Recent News
On July 9, 2025 WPP issued a trading update that reduced full-year like‑for‑like revenue guidance to a decline of 3%–5% and forecast a headline operating margin contraction of 50–175 basis points. On July 10, 2025 the board named Microsoft executive Cindy Rose as incoming CEO, effective September 1, 2025. Analysts responded with lowered targets and downgrades following the update, including a Morgan Stanley price‑target cut and CFRA downgrade.
Technical Analysis
ADX / DI+ / DI‑: ADX at 17.61 indicates no dominant trend. DI+ at 24.82 shows a recent peak-and-reversal (DI+ decreasing), while DI‑ at 30.63 shows a dip-and-reversal (DI‑ increasing); both directional indicators signal bearish directional pressure and suggest near‑term downside bias relative to valuation.
MACD: MACD stands negative at -0.26 with a peak-and-reversal pattern, signaling bearish momentum; the signal line at -0.37 sits below MACD, so the current MACD value sits above its signal line (a bullish crossover observation), producing a mixed short‑term momentum picture.
MRO (Momentum/Regression Oscillator): MRO at -13.93 registers negative, indicating price below WMDST target and implying upward pressure toward fair value; the MRO peak-and-reversal note suggests that potential remains uneven and could produce short corrective strength against prevailing bearish momentum.
RSI: RSI reads 39.85 with a peak-and-reversal pattern, showing momentum below neutral and leaving room for a corrective bounce if buying interest returns; in context, RSI aligns with MACD and DI signals that momentum recently weakened.
Price Structure & Moving Averages: Last close $26.23 sits below the 20‑day average $26.75 and well below the 200‑day average $37.72, signaling short-term weakness within a materially lower long-term price framework; price crosses below the -1x Bollinger band, indicating a short-term overshoot below recent volatility bands.
Ichimoku / Chikou: Chikou span lies below the Ichimoku cloud and Tenkan/Kijun levels, reinforcing a bearish structural stance and lowering conviction in trend continuation until price re-enters the cloud zone.
Volume & Volatility: Current volume around 377,090 sits close to the 10‑day average and below the 50‑day average; 42‑ and 52‑week volatility at 0.02 suggest subdued realized volatility, which can compress moves and favor range trading unless a fresh catalyst emerges.
Fundamental Analysis
Valuation Overview: WMDST values the stock as over‑valued. Market price near $26.23 contrasts with a price target mean of $17.49, a price target low of $14.91 and a high of $38.53, leaving analysts’ central expectation below current market pricing.
Balance Sheet & Liquidity: Cash and short‑term investments total $1,437,000,000 while total debt reads $6,754,000,000 and net debt $3,344,000,000. Current ratio stands at 0.86, below the industry peer mean current ratio of 2.03522, indicating tighter near‑term liquidity coverage versus peers. Net working capital equals $-1,909,000,000, reflecting negative working capital.
Leverage: Debt‑to‑equity at 2.13 (≈213%) and debt‑to‑capital 0.681 indicate a leveraged capital structure; debt‑to‑equity sits above the industry peer mean of 1.10579 and the industry peer median of 0.90586, denoting materially higher leverage than typical peers.
Profitability & Cash Flow: Operating cash flow at $-449,000,000 and an operating cash flow ratio of -3.263% highlight negative operating cash conversion this period. Book value per share stands at $2.93 while forward EPS equals $1.41 and forward P/E about 26.6x; those forward multiples sit against a WMDST valuation of over‑valued given balance‑sheet strain and guidance cuts.
Growth Metrics: Revenue growth registers -100.00% and YoY revenue growth -200.00% as reported; asset growth rate at -8.291% QoQ P/B change at -27.099% and YoY P/B change at -22.776% further demonstrate contraction and re‑rating pressure. (All percent changes shown as provided.)
Peer Comparisons: P/B of 11.14 sits well above the industry peer mean of 1.69918 and the industry peer high of 4.7428, indicating a valuation multiple materially detached from typical peer multiples; current ratio and leverage comparisons further emphasize balance‑sheet and liquidity divergence from the industry peer mean and median.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | — |
| Operating Cash Flow | $ -449.00 M | |
| Capital Expenditures | — | |
| Change In Working Capital | — | |
| Dividends Paid | — | |
| Cash Flow Delta | — | |
| End Period Cash Flow | — | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | — | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | — | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | — | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | — | |
| Tax Provision | — | |
| Tax Rate | — | |
| Net Income | — | |
| Net Income From Continuing Operations | — | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 1.41 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 23.4 B | |
| Intangible Assets | $ 8.1 B | |
| Net Tangible Assets | $ -4.91 B | |
| Total Current Assets | $ 11.9 B | |
| Cash and Short-Term Investments | $ 1.4 B | |
| Cash | $ 1.4 B | |
| Net Receivables | $ 7.4 B | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 11.1 B | |
| Short-Term Debt | $ 936.0 M | |
| Total Current Liabilities | $ 13.8 B | |
| Net Debt | $ 3.3 B | |
| Total Debt | $ 6.8 B | |
| Total Liabilities | $ 20.0 B | |
| EQUITY | ||
| Total Equity | $ 3.2 B | |
| Retained Earnings | $ 2.8 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.93 | |
| Shares Outstanding | 1.079 B | |
| Revenue Per-Share | — | |
| VALUATION | Market Capitalization | $ 35.2 B |
| Enterprise Value | $ 40.5 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | — | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 7.394 | |
| Asset To Liability | 1.171 | |
| Debt To Capital | 0.681 | |
| Debt To Assets | 0.289 | |
| Debt To Assets QoQ | 1161.293 % | |
| Debt To Assets YoY | 712.581 % | |
| Debt To Assets IPRWA | high: 1.096 median: 0.394 mean: 0.39 WPP: 0.289 low: 0.001 |
|
| Debt To Equity | 2.135 | |
| Debt To Equity QoQ | 1170.165 % | |
| Debt To Equity YoY | 661.8 % | |
| Debt To Equity IPRWA | high: 6.354 WPP: 2.135 mean: 1.106 median: 0.906 low: -6.665 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 11.135 | |
| Price To Book QoQ | -27.099 % | |
| Price To Book YoY | -22.776 % | |
| Price To Book IPRWA | WPP: 11.135 high: 4.743 mean: 1.699 median: 1.295 low: -1.801 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | — | |
| Price To Sales QoQ | — | |
| Price To Sales YoY | — | |
| Price To Sales IPRWA | — | |
| FORWARD MULTIPLES | ||
| Forward P/E | 26.56 | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | — | |
| ASSET & SALES | ||
| Asset Turnover Ratio | — | |
| Asset Turnover Ratio QoQ | — | |
| Asset Turnover Ratio YoY | — | |
| Asset Turnover Ratio IPRWA | — | |
| Receivables Turnover | — | |
| Receivables Turnover Ratio QoQ | — | |
| Receivables Turnover Ratio YoY | — | |
| Receivables Turnover Ratio IPRWA | — | |
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | — | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 115.446 WPP: 0 mean: -76.715 low: -80.57 median: -80.57 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | — | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.0 B | |
| Net Invested Capital | $ 7.9 B | |
| Invested Capital | $ 7.9 B | |
| Net Tangible Assets | $ -4.91 B | |
| Net Working Capital | $ -1.91 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.104 | |
| Current Ratio | 0.861 | |
| Current Ratio QoQ | -2.18 % | |
| Current Ratio YoY | 0.709 % | |
| Current Ratio IPRWA | high: 2.91 median: 2.353 mean: 2.035 WPP: 0.861 low: 0.33 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.891 % | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | -0.033 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -8.291 % | |
| Revenue Growth | -100.0 % | |
| Revenue Growth QoQ | -0.0 % | |
| Revenue Growth YoY | -200.0 % | |
| Revenue Growth IPRWA | high: 41.48 % median: -1.631 % mean: -1.678 % low: -28.571 % WPP: -100.0 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | — | |
| EBIT Margin QoQ | — | |
| EBIT Margin YoY | — | |
| EBIT Margin IPRWA | — | |
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | — | |
| Free Cash Flow Yield | — | |
| Free Cash Flow Yield QoQ | — | |
| Free Cash Flow Yield YoY | — | |
| Free Cash Flow Yield IPRWA | — | |
| Free Cash Growth | — | |
| Free Cash Growth QoQ | — | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | — | |
| Free Cash To Net Income | — | |
| Cash Flow Margin | — | |
| Cash Flow To Earnings | — | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | — | |
| Return On Assets QoQ | — | |
| Return On Assets YoY | — | |
| Return On Assets IPRWA | — | |
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | — | |
| Return On Equity QoQ | — | |
| Return On Equity YoY | — | |
| Return On Equity IPRWA | — | |
| DuPont ROE | — | |
| Return On Invested Capital (ROIC) | — | |
| Return On Invested Capital QoQ | — | |
| Return On Invested Capital YoY | — | |
| Return On Invested Capital IPRWA | — | |