Skip to Content
Morningstar

WPP PLC ADR WPP

Morningstar Rating
Unlock
Stock XNYS Rating as of
$50.11 −0.14 (0.28%)
View Full Chart
As of Delayed Price Pre-Open: $50.33 +0.21
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

WPP Earnings: Revenue Growth Continues to Underperform Peers; Lowering Our Fair Value Estimate

Eric Compton

Narrow-moat WPP Group reported less-than-stellar results for its first quarter. We are lowering our fair value estimate to GBX 940 per share from GBX 1,010 as we account for a higher probability that the company comes in at the very low end of its growth targets and struggles to meet its medium-term goal of 3%-5% growth. Our revised fair value estimate is still roughly 15% above the current price as of this writing. We do not think the valuation is demanding, but we believe WPP will have to prove that it can at least keep up with peers on revenue growth before its valuation gap with peers begins to close.

Read Full Report

Price vs Fair Value

View History
WPP is trading at a 23% discount.
Price
$49.13
Fair Value
$46.00
Uncertainty
High
1-Star Price
$76.40
5-Star Price
$61.40
Economic Moat
Kmvwbgh
Capital Allocation
Pvhqcvdnz

Bulls Say, Bears Say

Bulls

WPP's ownership of advertising and marketing companies includes some of the largest and best-known brands across multiple disciplines.

Bears

Evolving technology and consumer preferences are forcing constant changes to the way goods and services are marketed. WPP's results could suffer if the firm can't adapt quickly enough.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if WPP is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$50.25
Day Range
$49.11–50.14
52-Week Range
$41.13–59.70
Bid/Ask
$50.59 / $50.63
Market Cap
$10.81 Bil
Volume/Avg
7 / 187,311

Key Statistics

Price/Earnings (Normalized)
8.32
Price/Sales
0.60
Dividend Yield (Trailing)
5.02%
Dividend Yield (Forward)
5.02%
Total Yield
5.65%

Company Profile

Headquartered in the United Kingdom, WPP is the world’s largest ad holding company, based on annual revenues. WPP's services, which include traditional and digital advertising, public relations, and consulting, are provided worldwide, with over 70% of its revenue coming from more developed regions such as North America, the UK, and Western Europe.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Mid Value
Total Number of Employees
114,173
Website
https://www.wpp.com

Competitors

Valuation

View More
Metric
WPP
OMC
IPG
Price/Earnings (Normalized)
 8.3212.7310.46
Price/Book Value
 2.515.273.07
Price/Sales
 0.601.291.10
Price/Cash Flow
 5.9010.288.36
Price/Earnings
WPP
OMC
IPG

Financial Strength

Metric
WPP
OMC
IPG
Quick Ratio
 0.840.741.01
Current Ratio
 0.860.931.06
Interest Coverage
 1.6010.426.62
Quick Ratio
WPP
OMC
IPG

Profitability

Metric
WPP
OMC
IPG
Return on Assets (Normalized)
 3.76%6.25%6.45%
Return on Equity (Normalized)
 28.78%48.96%30.16%
Return on Invested Capital (Normalized)
 11.56%15.82%14.06%
Return on Assets
WPP
OMC
IPG
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Advertising Agencies Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
PUBGY
Publicis Groupe SA ADR—Tbzzxg$28.0 Bil
PGPEF
Publicis Groupe SA—Dyhgtlq$27.4 Bil
OMC
Omnicom Group IncNjvkjnmzqZfyhk$18.8 Bil
IPG
The Interpublic Group of Companies IncZnkqyyqntvXgphny$11.8 Bil
WPPGF
WPP PLC—Ndqjb$10.6 Bil
DNTUY
Dentsu Group Inc ADR—Nrgxx$7.2 Bil
DNTUF
Dentsu Group Inc—Kcgg$7.2 Bil
JCDXF
JCDecaux SE—Sjnr$4.4 Bil
JCDXY
JCDecaux SE ADR—Ddqz$4.4 Bil

Sponsor Center