WPP (WPP) AI Stock Analysis

• Market Cap: £2.93B
• Dividend Yield: 11.43%
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.23
• Revenue Growth: -4.54%
• EPS Growth: 86.79%
• Country: UK
• Employees: 108,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 1,078,802,400
• 10 Day Avg. Volume: 4,215,497
• 30 Day Avg. Volume: 4,298,428
• PEG Ratio: 0.04
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £376.88
• Price Target Upside: 35.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 327.00p ▲(17.16% Upside)

WPP's overall stock score is driven by solid financial performance and attractive valuation, offset by bearish technical indicators. The company's strong cash flow and operational efficiency are positive, but high leverage and stagnant revenue growth pose risks. The low P/E ratio and high dividend yield suggest potential undervaluation, but the current downtrend in stock price indicates caution.

Positive Factors

Cash Flow Management

Strong cash flow management enhances WPP's ability to invest in growth opportunities and sustain operations, providing a buffer against economic fluctuations.

Operational Efficiency

High EBIT and EBITDA margins indicate effective cost management and operational efficiency, contributing to sustained profitability and competitive positioning.

Return on Equity

Improved return on equity signifies effective use of shareholder funds to generate profits, enhancing investor confidence and supporting long-term growth.

Negative Factors

Revenue Growth

Negative revenue growth indicates challenges in expanding market share and customer base, which could impact long-term strategic objectives and competitiveness.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth and respond to market changes.

Net Profit Margin

Low net profit margin, despite improvement, suggests challenges in converting revenue into profit, which could hinder long-term financial health and shareholder returns.

WPP Business Overview & Revenue Model

Company Description

WPP is a leading global communications services group that provides a wide range of marketing and advertising solutions. Operating in over 100 countries, WPP encompasses multiple sectors including advertising, media investment management, data investment management, public relations, branding and identity, and digital marketing. The company is known for its diverse portfolio of agencies, which offer services such as creative development, media planning and buying, content creation, and performance marketing, catering to a broad spectrum of industries and clients worldwide.

How the Company Makes Money

WPP generates revenue through a variety of channels primarily by charging clients for its advertising and marketing services. Its revenue model is largely based on project fees, retainers, and commissions on media spending. Key revenue streams include fees for creative services, media buying, and data analytics, with a significant portion of earnings coming from long-term contracts with major brands. Additionally, WPP benefits from performance-related incentives tied to the effectiveness of its campaigns. The company also engages in partnerships and acquisitions to expand its offerings and enhance its market presence, further contributing to its revenue growth. Factors such as digital transformation, increasing demand for integrated marketing solutions, and client retention play crucial roles in sustaining WPP's earnings.

WPP Financial Statement Overview

Summary

WPP demonstrates solid operational efficiency and cash flow management, with improving profit margins and cash conversion. However, growth in revenue has stagnated, and the balance sheet reflects high leverage which may pose a risk if not managed carefully. The company needs to focus on enhancing revenue growth while managing its debt levels.

Income Statement

WPP showed strong EBIT and EBITDA margins at 8.99% and 13.18% respectively in 2024, indicative of good operational efficiency. However, the net profit margin improved to 3.68% from a low base, reflecting challenges in translating revenue into net income. Revenue growth was slightly negative in 2024, signaling a need to enhance top-line performance.

Balance Sheet

The company's debt-to-equity ratio is high at 1.83, suggesting significant leverage. However, return on equity improved to 15.60% in 2024, indicating effective use of equity to generate profit. The equity ratio is relatively low at 13.63%, highlighting a potential risk with high liabilities compared to assets.

Cash Flow

WPP's free cash flow grew by 14.81% in 2024, showing strong cash generation. The operating cash flow to net income ratio improved, indicating better cash conversion, while the free cash flow to net income ratio is robust, emphasizing strong cash flow relative to net income.

