WPP (WPP) AI Stock Analysis

• Market Cap: $3.82B
• Dividend Yield: 11.02%
• Average Volume (3M): 501.11K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.88
• Revenue Growth: -1.89%
• EPS Growth: 90.72%
• Country: US
• Employees: 108,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 1.31
• Shares Outstanding: 215,760,470
• 10 Day Avg. Volume: 429,377
• 30 Day Avg. Volume: 501,108
• 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: 4.00
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 6.79
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: $24.00
• Price Target Upside: 3.31% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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.

WPP Business Overview & Revenue Model

Company Description

WPP is a leading global communications services group that provides marketing, advertising, media, and public relations services. Founded in 1985 and headquartered in London, WPP operates through a network of agencies and subsidiaries across various sectors, including digital marketing, brand strategy, creative development, and data analytics. The company serves a diverse range of clients, from multinational corporations to local businesses, offering integrated solutions to enhance brand visibility and engagement in an ever-evolving digital landscape.

How the Company Makes Money

WPP generates revenue primarily through its extensive portfolio of marketing and advertising services. The company's revenue model is based on a mix of fee-based and commission-based income, derived from agency services such as creative development, media planning and buying, branding, and public relations. Key revenue streams include fees for project-based work, retainers for ongoing services, and commissions from media placements. Additionally, WPP benefits from significant partnerships with major brands and corporations, allowing it to secure long-term contracts and repeat business. The company's investment in data analytics and technology also contributes to its revenue by enabling more effective marketing strategies for clients, thereby increasing client spend and retention.

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	1.83B	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: 23.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WPP, the sentiment is Negative. The current price of 23.23 is above the 20-day moving average (MA) of 21.82, below the 50-day MA of 23.65, and below the 200-day MA of 32.23, indicating a bearish trend. The MACD of -1.66 indicates Positive momentum. The RSI at 31.03 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WPP.

WPP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMC	75 Outperform	$14.33B	10.96	31.17%	3.77%	4.13%	-7.84%
MGNI	68 Neutral	$2.14B	40.04	7.56%	―	6.27%	226.16%
WPP	64 Neutral	$3.82B	7.75	11.24%	11.02%	-1.89%	90.72%
IPG	63 Neutral	$9.33B	21.56	11.70%	5.18%	-5.16%	-56.06%
ZD	63 Neutral	$1.34B	13.19	6.26%	―	5.70%	97.88%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
STGW	59 Neutral	$1.22B	62.84	3.80%	―	6.76%	1841.46%

WPP Corporate Events

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.

WPP Announces Changes in Voting Rights as of August 2025

On August 29, 2025, WPP plc experienced a change in its voting rights structure due to an acquisition or disposal of voting rights by Mondrian Investment Partners Limited. The notification, received on September 1, 2025, indicated a slight decrease in the total percentage of voting rights held, from 5.047530% to 4.941850%. This adjustment in voting rights may influence WPP’s shareholder dynamics and could have implications for its governance and decision-making processes.

BlackRock Adjusts Holdings in WPP plc as of August 2025

On August 21, 2025, BlackRock, Inc. adjusted its holdings in WPP plc, crossing a threshold of voting rights. The change was officially notified on August 22, 2025. BlackRock’s voting rights in WPP now stand at 12.24%, a slight increase from the previous 12.17%. This adjustment in holdings may influence WPP’s shareholder dynamics and reflects BlackRock’s strategic positioning within the company.

WPP Announces Major Shareholding Change as FIL Limited Acquires Stake

On August 21, 2025, WPP plc announced a notification of major holdings, indicating that FIL Limited, based in Bermuda, acquired a significant portion of voting rights in the company. This acquisition, which occurred on August 19, 2025, resulted in FIL Limited holding a total of 5.6528% of voting rights, impacting WPP’s shareholder structure and potentially influencing its strategic decisions.

WPP Announces Change in Major Shareholder Voting Rights

On August 7, 2025, WPP plc announced a significant change in its shareholder structure as BlackRock, Inc. increased its voting rights in the company. The notification, dated August 11, 2025, revealed that BlackRock’s voting rights rose to 12.17%, up from a previous position of 10%. This shift in ownership could impact WPP’s strategic decisions and market positioning, given BlackRock’s influential role as a major shareholder.

WPP Updates Share Capital and Voting Rights as of July 31, 2025

On August 1, 2025, WPP announced that as of July 31, 2025, its issued share capital consisted of 1,091,394,251 ordinary shares, with 12,591,893 held in Treasury, resulting in 1,078,802,358 total voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.