WPP plc (WPP.L) stock analysis

In our weekly check, WPP plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 11 pass, warnings: 3, red flags: 9.

About WPP plc

WPP plc is a Communication Services company (Advertising Agencies) based in the United Kingdom, listed on LSE as WPP.L.

What our checks show for WPP.L

Red flags

• Net debt is 2.5x a year of EBITDA (debt/equity 2.76). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 6.6 points over 5 years, to -1.6%: the company keeps less of each sale as profit.
• Analysts expect revenue to shrink about 9.8% a year.
• Revenue fell 2.1% a year over the last 3 years.
• Earnings per share fell 31.4% a year over the last 3 years.
• The company is losing money: the net margin is -1.6%.
• WPP plc pays a dividend while losing money: it is funded from reserves or debt.
• The price swings a lot: 50.3% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 88% from a peak. Would you have held through that?

Warning signs

• The gross margin fell by 1.4 points, to 15.8%: costs are rising faster than prices.
• Free cash flow is only 4.7% of revenue.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 3.37x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 44.5% a year over the next years.
• Analysts expect the net margin to improve by 8.2 points from today's -1.6%.
• Actively traded: about 5.4 million shares a day.
• Pay in shares is only 11.5% of free cash flow.

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TTD · MGNI · PTRN · STGW · ZD

Questions

What grade does WPP plc (WPP.L) have?

In our weekly check, WPP plc is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 11 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WPP.L stock?

This week's biggest flags for WPP plc: High debt, Margins falling, Weak revenue forecast. In total 12 of 23 checks show a warning or a red flag.

What does WPP plc do?

WPP plc is a Communication Services company (Advertising Agencies) based in the United Kingdom, listed on LSE as WPP.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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