Skip to Content

WPP PLC ADR WPP

Morningstar Rating
$45.65 −3.52 (7.16%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

WPP Earnings: Pressure From Account Losses and Creativity Weakness Likely to Ease in Late 2024

WPP posted fourth-quarter results mostly in line with expectations. However, its 2024 organic growth guidance remained well below the outlook provided by its peers as account losses will pressure the firm mainly in the first half. Investment in this name still requires patience, as WPP has been late in integrating the technology and data behind its media and creativity. However, we do not think WPP is too far behind its peers. We still believe that with the largest media agency, GroupM, and the most advertising revenue in the world, WPP can turn around its creativity business and strengthen its organic net revenue growth in the second half of 2024. We are maintaining our GBX 1,250 fair value estimate of WPP.

Price vs Fair Value

WPP is trading at a 42% discount.
Price
$45.65
Fair Value
$88.00
Uncertainty
High
1-Star Price
$256.72
5-Star Price
$39.20
Economic Moat
Qdyckrw
Capital Allocation
Vpkrwdtjp

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.

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.

News

Trading Information

Previous Close Price
$49.17
Day Range
$45.5047.33
52-Week Range
$41.1364.07
Bid/Ask
$45.11 / $45.17
Market Cap
$9.81 Bil
Volume/Avg
1,504 / 147,300

Key Statistics

Price/Earnings (Normalized)
8.01
Price/Sales
0.59
Dividend Yield (Trailing)
5.51%
Dividend Yield (Forward)
5.51%
Total Yield
6.19%

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 U.K., and Western Europe.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Mid Value
Total Number of Employees
114,173

Competitors

Valuation

Metric
WPP
IPG
PUB
Price/Earnings (Normalized)
8.0111.1713.79
Price/Book Value
2.272.65
Price/Sales
0.591.121.67
Price/Cash Flow
5.798.4311.42
Price/Earnings
WPP
IPG
PUB

Financial Strength

Metric
WPP
IPG
PUB
Quick Ratio
0.861.010.90
Current Ratio
0.881.060.92
Interest Coverage
2.716.628.78
Quick Ratio
WPP
IPG
PUB

Profitability

Metric
WPP
IPG
PUB
Return on Assets (Normalized)
3.96%6.42%4.90%
Return on Equity (Normalized)
29.31%30.87%18.09%
Return on Invested Capital (Normalized)
10.98%14.35%11.11%
Return on Assets
WPP
IPG
PUB
See how this stock stacks up to its competitors with Morningstar Investor

Advertising Agencies Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
PGPEF
Publicis Groupe SARwqkvly$26.6 Bil
PUBGY
Publicis Groupe SA ADRSwvpp$26.6 Bil
OMC
Omnicom Group IncLkjcmd$17.5 Bil
IPG
The Interpublic Group of Companies IncQfttby$12.3 Bil
WPPGF
WPP PLCWnd$9.9 Bil
DNTUY
Dentsu Group Inc ADRRfz$7.5 Bil
DNTUF
Dentsu Group IncCncsw$7.5 Bil
CRTO
Criteo SA ADRHgqyp$1.8 Bil
MGNI
Magnite IncYfpnb$1.3 Bil

Sponsor Center