# WPP (WPP.LSE)

Canonical: https://gigainvestors.com/s/WPP.LSE

Analysis as of: 2026-10-16T07:37:08.827Z. Financial observations: FY1996–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 400.40 per share; close as of 2026-10-15.

Estimated value: low GBX 569.13 per share, central GBX 620.84 per share, high GBX 689.67 per share. Buy at or below the central value GBX 620.84 per share. Valuation as of 2026-10-16T07:37:08.827Z; scenarios are not confidence intervals.

Expected annual return: 17.9% at the stated quote. About 17.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 2

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.12×

- FY2018: 0.10×

- FY2019: 0.10×

- FY2020: 0.19×

- FY2021: 0.10×

- FY2022: 0.09×

- FY2023: 0.04×

- FY2024: 0.09×

- FY2025: 0.09×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.8%

- ROIC, second-lowest year: 8.4%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 17.4%

- Recent gross margin (lower of latest and 3-year median): 15.8%

- Years with nonpositive capital: 5

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 5.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: 14.3%

- FY2018: 10.8%

- FY2019: 61.7%

- FY2020: >100%

- FY2021: 8.9%

- FY2022: 8.4%

- FY2023: 3.4%

- FY2024: 8.8%

- FY2025: 8.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 1.6B

- Net income, five-year total: GBP 1.8B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -8.2 pp

- Working capital / revenue, change between three-year averages: -73.4 pp

- Working capital / revenue, final three-year average: -33.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.75×

- FY2022: 0.80×

- FY2023: 3.67×

- FY2024: 0.73×

- FY2025: 1.11×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 14.3% vs 8.7%

- Per-share earnings: 1.46 to 0.10 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.1%

- Ordinary dilution, 5-year annual growth: -2.5%

- Market cap gain: GBP -14B

- Cumulative retained earnings: GBP -6.4B

- Diluted shares, 10-year annual growth: -1.1%

- Diluted shares, 5-year annual growth: -2.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -28.2%

- Per-share value change: GBP -1.35

- Per-share value, starting three-year median: GBP 1.46

- Per-share value, ending three-year median: GBP 0.10

- Buybacks concentrated in cheaper years (correlation): 0.07

- Average buyback yield: 3.1%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 4.3B

- Cumulative net income, 10 years: GBP 3.8B

- ROIC, first three-year median: 14.3%

- ROIC, last three-year median: 8.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 1.46

- FY2017: GBP 1.67

- FY2018: GBP 0.70

- FY2019: GBP 0.67

- FY2020: GBP -2.43

- FY2021: GBP 0.53

- FY2022: GBP 0.62

- FY2023: GBP 0.10

- FY2024: GBP 0.50

- FY2025: GBP -0.20

### accounting: pass

- Sloan accruals: -3.9%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 3.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: 1.3%

- FY2018: -2.1%

- FY2019: -2.5%

- FY2020: -13.9%

- FY2021: -5.0%

- FY2022: -0.1%

- FY2023: -4.2%

- FY2024: -3.4%

- FY2025: -3.9%

## Holders

## Price story

Down 65% since Jan 2022 · "WPP’s annual outlook cut once again after ‘unacceptable’ performance" (uk.finance.yahoo.com, Oct 2025) · sales -8.1%

Story as of 2026-10-16T10:00:08.685Z; price observation 2026-10-15.

Price needs cash profits to shrink 8.3% a year for ten years

- 2025-10-30: WPP’s annual outlook cut once again after ‘unacceptable’ performance ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wpp-annual-outlook-cut-once-091255157.html))

- 2026-02-26: Advertising giant WPP to cut £500m in costs in radical overhaul ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/advertising-giant-wpp-cut-500m-084824282.html))

- 2026-08-06: WPP axes jobs in cost-cutting efforts to drive profit recovery ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/wpp-axes-jobs-cost-cutting-083246757.html))

### Sales · FY2024–2025

sales -8.1%; source https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml; observed 2026-03-24.

- FY2016: GBP 15B 

- FY2017: GBP 13B 

- FY2018: GBP 13B 

- FY2019: GBP 13B 

- FY2020: GBP 12B 

- FY2021: GBP 13B 

- FY2022: GBP 14B 

- FY2023: GBP 15B 

- FY2024: GBP 15B 

- FY2025: GBP 14B 

### Gross margin · FY2025

gross margin 15.8%; source https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml; observed 2026-03-24.

- FY2016: 20.4% 

- FY2017: 20.3% 

- FY2018: 19.1% 

- FY2019: 18.2% 

- FY2020: 16.8% 

- FY2021: 17.2% 

- FY2022: 17.6% 

- FY2023: 17.0% 

- FY2024: 16.6% 

- FY2025: 15.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in advertising agencies; annual sales are GBP 13.6 billion.

