WPP Plc (NYSE:WPP) Extends Gains; Near-Term Pullback Likely

Recent momentum pushed WPP above its short- and medium-term averages, but multiple momentum indicators point toward an imminent consolidation. Valuation metrics remain stretched relative to peers, supporting a cautious short-term bias.

Recent News

On June 26, WPP agencies claimed top creative network honours at Cannes Lions 2026, highlighting recent creative wins for Ogilvy and VML. On June 16 the company filed a Director/PDMR shareholding notice. A Total Voting Rights notification appeared in early July. WPP announced its 2026 interim results publication on August 6, 2026.

Technical Analysis

ADX at 36.1 signals a strong directional market — price action currently trends, but strength may not accelerate without renewed bullish inputs; this strength underpins the recent move above intermediate averages.

DI+ stands at 46.29 but shows a decreasing pattern (peak-and-reversal), which indicates that bullish directional pressure has begun to wane and reduces the probability of a sustained breakout beyond the current range.

DI- measures 17.68 with a peak-and-reversal pattern (decreasing), which reduces negative directional pressure and offers some support to the prevailing upside, though it does not yet reverse the loss of bullish momentum.

MACD sits at 2.00, above its signal line at 1.83, producing a bullish crossover signal; however, the MACD trend shows a peak-and-reversal, which signals that momentum has started to decline and cautions against extrapolating the short-term advance.

MRO at 35.06 (positive) indicates the current price sits above the WMDST target and implies a material potential for price to move back toward valuation levels; the rising MRO trend increases the likelihood of mean reversion pressure during the coming weeks.

RSI at 62.58 and increasing reflects recently elevated buying pressure without yet entering extreme overbought levels; combined with the weakening MACD momentum and positive MRO, RSI momentum supports a scenario where upside slows and consolidation becomes more likely.

Price sits above the 12-day EMA ($25.51), 20-day average ($25.34) and the 50- and 200-day averages ($20.18 and $18.90), confirming short-to-long-term technical strength; ichimoku Tenkan (24.00) above Kijun (22.27) and price above the cloud add bullish structure, while the SuperTrend lower band at $24.53 offers a proximate technical support for any pullback.

 


Fundamental Analysis

P/B ratio equals 10.39, substantially above the industry peer mean of 1.799 and the industry peer median of 1.677, placing the company well above the industry peer range high of 5.379; this elevated P/B contributes heavily to WMDST’s over-valued determination. P/B moved QoQ by -6.70% and YoY by -25.80%.

Forward EPS stands at $0.8746 with a forward P/E of 24.92, below the industry peer mean forward P/E of 43.61, indicating that forward earnings expectations embed a lower multiple than peers despite the high P/B. Forward P/E changed QoQ by -6.16%.

Liquidity measures show a current ratio of 0.888 and a cash ratio of 0.1816; the current ratio sits well below the industry peer mean current ratio of 1.956, signaling tighter short-term liquidity relative to peers. Net working capital registers negative $1,665,000,000, reinforcing near-term funding pressure compared with typical peer levels.

Balance-sheet leverage shows debt-to-equity at 2.6898, well above the industry peer mean of 1.0485, while debt-to-assets at 0.2838 sits below the industry peer mean of 0.3886; elevated debt-to-equity and a sizable intangible asset base (intangible assets $7,680,000,000; net tangible assets negative $5,140,000,000) highlight capital structure dependence on liabilities and intangibles rather than tangible equity.

Operating cash flow equals $277,000,000 with an operating cash flow ratio of 0.01867, and net debt stands at $2,242,000,000. These cash-flow and net-debt positions, together with a modest cash balance of $2,694,000,000, limit margin for aggressive balance-sheet maneuvers in the short term.

