additional shares awarded at vesting in lieu of dividends. This move aligns with the 2023 Directors’ Compensation Policy and reflects WPP’s commitment to aligning executive incentives with shareholder interests.

Regulatory Filings and Compliance
WPP Updates Share Capital and Voting Rights
Neutral
May 1, 2025

WPP has announced that as of April 30, 2025, its issued share capital consists of 1,091,394,251 ordinary shares, with 12,591,893 held in treasury. This results in a total of 1,078,802,358 voting rights, a figure that shareholders can use to assess their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

Business Operations and StrategyFinancial Disclosures
WPP Reports Q1 2025 Revenue Decline Amid Strategic Progress
Neutral
Apr 25, 2025

WPP reported a 5.0% decline in Q1 2025 revenue to £3.2 billion, with a like-for-like decrease of 0.7%, reflecting macroeconomic challenges and the timing of new business. Despite these challenges, the company made strategic progress, including significant client wins and the integration of InfoSum to enhance its AI-driven data offerings. WPP remains committed to its strategic priorities, including the expansion of its WPP Open platform and improving GroupM’s competitiveness. The company reiterated its full-year guidance, expecting flat to -2% like-for-like revenue less pass-through costs and a stable operating profit margin.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025