- Source: https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml (filed 2026-03-24); FY2025: revenue 13550000000; grossProfit 2146000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WPP.LSE: WPP 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 marketing strategy, creative ideation, production, commerce, influencer marketing, social media management, and technology implementation services; media strategy, planning, buying and activation, commerce media, data analytics, and consulting services; and media management, public affairs, reputation, risk and crisis management, social media management, and strategic advisory services. The company also provides brand consulting, brand identity, product and service design, and corporate and brand publication services. WPP plc was founded in 1985 and is based in London, the United Kingdom.

### Why customers stay

Margins ranged from 15.8% to 17% during 2023–25; it earns 9.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: grossProfit / revenue = 17%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: grossProfit / revenue = 16.6%.

- Source: https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml (filed 2026-03-24); FY2025: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); 10-year return on capital observations [[2016,6.808034794926681],[2017,0.14287697902665392],[2018,0.10760153671257326],[2019,0.6166025096935497],[2020,9.224495130702204],[2021,0.08921240039335228],[2022,0.08359660173952528],[2023,0.033668572097469616],[2024,0.08767688078998269],[2025,0.08738796414852752]]; median 0.09840696855296277. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 18% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml (filed 2026-03-24); Gross margin observations: [[2021,0.172141456593574],[2022,0.17594100646627903],[2023,0.16968904936408707]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 97 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2016: growth capex 0; upkeep 252100000; owner earnings 1575800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2017: growth capex 0; upkeep 288900000; owner earnings 2130900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2018: growth capex 0; upkeep 314800000; owner earnings 964500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2019: growth capex 0; upkeep 394100000; owner earnings 686360000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2021: growth capex 0; upkeep 293100000; owner earnings 478040000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2022: growth capex 0; upkeep 223300000; owner earnings 548590038.6897086. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: growth capex 0; upkeep 217200000; owner earnings 405154563.8945233. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: growth capex 0; upkeep 236000000; owner earnings 396000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Dividend observations: [[2016,616500000],[2017,751500000],[2018,747400000],[2019,750500000],[2020,122000000],[2021,314700000],[2022,365400000],[2023,422800000],[2024,425000000],[2025,343000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml (filed 2026-03-24); FY2025: cash repurchases 97000000 GBP.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WPP.LSE SharesStats.PercentInsiders = 0.27999999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 8.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Ten-year compound average after fade. Initial solved rate -0.12868490315089448. Price 400.4; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.0936204286039808 → FY2025 -0.22100185652693077. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,778.00 per share