Revenue growth year-over-year reads 90.11% while revenue growth overall shows -100.00 (data label), and revenue growth QoQ shows effectively flat; where YoY growth appears elevated, other cash- and leverage-related metrics temper confidence in valuation expansion. WMDST values the stock as over-valued based on the combination of an exceptionally high P/B relative to peers, negative tangible equity, and elevated leverage despite lower forward P/E.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2025-11-06
NEXT REPORT DATE: 2026-02-05
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow 277.0 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 0.87
 
BALANCE SHEET ASSETS
 Total Assets 24.1 B
 Intangible Assets 7.7 B
 Net Tangible Assets -5.14 B
 Total Current Assets 13.2 B
 Cash and Short-Term Investments 2.7 B
 Cash 2.7 B
 Net Receivables 6.1 B
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable 10.1 B
 Short-Term Debt 822.0 M
 Total Current Liabilities 14.8 B
 Net Debt 2.2 B
 Total Debt 6.8 B
 Total Liabilities 21.3 B
EQUITY
 Total Equity 2.5 B
 Retained Earnings 2.1 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 2.36
 Shares Outstanding 1.079 B
 Revenue Per-Share
VALUATION
 Market Capitalization 26.4 B
 Enterprise Value 30.5 B
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity 9.478
 Asset To Liability 1.13
 Debt To Capital 0.729
 Debt To Assets 0.284
Debt To Assets QoQ -1.708 %
Debt To Assets YoY 509.886 %
Debt To Assets IPRWA high: 1.69
median: 0.4
mean: 0.389
WPP: 0.284
low: 0.0
 Debt To Equity 2.69
Debt To Equity QoQ 26.005 %
Debt To Equity YoY 683.182 %
Debt To Equity IPRWA high: 6.05
WPP: 2.69
mean: 1.049
median: 0.983
low: -9.844
PRICE-BASED VALUATION
 Price To Book (P/B) 10.389
Price To Book QoQ -6.699 %
Price To Book YoY -25.796 %
Price To Book IPRWA WPP: 10.389
high: 5.379
mean: 1.799
median: 1.678
low: -0.597
 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 24.924
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: 144.763
mean: 36.169
median: 28.512
WPP: 0
low: -95.091
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 6.7 B
 Net Invested Capital 7.5 B
 Invested Capital 7.5 B
 Net Tangible Assets -5.14 B
 Net Working Capital -1.67 B
LIQUIDITY
 Cash Ratio 0.182
 Current Ratio 0.888
Current Ratio QoQ 3.078 %
Current Ratio YoY -0.517 %
Current Ratio IPRWA high: 2.784
median: 2.143
mean: 1.956
WPP: 0.888
low: 0.387
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 1.824 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio 0.019
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate 2.911 %
 Revenue Growth -100.0 %
Revenue Growth QoQ -0.0 %
Revenue Growth YoY 90.11 %
Revenue Growth IPRWA high: 71.226 %
mean: 2.109 %
median: -0.54 %
low: -24.881 %
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

Six-Week Outlook

Near term, expect consolidation that favors mean reversion: short-term moving averages and ichimoku structure provide support, but technical momentum indicators (MACD peak-and-reversal, rising MRO) and an elevated P/B ratio point toward a corrective phase rather than a sustained breakout. Liquidity metrics and elevated debt-to-equity increase sensitivity to any downside; therefore, the most probable path over six weeks consists of oscillation between support near the SuperTrend lower band and resistance below the 52-week high as momentum recalibrates.

About WPP plc

WPP plc (NYSE:WPP) develops a comprehensive suite of services in communications, experience, commerce, and technology across various global regions, including North America, the UK, Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three primary segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. WPP delivers marketing strategy, creative ideation, and production services, alongside commerce and influencer marketing solutions. It manages social media and implements technology to enhance client engagement. In media, WPP provides strategy, planning, buying, and activation services, complemented by commerce media, data analytics, and consulting. The company also handles media management, public affairs, reputation, risk and crisis management, and strategic advisory services. Additionally, WPP offers brand consulting, identity development, product and service design, and corporate publication services. Founded in 1985 and headquartered in London, WPP plc leverages its extensive expertise to support clients in navigating complex market dynamics and achieving their business objectives.



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