WPP (WPP) AI Stock Analysis

• Market Cap: $4.89B
• Dividend Yield: 9%
• Average Volume (3M): 736.79K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.70
• Revenue Growth: -1.89%
• EPS Growth: 90.72%
• Country: US
• Employees: 108,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 1.32
• Shares Outstanding: 215,760,470
• 10 Day Avg. Volume: 654,515
• 30 Day Avg. Volume: 736,794
• PEG Ratio: 0.04
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.55
• Enterprise Value/Market Cap: 3.13
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 6.79
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.07
• Revenue Forecast (FY): $13.78B

• Rating: 64 Neutral
• Price Target: $21.00 ▼(-9.60% Downside)

WPP's overall stock score is driven by a solid financial performance with strong cash flow and improved profitability, despite high leverage and declining revenue. The technical analysis indicates bearish momentum, suggesting caution. However, the attractive valuation with a low P/E ratio and high dividend yield provides a compelling case for value investors.

Positive Factors

Cash Generation Ability

Strong free cash flow growth indicates robust cash generation, providing WPP with financial flexibility to invest in growth opportunities and manage debt.

Profitability Improvement

Improved net profit margin reflects enhanced operational efficiency and profitability, strengthening WPP's financial health and shareholder returns.

Operational Efficiency

Significant improvement in EBIT margin demonstrates better operational efficiency, allowing WPP to maintain competitiveness and improve profitability.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting WPP's ability to invest in growth and navigate economic downturns, impacting long-term stability.

Declining Revenue

Declining revenue growth suggests challenges in market expansion and client retention, which could hinder WPP's ability to sustain long-term growth.

Shareholder Structure Changes

Changes in shareholder structure may impact governance and strategic decisions, potentially affecting WPP's long-term strategic direction and stability.

WPP Business Overview & Revenue Model

Company Description

WPP is a leading global communications services group headquartered in London, specializing in advertising, media investment management, and communication services. The company operates through various sectors, including advertising, public relations, branding, media planning and buying, digital marketing, and market research. WPP provides a comprehensive range of services that help clients to create and manage their brands and engage with consumers across multiple channels and platforms.

How the Company Makes Money

WPP generates revenue primarily through its diverse range of services offered to clients in various sectors. The company's revenue model is largely based on fees for services, which can include project-based fees, retainers, and commissions. Key revenue streams include advertising services, media buying, public relations, and digital marketing solutions. WPP also earns income from its proprietary technology platforms and data analytics capabilities that enhance client marketing effectiveness. Significant partnerships with major global brands and corporations across various industries contribute to its earnings, allowing WPP to leverage its expertise and scale to meet client needs.

WPP Financial Statement Overview

Summary

WPP's financial performance shows improved profitability and cash flow generation, despite a slight decline in revenue. The company has enhanced its operational efficiency as shown by the improved margins. However, high leverage remains a concern, which could pose risks in volatile market conditions. The strong cash flow position provides a cushion, but maintaining revenue growth will be crucial for future stability.

Income Statement

The income statement shows a mixed performance. The gross profit margin for 2024 was 16.63%, indicating a solid ability to cover production costs. The net profit margin improved to 3.68% from 0.74% in 2023, showing enhanced profitability. However, the revenue growth rate was -0.70%, indicating a slight decline in total revenue relative to the previous year. EBIT margin improved significantly to 8.99% from 3.58% in 2023, suggesting better operational efficiency. EBITDA margin decreased slightly to 10.76% from 12.86% in 2023.

Balance Sheet

The balance sheet highlights some strengths and challenges. The debt-to-equity ratio increased to 1.83 from 2.04 in 2023, suggesting a high level of leverage, which can be risky. Return on equity (ROE) improved to 15.60% from 3.27% in 2023, indicating better profitability for shareholders. The equity ratio stands at 13.62%, slightly better than the previous year, but still suggests heavy reliance on debt financing.

Cash Flow

Cash flow statements reveal strong free cash flow growth of 19.41%, indicating improved cash generation capabilities. The operating cash flow to net income ratio was 2.60, demonstrating robust operating cash flow relative to net income. The free cash flow to net income ratio was 2.25, further emphasizing strong cash flow performance compared to earnings.

