WPP WPP.L
WPP is a British multinational advertising and public relations company that offers communication, marketing, and digital transformation services to large brands through agencies like Ogilvy and GroupM. WPP shows very weak financial health (net debt/EBITDA of 8.31) and deeply negative growth (earnings -57.5%), justifying its low scores. Its valuation looks cheap (forward P/E 7.06, FCF yield 17.65%), but it is a value trap if the business does not stabilize.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
WPP is a British multinational advertising and public relations company that offers communication, marketing, and digital transformation services to large brands through agencies like Ogilvy and GroupM. WPP shows very weak financial health (net debt/EBITDA of 8.31) and deeply negative growth (earnings -57.5%), justifying its low scores. Its valuation looks cheap (forward P/E 7.06, FCF yield 17.65%), but it is a value trap if the business does not stabilize.
Score by category
| Category | Score |
|---|---|
| Financial health | 1.4 |
| Quality / Moat | 3.8 |
| Valuation | 5.0 |
| Growth | 0.9 |
| Dividend | 0.7 |
| Momentum | 6.0 |
| Risk & Context | 7.3 |
OVERALL SCORE: 3.9/10
Context and risks
WPP has a very high net debt/EBITDA of 8.31, and its advertising business is sensitive to the economic cycle. The context of rising interest rates in the UK (ECB hiking) makes its debt service more expensive, although the effect is already partially reflected in its low financial health score.
News considered in the analysis
- Guinness owner Diageo hires WPP CFO with cost-cutting bonafides — La salida del CFO de WPP hacia Diageo es una pérdida de talento ejecutivo, pero no afecta materialmente a los fundamentales; el mercado ya lo ha descontado parcialmente.
- Diageo brings in former Britvic, Tesco executive Joanne Wilson as CFO — Noticia sobre Diageo, no sobre WPP; sin impacto directo en la empresa analizada.
- European Equities Traded in the US as American Depositary Receipts Edge Higher in Friday Trading; Down for Week — Movimiento de mercado genérico sin información específica sobre WPP.
- CFOs On the Move: Week ending Sept. 25 — Listado de movimientos de CFOs; ruido sin impacto valorativo.
- When Everything’s Priced at a Premium, Where Do Tech Brands Find New Buyers? — Artículo de opinión sobre el sector tecnológico; sin información nueva sobre WPP.
Verdict: Avoid until a stabilization of the business and a significant reduction in leverage are confirmed.
Main risk: Extreme leverage (net debt/EBITDA of 8.31) combined with a structurally declining business and an uncovered dividend (payout 113.87%) is the biggest risk for WPP.
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