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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	74 Outperform	£921.11M	10.11	86.56%	1.85%	-2.60%	3.10%
WPP	66 Neutral	£2.93B	7.69	11.44%	11.43%	-4.54%	86.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
YOU	59 Neutral	£299.37M	22.16	7.16%	3.42%	15.99%	―
NFG	58 Neutral	£377.46M	23.76	9.53%	4.79%	-5.98%	-74.21%
SAA	57 Neutral	£160.00M	20.89	18.23%	1.12%	-21.19%	-29.54%
SFOR	45 Neutral	£146.52M	-0.44	-45.75%	4.95%	-14.27%	-15466.67%

WPP Corporate Events

WPP Faces Revenue Decline, Initiates Strategic Review for Growth

WPP’s third-quarter 2025 trading update reveals a challenging period with revenue down 8.4% year-over-year and a like-for-like decline of 3.5%. The company has revised its full-year organic growth guidance to a decline of 5.5% to 6.0% and is undergoing a strategic review to return to growth. CEO Cindy Rose has outlined plans to simplify and integrate offerings, enhance execution, and expand into enterprise and technology solutions. Key initiatives include leadership changes, an extended partnership with Google, and the launch of WPP Open Pro, an AI platform for marketing. Despite the current downturn, WPP is optimistic about building a high-performance culture and improving financial performance, with further details to be shared in the new year.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Launches WPP Open Pro: A New AI Marketing Platform

WPP has launched WPP Open Pro, an advanced AI marketing platform designed to allow brands to independently plan, create, and publish campaigns. This new platform is set to expand WPP’s reach in the global advertising market by providing brands of all sizes with access to WPP’s AI capabilities, thus transforming marketing delivery and expanding the company’s addressable market. By integrating strategy, content creation, and performance optimization, WPP Open Pro offers a comprehensive solution that caters to both large enterprises and smaller businesses, enabling them to rapidly generate and deploy campaigns with consistency and compliance.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Announces Board Committee Membership Change

WPP has announced a change in its Board Committee membership, with Keith Weed joining the Nomination and Governance Committee effective 15 October 2025. This change reflects WPP’s ongoing efforts to strengthen its governance structure, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £480.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Grants Conditional Share Award to CEO Cindy Rose

WPP has granted a conditional share award to its CEO, Cindy Rose, under the 2022 Executive Performance Share Plan. This award compensates for incentives she forfeited upon leaving her previous employer and is set to vest in tranches from December 2025 to September 2030, contingent on her continued employment.

The most recent analyst rating on (GB:WPP) stock is a Buy with a £439.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Updates Share Capital and Voting Rights Information

WPP has announced that as of August 29, 2025, its issued share capital consisted of 1,091,394,251 ordinary shares, with 12,591,893 held in treasury, resulting in a total of 1,078,802,358 voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:WPP) stock is a Sell with a £360.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Announces Retirement of COO Andrew Scott

WPP announced the retirement of Andrew Scott as Chief Operating Officer and Board member by the end of the year. Scott, who joined WPP in 1999, has significantly contributed to the company’s growth and strategic direction, particularly in mergers and acquisitions, and will assist in transitioning his responsibilities to other executives while supporting strategy execution.

The most recent analyst rating on (GB:WPP) stock is a Sell with a £360.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Reports Challenging H1 2025 with Strategic Repositioning Efforts

WPP reported a challenging first half of 2025, with revenue and operating profit margins declining compared to the previous year. Despite these challenges, the company has made significant progress in repositioning WPP Media and enhancing its data and AI capabilities through strategic acquisitions and initiatives. The interim dividend was set at 7.5p, reflecting a strategic review and future capital allocation policy. WPP continues to focus on sustainable growth and financial flexibility, with a commitment to investing in AI and data to improve competitiveness and client services.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £730.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Announces Total Voting Rights and Capital Update

WPP PLC has announced its total voting rights and capital as of July 31, 2025. The company reported an issued share capital consisting of 1,091,394,251 ordinary shares, with 12,591,893 held in treasury, resulting in 1,078,802,358 total voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:WPP) stock is a Sell with a £485.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.