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: Neutral
• Last Price: 23.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WPP, the sentiment is Neutral. The current price of 23.23 is above the 20-day moving average (MA) of 20.50, above the 50-day MA of 20.98, and below the 200-day MA of 28.95, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 87.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WPP.

WPP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	73 Outperform	$26.14B	12.21	31.17%	3.55%	4.13%	-7.84%
ZD	69 Neutral	$1.41B	14.57	6.26%	―	5.70%	97.88%
MGNI	68 Neutral	$2.40B	43.98	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.34B	69.10	3.80%	―	6.76%	1841.46%
WPP	64 Neutral	$4.89B	9.82	11.24%	9.00%	-1.89%	90.72%
IPG	64 Neutral	―	―	14.79%	5.37%	-5.96%	-30.61%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

WPP Corporate Events

WPP Announces Change in Major Shareholder Holdings

On November 28, 2025, WPP plc announced a significant change in its shareholder structure as UBS Group AG’s trading book holdings in WPP fell below the 5% threshold, making them exempt from reporting. This change, effective from November 26, 2025, indicates a shift in the company’s voting rights distribution, potentially affecting its market dynamics and stakeholder interests.

UBS Increases Stake in WPP with Significant Voting Rights Acquisition

On November 25, 2025, UBS Group AG’s Investment Bank & Global Wealth Management division crossed a significant threshold in their voting rights in WPP plc, reaching a total of 5.183476% of voting rights. This acquisition of voting rights, notified to WPP on November 27, 2025, indicates a strategic move by UBS, potentially impacting WPP’s shareholder dynamics and market positioning.

WPP Announces Change in Major Holdings as Schroders Increases Stake

On November 21, 2025, WPP plc announced a change in major holdings, with Schroders Plc crossing a threshold in voting rights on November 19, 2025. This adjustment in voting rights, from 4.993032% to 5.068742%, indicates a slight increase in Schroders’ stake in WPP, potentially impacting shareholder dynamics and influencing future corporate decisions.

WPP Announces Change in Voting Rights by Major Shareholder

On November 18, 2025, WPP plc reported a change in voting rights due to an acquisition or disposal by Schroders Plc, a major shareholder. The notification revealed that Schroders’ voting rights in WPP decreased slightly from 5.028373% to 4.993032%, impacting the company’s shareholder structure. This adjustment in holdings reflects ongoing changes in the company’s ownership dynamics, which may influence its strategic decisions and stakeholder interests.

WPP Announces Change in Major Shareholder Holdings

On November 6, 2025, WPP plc reported a significant change in its shareholder structure due to an acquisition or disposal of voting rights by RWC Asset Management LLP. The notification, received on November 7, 2025, revealed that RWC Asset Management now holds 5.247% of WPP’s voting rights, amounting to 56,604,455 shares. This adjustment in major holdings could impact WPP’s strategic decisions and influence its market positioning.

WPP Sees Significant Change in Shareholder Voting Rights

On November 4, 2025, WPP plc announced a significant change in its shareholder structure, with FIL Limited acquiring additional voting rights. The acquisition, which occurred on October 31, 2025, increased FIL Limited’s total voting rights in WPP to 8.9178%, up from a previous position of 5.6528%. This shift in holdings could impact WPP’s strategic decisions and influence its market positioning, reflecting a potential change in stakeholder dynamics.

WPP Announces Change in Shareholder Voting Rights

On September 30, 2025, WPP plc announced a significant change in its shareholder structure as Mondrian Investment Partners Limited increased its voting rights in the company. The acquisition of voting rights, which crossed the threshold on September 26, 2025, resulted in Mondrian holding 5.632220% of total voting rights, up from a previous 4.941850%. This change reflects a strategic move by Mondrian, potentially impacting WPP’s future governance and decision-making processes.

WPP to Release Third Quarter Trading Update on October 30, 2025

WPP has announced it will release its Third Quarter Trading Update for the nine months ending on September 30, 2025, on October 30, 2025. This announcement is significant as it provides stakeholders with insights into WPP’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder confidence.

WPP Announces Significant Shareholder Changes in September 2025

On September 15, 2025, WPP plc experienced a change in its shareholder structure as Schroders Plc acquired or disposed of voting rights and financial instruments, resulting in a total holding of 5.028373% voting rights in WPP. This notification, which was reported to WPP on September 16, 2025, reflects a significant shift in the company’s shareholder dynamics, potentially impacting its governance and strategic decisions.