WPP plc (WPP) 10-Year Financial Performance & Capital Metrics

WPP • • Industrial / General

Communication ServicesAdvertising & MarketingFull-Service Advertising AgenciesGlobal Agency Networks

AboutWPP 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.Show more

Revenue $14.74B -0.7%
EBITDA $1.82B +6.6%
Net Income $542M +390.9%
EPS (Diluted) 2.45 +390.0%
Gross Margin 16.63% -2.0%
EBITDA Margin 12.34% +7.4%
Operating Margin 8.99% +151.3%
Net Margin 3.68% +394.4%
ROE 14.33% +418.6%
ROIC 12.47% +171.5%
Debt/Equity 1.70 -5.2%
Interest Coverage 3.18 +132.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Trading at only 1.3x book value

✗Weaknesses

✗Weak momentum: RS Rating 18 (bottom 18%)
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y2.49%

5Y2.18%

3Y4.82%

TTM2.5%

Profit (Net Income) CAGR

10Y-6.64%

5Y-8.48%

3Y-5.28%

TTM-50.46%

EPS CAGR

10Y-4.9%

5Y-6.07%

3Y-1.96%

TTM-48.22%

ROCE

10Y Avg10.36%

5Y Avg11.23%

3Y Avg10.01%

Latest13.01%

Peer Comparison

Global Agency Networks

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
IPGThe Interpublic Group of Companies, Inc.	8.93B	24.57	13.43	-1.81%	5.4%	14.86%	10.23%	1.09
OMCOmnicom Group Inc.	25.43B	80.84	10.84	6.79%	8.31%	26.05%	6.26%	1.33
WPPWPP plc	4.64B	21.50	8.78	-0.7%	2.01%	17.15%	25.27%	1.70