- 2016-11: GBX 1,709.00 per share

- 2016-12: GBX 1,816.00 per share

- 2017-01: GBX 1,844.00 per share

- 2017-02: GBX 1,897.00 per share

- 2017-03: GBX 1,752.00 per share

- 2017-04: GBX 1,653.00 per share

- 2017-05: GBX 1,744.00 per share

- 2017-06: GBX 1,614.00 per share

- 2017-07: GBX 1,546.00 per share

- 2017-08: GBX 1,420.00 per share

- 2017-09: GBX 1,385.00 per share

- 2017-10: GBX 1,334.00 per share

- 2017-11: GBX 1,307.00 per share

- 2017-12: GBX 1,341.00 per share

- 2018-01: GBX 1,278.00 per share

- 2018-02: GBX 1,394.00 per share

- 2018-03: GBX 1,132.50 per share

- 2018-04: GBX 1,247.50 per share

- 2018-05: GBX 1,232.50 per share

- 2018-06: GBX 1,193.00 per share

- 2018-07: GBX 1,192.00 per share

- 2018-08: GBX 1,278.50 per share

- 2018-09: GBX 1,124.50 per share

- 2018-10: GBX 888.60 per share

- 2018-11: GBX 865.80 per share

- 2018-12: GBX 846.60 per share

- 2019-01: GBX 869.80 per share

- 2019-02: GBX 825.80 per share

- 2019-03: GBX 810.80 per share

- 2019-04: GBX 956.40 per share

- 2019-05: GBX 941.20 per share

- 2019-06: GBX 990.20 per share

- 2019-07: GBX 970.40 per share

- 2019-08: GBX 970.20 per share

- 2019-09: GBX 1,018.00 per share

- 2019-10: GBX 963.20 per share

- 2019-11: GBX 1,000.50 per share

- 2019-12: GBX 1,066.50 per share

- 2020-01: GBX 945.00 per share

- 2020-02: GBX 752.80 per share

- 2020-03: GBX 551.40 per share

- 2020-04: GBX 621.20 per share

- 2020-05: GBX 611.60 per share

- 2020-06: GBX 630.80 per share

- 2020-07: GBX 568.00 per share

- 2020-08: GBX 645.60 per share

- 2020-09: GBX 608.00 per share

- 2020-10: GBX 616.60 per share

- 2020-11: GBX 725.60 per share

- 2020-12: GBX 800.00 per share

- 2021-01: GBX 765.80 per share

- 2021-02: GBX 853.80 per share

- 2021-03: GBX 920.60 per share

- 2021-04: GBX 975.60 per share

- 2021-05: GBX 974.00 per share

- 2021-06: GBX 974.20 per share

- 2021-07: GBX 930.00 per share

- 2021-08: GBX 983.60 per share

- 2021-09: GBX 1,000.50 per share

- 2021-10: GBX 1,056.00 per share

- 2021-11: GBX 1,042.00 per share

- 2021-12: GBX 1,119.50 per share

- 2022-01: GBX 1,151.50 per share

- 2022-02: GBX 1,057.50 per share

- 2022-03: GBX 1,003.00 per share

- 2022-04: GBX 1,005.00 per share

- 2022-05: GBX 920.60 per share

- 2022-06: GBX 824.60 per share

- 2022-07: GBX 883.80 per share

- 2022-08: GBX 744.40 per share

- 2022-09: GBX 750.00 per share

- 2022-10: GBX 766.00 per share

- 2022-11: GBX 865.60 per share

- 2022-12: GBX 820.20 per share

- 2023-01: GBX 943.80 per share

- 2023-02: GBX 1,024.00 per share

- 2023-03: GBX 958.60 per share

- 2023-04: GBX 927.20 per share

- 2023-05: GBX 853.80 per share

- 2023-06: GBX 823.40 per share

- 2023-07: GBX 851.60 per share

- 2023-08: GBX 765.80 per share

- 2023-09: GBX 733.00 per share

- 2023-10: GBX 706.60 per share

- 2023-11: GBX 706.80 per share

- 2023-12: GBX 753.00 per share

- 2024-01: GBX 771.40 per share

- 2024-02: GBX 707.20 per share

- 2024-03: GBX 753.60 per share

- 2024-04: GBX 808.20 per share

- 2024-05: GBX 816.80 per share

- 2024-06: GBX 724.40 per share

- 2024-07: GBX 750.60 per share

- 2024-08: GBX 724.20 per share

- 2024-09: GBX 763.20 per share

- 2024-10: GBX 813.80 per share

- 2024-11: GBX 859.20 per share

- 2024-12: GBX 827.40 per share

- 2025-01: GBX 773.40 per share

- 2025-02: GBX 644.00 per share

- 2025-03: GBX 581.20 per share

- 2025-04: GBX 576.20 per share

- 2025-05: GBX 599.40 per share

- 2025-06: GBX 512.60 per share

- 2025-07: GBX 410.00 per share

- 2025-08: GBX 390.90 per share

- 2025-09: GBX 367.80 per share

- 2025-10: GBX 287.50 per share

- 2025-11: GBX 303.80 per share

- 2025-12: GBX 337.50 per share

- 2026-01: GBX 301.80 per share

- 2026-02: GBX 275.00 per share

- 2026-03: GBX 233.50 per share

- 2026-04: GBX 267.20 per share

- 2026-05: GBX 281.70 per share

- 2026-06: GBX 235.80 per share

- 2026-07: GBX 298.70 per share

- 2026-08: GBX 382.60 per share

- 2026-09: GBX 376.10 per share

- 2026-10: GBX 400.40 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 2,400.18 per share, central GBX 3,257.23 per share, high GBX 3,783.24 per share

- FY2017: low GBX 1,717.94 per share, central GBX 2,234.01 per share, high GBX 2,585.01 per share

- FY2018: low GBX 1,604.77 per share, central GBX 1,918.18 per share, high GBX 2,202.67 per share

- FY2019: low GBX 2,086.12 per share, central GBX 2,253.23 per share, high GBX 2,475.71 per share

- FY2020: low GBX 1,830.65 per share, central GBX 1,940.15 per share, high GBX 2,085.90 per share

- FY2021: low GBX 905.75 per share, central GBX 989.02 per share, high GBX 1,099.86 per share

- FY2022: low GBX 724.73 per share, central GBX 800.23 per share, high GBX 900.74 per share

- FY2023: low GBX 664.08 per share, central GBX 741.84 per share, high GBX 845.36 per share

- FY2024: low GBX 624.85 per share, central GBX 681.06 per share, high GBX 755.88 per share

- FY2025: low GBX 599.84 per share, central GBX 651.55 per share, high GBX 720.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300LSGBXPYHXGDT93/2025-12-31/ESEF/GB/0/549300LSGBXPYHXGDT93-2025-12-31/reports/549300LSGBXPYHXGDT93-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-03-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations