WPPWPP plc
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.4×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WPP?
WPP plc earns 5.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.1 points below what the capital costs: growth destroys value
- Operating margin
- 2.8%
Operating margin · Advertising Agencies median 5.9% · fiscal year to FY2025
- Cash conversion
- 2.40×
Cash conversion · 1.74× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −19% |
| FY2021 | 9.6% |
| FY2022 | 9.4% |
| FY2023 | 3.6% |
| FY2024 | 9.0% |
| FY2025 | 2.8% |
Details›
- Gross marginfiscal year to FY2025
- 16%
- Operating marginfiscal year to FY2025
- 2.8%
- Net marginfiscal year to FY2025
- −1.6%
- Free cash flow margin
- 4.7%
- Revenue, trailing twelve months
- $13.6B
- Free cash flow, trailing twelve months
- $633M
- Net income, trailing twelve months
- −$215M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from WPP and who it buys from, as the companies report it.
- Ten largest clients21%
Combined share of revenue · FY2025 20-F
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; WPP’s own figures are from its FY2025 20-F. Smaller customers and suppliers go unreported.
Advertising Agencies
Ranks #1 of 10 by RyuScore