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	12.24B	14.89B	13.15B	13.05B	13.23B	12B	12.8B	14.43B	14.84B	14.74B
Revenue Growth %	0.06%	0.22%	-0.12%	-0.01%	0.01%	-0.09%	0.07%	0.13%	0.03%	-0.01%
Cost of Goods Sold+	9.71B	11.85B	10.48B	10.56B	10.83B	9.99B	10.6B	11.89B	12.33B	12.29B
COGS % of Revenue	0.79%	0.8%	0.8%	0.81%	0.82%	0.83%	0.83%	0.82%	0.83%	0.83%
Gross Profit+	2.53B	3.04B	2.66B	2.49B	2.41B	2.01B	2.2B	2.54B	2.52B	2.45B
Gross Margin %	0.21%	0.2%	0.2%	0.19%	0.18%	0.17%	0.17%	0.18%	0.17%	0.17%
Gross Profit Growth %	-0.75%	0.2%	-0.12%	-0.07%	-0.03%	-0.16%	0.09%	0.15%	-0.01%	-0.03%
Operating Expenses+	894.1M	977.7M	1.09B	1.24B	1.11B	-263.2M	974.6M	1.18B	1.99B	1.13B
OpEx % of Revenue	0.07%	0.07%	0.08%	0.1%	0.08%	-0.02%	0.08%	0.08%	0.13%	0.08%
Selling, General & Admin	903.9M	987.1M	1.1B	1.25B	1.12B	4.29B	974.6M	1.18B	2B	1.14B
SG&A % of Revenue	0.07%	0.07%	0.08%	0.1%	0.08%	0.36%	0.08%	0.08%	0.13%	0.08%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-9.8M	-9.4M	-8.7M	-7.1M	-7.4M	-4.56B	0	0	0	-10M
Operating Income+	1.63B	2.06B	1.58B	1.25B	1.3B	2.28B	1.23B	1.36B	531M	1.32B
Operating Margin %	0.13%	0.14%	0.12%	0.1%	0.1%	0.19%	0.1%	0.09%	0.04%	0.09%
Operating Income Growth %	0.08%	0.26%	-0.24%	-0.21%	0.04%	0.76%	-0.46%	0.11%	-0.61%	1.5%
EBITDA+	2B	2.49B	2.03B	1.7B	1.62B	2.91B	1.77B	1.87B	1.71B	1.82B
EBITDA Margin %	0.16%	0.17%	0.15%	0.13%	0.12%	0.24%	0.14%	0.13%	0.11%	0.12%
EBITDA Growth %	0.06%	0.25%	-0.18%	-0.16%	-0.05%	0.8%	-0.39%	0.06%	-0.09%	0.07%
D&A (Non-Cash Add-back)	368.5M	427.8M	456.1M	454.7M	319.4M	631M	541.8M	513.1M	1.17B	494M
EBIT	1.62B	2.05B	1.57B	1.24B	1.29B	-2.48B	1.23B	1.52B	735.3M	1.4B
Net Interest Income+	-141.9M	-164.7M	-164.2M	-173.1M	-252.7M	-238M	-232.1M	-238.5M	-274.6M	-414M
Interest Income	72.4M	80.4M	95.4M	98.9M	99M	74M	51.5M	120.9M	114.4M	3M
Interest Expense	214.3M	245.1M	259.6M	272M	351.7M	312M	283.6M	359.4M	389M	417M
Other Income/Expense	-139.4M	-172.6M	316.1M	-226M	-81.6M	-5.07B	-278.2M	-198.4M	-184.7M	-294M
Pretax Income+	1.49B	1.89B	1.89B	1.02B	1.21B	-2.79B	950.8M	1.16B	346.3M	1.03B
Pretax Margin %	0.12%	0.13%	0.14%	0.08%	0.09%	-0.23%	0.07%	0.08%	0.02%	0.07%
Income Tax+	247.5M	388.9M	83M	256M	287.2M	127.1M	230.1M	384.4M	149.1M	402M
Effective Tax Rate %	0.78%	0.74%	1.04%	0.81%	0.7%	1.06%	0.67%	0.59%	0.32%	0.53%
Net Income+	1.16B	1.4B	1.96B	824.6M	844.1M	-2.97B	637.7M	682.7M	110.4M	542M
Net Margin %	0.09%	0.09%	0.15%	0.06%	0.06%	-0.25%	0.05%	0.05%	0.01%	0.04%
Net Income Growth %	0.08%	0.21%	0.4%	-0.58%	0.02%	-4.51%	1.22%	0.07%	-0.84%	3.91%
Net Income (Continuing)	1.25B	1.5B	1.81B	763.3M	927.1M	-2.92B	720.7M	775.4M	197.2M	629M
Discontinued Operations	0	0	237.1M	126.4M	-3.8M	16.4M	0	0	0	0
Minority Interest	378.4M	443.1M	468.8M	424.4M	371.4M	318.1M	452.6M	479.6M	457.1M	259M
EPS (Diluted)+	4.40	5.40	6.75	2.75	3.35	-12.00	2.60	3.05	0.50	2.45
EPS Growth %	0.09%	0.23%	0.25%	-0.59%	0.22%	-4.58%	1.22%	0.17%	-0.84%	3.9%
EPS (Basic)	4.50	5.50	6.85	2.35	3.40	-12.10	2.65	3.10	0.50	2.50
Diluted Shares Outstanding	262.6M	259.2M	255.16M	252.24M	252.12M	247.2M	243.06M	223.28M	218.8M	219.4M
Basic Shares Outstanding	257.7M	255.56M	252.22M	297.69M	250.85M	244.6M	238.82M	219.58M	218.61M	215.4M
Dividend Payout Ratio	0.47%	0.44%	0.38%	0.91%	0.89%	-	0.49%	0.54%	3.83%	0.78%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	13.38B	15.44B	24.62B	24.37B	23.76B	23.98B	15.34B	15.1B	13.94B	13.66B
