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WPP plc (WPP)
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WPP (WPP) AI Stock Analysis

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WPP

WPP

(NYSE:WPP)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$29.00
▲(20.63% Upside)
WPP's overall stock score is driven by strong financial performance and attractive valuation. The company's improved profitability and cash flow generation are significant strengths. However, technical analysis indicates a neutral to slightly bearish trend, which tempers the overall score. The absence of earnings call insights and notable corporate events limits the assessment of strategic direction and potential risks.

WPP (WPP) vs. SPDR S&P 500 ETF (SPY)

WPP Business Overview & Revenue Model

Company DescriptionWPP 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 MoneyWPP 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which might need strategic adjustments.
Chart InsightsWPP's Global Integrated Agencies segment shows a stable recovery post-2020, maintaining strong revenue levels despite slight fluctuations. Public Relations experienced a peak in 2022 but has seen a decline since, indicating potential challenges in maintaining growth. Specialist Agencies have stabilized after a significant drop in 2021, suggesting a strategic refocus. The absence of Data Investment Management revenue highlights a potential gap or strategic shift. Overall, WPP's revenue streams show resilience, but the company may need to address the declining momentum in Public Relations to sustain growth.
Data provided by:Main Street Data

WPP Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q4-2024)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted improvements in operating margin, debt reduction, and strategic transformation progress. However, it also acknowledged challenges in net revenue decline, significant issues in the China market, and increased finance costs. The cautious guidance for 2025 reflects ongoing uncertainty in macroeconomic conditions.
Q4-2024 Updates
Positive Updates
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 was 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.
Strategic Transformation Progress
Significant progress in strategic transformation, including network consolidation, simplification, and investment in WPP Open, AI, and data.
Top Client Growth
Top 10 clients grew by 2.8%, and the top 25 clients grew by 2%, indicating solid client relationship management and growth.
AI and Technology Investment
Increased investment in AI and technology, with WPP Open seeing greater adoption and a planned GBP 50 million incremental cash spend in 2025.
Negative Updates
Net Revenue Decline
Net revenue growth was at minus 1%, at the lower end of the guidance range, impacted by challenging trends in China and weaker discretionary spend.
China Market Challenges
China experienced a 20.8% decline in 2024, with persistent macroeconomic pressures and client assignment losses.
Public Relations and Creative Agencies Decline
Public Relations like-for-like declined by 1.7% and creative agencies saw a 3.9% decline, affected by client assignment losses and challenging environments.
Tech and Interest Cost Increases
Net finance costs increased to GBP 280 million due to higher interest rates from bond refinancing.
Cautious 2025 Guidance
Guidance for 2025 is flat to minus 2% like-for-like, reflecting macroeconomic uncertainty and the impact of net new business.
Company Guidance
In the call, WPP provided guidance for fiscal year 2025 with several key financial metrics and strategic priorities highlighted. The company reported a net revenue decline of 1% for 2024, attributing this to challenges such as an 80 basis point drag from China and reduced discretionary spend in the fourth quarter. Despite these headwinds, they improved their headline operating margin by 40 basis points to 15% and achieved an operating cash flow conversion of 86%. Net debt was reduced by GBP 0.8 billion, ending 2024 at GBP 1.7 billion. For 2025, WPP is guiding to a like-for-like revenue range of flat to minus 2%, with expectations of maintaining flat margins despite a challenging macro environment. The company plans to invest GBP 50 million incrementally in AI and data through WPP Open, aiming to leverage AI for creative and media efficiencies. Additionally, they highlighted recent new business wins and improvements in client retention as pivotal for future growth, while also emphasizing the strategic focus on delivering integrated services and facilitating marketing transformations for clients.

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
72
Positive
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
65
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.18B14.74B14.84B14.43B12.80B12.00B
Gross Profit2.25B2.45B2.52B2.54B2.20B2.01B
EBITDA1.51B1.90B1.83B2.03B1.78B-1.85B
Net Income381.00M542.00M110.40M682.70M637.70M-2.97B
Balance Sheet
Total Assets23.39B25.51B26.62B28.82B27.87B36.17B
Cash, Cash Equivalents and Short-Term Investments1.44B2.64B2.22B2.49B3.88B12.90B
Total Debt6.75B6.35B6.88B7.18B6.83B15.75B
Total Liabilities19.99B21.77B22.79B24.66B23.80B31.12B
Stockholders Equity3.16B3.48B3.38B3.68B3.62B4.73B
Cash Flow
Free Cash Flow763.00M1.17B1.02B477.60M1.74B1.78B
Operating Cash Flow912.00M1.41B1.24B700.90M2.03B2.05B
Investing Cash Flow102.00M278.00M-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 Price24.04
Price Trends
50DMA
26.42
Negative
100DMA
31.18
Negative
200DMA
36.75
Negative
Market Momentum
MACD
-0.83
Positive
RSI
31.94
Neutral
STOCH
9.72
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 24.04 is below the 20-day moving average (MA) of 25.89, below the 50-day MA of 26.42, and below the 200-day MA of 36.75, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 31.94 is Neutral, neither overbought nor oversold. The STOCH value of 9.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WPP.

WPP Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
14.93B10.8930.74%3.63%5.21%-3.74%
71
Outperform
3.15B78.765.61%5.52%
70
Outperform
1.51B25.383.59%5.94%-8.89%
68
Neutral
$5.12B10.5111.24%10.15%-1.89%90.72%
68
Neutral
1.40B487.39-0.22%9.56%
66
Neutral
9.65B21.9611.90%5.01%-5.16%-56.06%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WPP
WPP
24.04
-25.09
-51.07%
IPG
Interpublic Group of Companies
26.35
-3.75
-12.46%
ZD
Ziff Davis
36.87
-11.98
-24.52%
STGW
Stagwell
5.41
-1.72
-24.12%
OMC
Omnicom Group
77.05
-22.09
-22.28%
MGNI
Magnite
22.42
8.70
63.41%

WPP Corporate Events

WPP Announces Changes in Voting Rights as of August 2025
Sep 2, 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
Aug 26, 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
Aug 21, 2025

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
Aug 11, 2025

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
Aug 4, 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.

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: Sep 16, 2025