Cash & Short-Term Investments	2.38B	2.44B	2.39B	2.64B	11.31B	12.9B	3.88B	2.49B	2.22B	2.64B
Cash Only	2.23B	2.26B	11.51B	10.43B	10.44B	12.9B	3.88B	2.49B	2.22B	2.64B
Short-Term Investments	154.6M	180.7M	341.8M	632.4M	863.6M	0	0	0	0	0
Accounts Receivable	6.8B	12.3B	12.47B	13.01B	11.82B	10.49B	10.79B	11.81B	7.33B	10.8B
Days Sales Outstanding	202.84	301.46	346.14	364.05	326.06	318.92	307.78	298.75	180.19	267.47
Inventory	329M	400.4M	9.22B	8.22B	0	0	0	0	0	0
Days Inventory Outstanding	12.37	12.34	321.24	284.28	-	-	-	-	-	-
Other Current Assets	3.63B	4.24B	234.7M	198.7M	627.9M	347.1M	443.2M	560.3M	4.16B	0
Total Non-Current Assets+	15.37B	19.13B	18.43B	17.85B	15.83B	12.19B	12.54B	13.72B	12.68B	11.85B
Property, Plant & Equipment	797.7M	968.7M	979.5M	1.08B	2.61B	2.3B	2.29B	2.53B	2.21B	2.29B
Fixed Asset Turnover	15.34x	15.37x	13.42x	12.05x	5.07x	5.23x	5.59x	5.70x	6.71x	6.43x
Goodwill	10.67B	13.21B	12.87B	13.13B	10.11B	7.39B	7.61B	8.45B	8.39B	7.61B
Intangible Assets	1.72B	2.22B	2.02B	1.84B	1.47B	1.39B	1.36B	1.45B	849.9M	737M
Long-Term Investments	1.92B	2.38B	2.22B	1.46B	1.31B	0	0	0	619.2M	651M
Other Non-Current Assets	272.8M	345.3M	336.5M	333M	325.5M	899M	930.4M	967.6M	610.1M	556M
Total Assets+	29.07B	35.03B	43.04B	42.22B	39.58B	36.17B	27.87B	28.82B	26.62B	25.51B
Asset Turnover	0.42x	0.43x	0.31x	0.31x	0.33x	0.33x	0.46x	0.50x	0.56x	0.58x
Asset Growth %	0.08%	0.21%	0.23%	-0.02%	-0.06%	-0.09%	-0.23%	0.03%	-0.08%	-0.04%
Total Current Liabilities+	14.22B	16.77B	24.97B	25.02B	24.05B	23.23B	16.49B	17.71B	16.25B	15.52B
Accounts Payable	8.54B	10.31B	14.24B	15.02B	14.19B	10.21B	10.6B	11.18B	10.83B	10.64B
Days Payables Outstanding	320.99	317.61	495.86	519.27	478.39	372.99	364.98	343.27	320.58	315.91
Short-Term Debt	932M	1B	10.08B	9.45B	8.8B	8.62B	567.2M	1.17B	946.3M	584M
Deferred Revenue (Current)	1000K	1000K	0	0	0	0	0	0	0	0
Other Current Liabilities	3.07B	3.39B	649.3M	545.9M	766M	1.16B	1.4B	1.68B	4.19B	1.34B
Current Ratio	0.94x	0.92x	0.99x	0.97x	0.99x	1.03x	0.93x	0.85x	0.86x	0.88x
Quick Ratio	0.92x	0.90x	0.62x	0.65x	0.99x	1.03x	0.93x	0.85x	0.86x	0.88x
Cash Conversion Cycle	-105.78	-3.81	171.52	129.07	-	-	-	-	-	-
Total Non-Current Liabilities+	6.52B	8.04B	8.11B	7.42B	7.23B	7.89B	7.32B	6.95B	6.54B	6.26B
Long-Term Debt	4.66B	5.56B	6.25B	5.63B	4.05B	4.98B	4.22B	3.8B	3.77B	3.74B
Capital Lease Obligations	0	0	0	0	1.95B	1.83B	1.76B	1.93B	1.86B	1.78B
Deferred Tax Liabilities	0	0	0	0	0	304.1M	312.5M	350.8M	178.5M	142M
Other Non-Current Liabilities	1.86B	2.47B	1.86B	1.79B	1.24B	777.8M	1.02B	873M	723.2M	593M
Total Liabilities	21.05B	25.26B	33.08B	32.44B	31.29B	31.12B	23.8B	24.66B	22.79B	21.77B
Total Debt+	5.59B	6.57B	16.33B	15.08B	15.1B	15.75B	6.83B	7.18B	6.88B	6.35B
Net Debt	3.37B	4.31B	4.82B	4.65B	4.65B	2.85B	2.94B	4.69B	4.66B	3.71B
Debt / Equity	0.70x	0.67x	1.64x	1.54x	1.82x	3.12x	1.68x	1.73x	1.79x	1.70x
Debt / EBITDA	2.80x	2.64x	8.03x	8.87x	9.35x	5.41x	3.85x	3.84x	4.03x	3.49x
Net Debt / EBITDA	1.68x	1.73x	2.37x	2.73x	2.88x	0.98x	1.66x	2.51x	2.73x	2.04x
Interest Coverage	7.62x	8.42x	6.08x	4.58x	3.68x	7.30x	4.33x	3.78x	1.37x	3.18x
Total Equity+	8.02B	9.77B	9.96B	9.78B	8.3B	5.05B	4.07B	4.16B	3.83B	3.73B
Equity Growth %	0.02%	0.22%	0.02%	-0.02%	-0.15%	-0.39%	-0.19%	0.02%	-0.08%	-0.03%
Book Value per Share	30.52	37.68	39.04	38.79	32.91	20.43	16.74	18.63	17.52	17.02
Total Shareholders' Equity	7.64B	9.32B	9.49B	9.36B	7.93B	4.73B	3.62B	3.68B	3.38B	3.48B
Common Stock	132.9M	133.2M	133.3M	133.3M	132.8M	129.6M	122.4M	114.1M	114.1M	109M
Retained Earnings	7.7B	8.41B	8.84B	8.95B	8.58B	4.96B	4.37B	3.76B	3.49B	2.47B
Treasury Stock	-719.6M	-962M	-1.17B	-1.26B	-1.18B	-1.12B	-1.11B	-1.05B	-990.1M	-191M
Accumulated OCI	-9.7M	1.19B	1.12B	962.4M	-174.7M	0	0	0	186.6M	505M
Minority Interest	378.4M	443.1M	468.8M	424.4M	371.4M	318.1M	452.6M	479.6M	457.1M	259M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1.36B	1.77B	1.41B	1.69B	1.85B	2.05B	2.03B	700.9M	1.24B	1.41B
Operating CF Margin %	0.11%	0.12%	0.11%	0.13%	0.14%	0.17%	0.16%	0.05%	0.08%	0.1%
Operating CF Growth %	-0.2%	0.3%	-0.21%	0.2%	0.09%	0.11%	-0.01%	-0.65%	0.77%	0.14%
Net Income	1.16B	1.4B	1.96B	824.6M	844.1M	-2.9B	720.7M	775.4M	197.2M	629M
Depreciation & Amortization	368.5M	427.8M	456.1M	454.7M	637.3M	631M	541.8M	513.1M	1.17B	494M
Stock-Based Compensation	99M	106.5M	98.3M	78.3M	66M	74.4M	99.6M	122M	140.1M	109M
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	609.7M	179.4M	-749M	671.4M	347.5M	3.41B	-35.1M	137.1M	-13.5M	-9M
Working Capital Changes	-877.5M	-340M	-361M	-335.2M	-44.4M	838.2M	702M	-846.7M	-260.2M	185M
Change in Receivables	-882.7M	23.7M	-90.4M	-298.9M	159M	708.5M	-578.9M	-652.7M	356.8M	325M
Change in Inventory	7.8M	0	0	0	0	0	0	0	0	0
Change in Payables	0	0	0	0	0	0	0	0	0	31M
Cash from Investing+	-926.1M	-974.5M	-547M	74.6M	1.76B	-163.4M	-638.4M	-408.9M	-380.4M	278M
Capital Expenditures	-210.3M	-252.1M	-288.9M	-314.8M	-339.3M	-218.3M	-263.2M	-208.4M	-177.2M	-189M
CapEx % of Revenue	0.02%	0.02%	0.02%	0.02%	0.03%	0.02%	0.02%	0.01%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-329.5M	-343.8M	126.9M	625M	2.23B	-43.2M	-21.2M	-2M	-35.2M	67M
Cash from Financing+	-704M	-1.19B	-785.6M	-1.61B	-2.92B	-250.5M	-2.06B	-1.91B	-904.7M	-989M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-545.8M	-616.5M	-751.5M	-747.4M	-750.5M	-122M	-314.7M	-365.4M	-422.8M	-425M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-62.6M	-127.1M	-129.5M	-218.7M	-164.7M	-471.1M	-531.1M	-463.5M	-333.8M	-443M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	1.15B	1.52B	1.12B	1.38B	1.51B	1.78B	1.74B	477.6M	1.02B	1.17B
FCF Margin %	0.09%	0.1%	0.09%	0.11%	0.11%	0.15%	0.14%	0.03%	0.07%	0.08%
FCF Growth %	-0.25%	0.32%	-0.26%	0.23%	0.1%	0.18%	-0.02%	-0.72%	1.14%	0.15%
FCF per Share	4.38	5.87	4.39	5.47	5.99	7.19	7.14	2.14	4.67	5.34
FCF Conversion (FCF/Net Income)	1.17x	1.27x	0.72x	2.05x	2.19x	-0.69x	3.18x	1.03x	11.22x	2.60x
Interest Paid	212M	242.1M	246.6M	252.8M	375.7M	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	14.65%	15.75%	19.91%	8.35%	9.34%	-44.43%	13.99%	16.59%	2.76%	14.33%
Return on Invested Capital (ROIC)	11.11%	12.15%	8.2%	6.39%	7.1%	16.39%	12.36%	12.84%	4.59%	12.47%
Gross Margin	20.65%	20.43%	20.27%	19.07%	18.2%	16.79%	17.21%	17.59%	16.97%	16.63%
Net Margin	9.48%	9.4%	14.94%	6.32%	6.38%	-24.7%	4.98%	4.73%	0.74%	3.68%
Debt / Equity	0.70x	0.67x	1.64x	1.54x	1.82x	3.12x	1.68x	1.73x	1.79x	1.70x
Interest Coverage	7.62x	8.42x	6.08x	4.58x	3.68x	7.30x	4.33x	3.78x	1.37x	3.18x
FCF Conversion	1.17x	1.27x	0.72x	2.05x	2.19x	-0.69x	3.18x	1.03x	11.22x	2.60x
Revenue Growth	6.13%	21.68%	-11.69%	-0.76%	1.44%	-9.3%	6.65%	12.71%	2.88%	-0.7%

Revenue by Geography

	2017	2018	2019	2020	2021	2022	2023	2024
North America	4.8B	4.47B	8.89B	-	-	10.24B	5.53B	5.57B
North America Growth	-	-6.77%	98.67%	-	-	-	-46.01%	0.71%
UNITED STATES	4.54B	-	8.38B	-	-	9.72B	5.19B	5.2B
UNITED STATES Growth	-	-	-	-	-	-	-46.64%	0.31%
Country US	-	-	-	90.6M	117.2M	-	-	-
Country US Growth	-	-	-	-	29.36%	-	-	-
Asia Pacific Latin America Africa And Middle East And Central And Eastern Europe	4.04B	3.93B	-	-	-	-	-	-
Asia Pacific Latin America Africa And Middle East And Central And Eastern Europe Growth	-	-2.86%	-	-	-	-	-	-
Western Continental Europe	2.62B	2.74B	-	-	-	-	-	-
Western Continental Europe Growth	-	4.56%	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

WPP plc (WPP) has a price-to-earnings (P/E) ratio of 8.8x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

WPP plc (WPP) reported $29.03B in revenue for fiscal year 2024. This represents a 190% increase from $10.02B in 2011.

WPP plc (WPP) saw revenue decline by 0.7% over the past year.

Yes, WPP plc (WPP) is profitable, generating $584.4M in net income for fiscal year 2024 (3.7% net margin).

Dividend & Returns

Yes, WPP plc (WPP) pays a dividend with a yield of 9.01%. This makes it attractive for income-focused investors.

WPP plc (WPP) has a return on equity (ROE) of 14.3%. This is reasonable for most industries.

WPP plc (WPP) generated $1.73B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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