WPP Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - WPP PLC - Alpha Spread
W

WPP PLC
NYSE:WPP

Watchlist Manager
WPP PLC
NYSE:WPP
Watchlist
Price: 49.154 USD 0.97%
Market Cap: 10.6B USD
Have any thoughts about
WPP PLC?
Write Note

Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
WPP PLC

Revenue
14.9B GBP
Cost of Revenue
-12.4B GBP
Gross Profit
2.5B GBP
Operating Expenses
-1.8B GBP
Operating Income
681.9m GBP
Other Expenses
-478.5m GBP
Net Income
203.4m GBP

Margins Comparison
WPP PLC Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
UK
WPP PLC
NYSE:WPP
10.6B USD
17%
5%
1%
FR
Publicis Groupe SA
PAR:PUB
24.2B EUR
0%
13%
10%
US
Omnicom Group Inc
NYSE:OMC
19.9B USD
27%
15%
10%
US
United Communications Partners Inc
OTC:UCPA
19.4B USD
8%
1%
1%
UK
Informa PLC
LSE:INF
11.3B GBP
0%
16%
9%
US
Interpublic Group of Companies Inc
NYSE:IPG
11.8B USD
17%
14%
9%
CN
Focus Media Information Technology Co Ltd
SZSE:002027
76.3B CNY
64%
45%
41%
JP
Dentsu Group Inc
TSE:4324
1.1T JPY
86%
10%
-1%
FR
JCDecaux SA
OTC:JCDXY
4B USD
60%
11%
6%
FR
JCDecaux SE
PAR:DEC
3.9B EUR
55%
13%
8%
JP
CyberAgent Inc
TSE:4751
518.4B JPY
27%
5%
2%
Country UK
Market Cap 10.6B USD
Gross Margin
17%
Operating Margin
5%
Net Margin
1%
Country FR
Market Cap 24.2B EUR
Gross Margin
0%
Operating Margin
13%
Net Margin
10%
Country US
Market Cap 19.9B USD
Gross Margin
27%
Operating Margin
15%
Net Margin
10%
Country US
Market Cap 19.4B USD
Gross Margin
8%
Operating Margin
1%
Net Margin
1%
Country UK
Market Cap 11.3B GBP
Gross Margin
0%
Operating Margin
16%
Net Margin
9%
Country US
Market Cap 11.8B USD
Gross Margin
17%
Operating Margin
14%
Net Margin
9%
Country CN
Market Cap 76.3B CNY
Gross Margin
64%
Operating Margin
45%
Net Margin
41%
Country JP
Market Cap 1.1T JPY
Gross Margin
86%
Operating Margin
10%
Net Margin
-1%
Country FR
Market Cap 4B USD
Gross Margin
60%
Operating Margin
11%
Net Margin
6%
Country FR
Market Cap 3.9B EUR
Gross Margin
55%
Operating Margin
13%
Net Margin
8%
Country JP
Market Cap 518.4B JPY
Gross Margin
27%
Operating Margin
5%
Net Margin
2%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
WPP PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
WPP PLC
NYSE:WPP
10.6B USD
6%
1%
6%
3%
FR
Publicis Groupe SA
PAR:PUB
24.2B EUR
15%
4%
14%
9%
US
Omnicom Group Inc
NYSE:OMC
19.9B USD
43%
6%
19%
13%
US
United Communications Partners Inc
OTC:UCPA
19.4B USD
126%
3%
201%
21%
UK
Informa PLC
LSE:INF
11.3B GBP
5%
3%
5%
4%
US
Interpublic Group of Companies Inc
NYSE:IPG
11.8B USD
27%
6%
17%
13%
CN
Focus Media Information Technology Co Ltd
SZSE:002027
76.3B CNY
33%
22%
33%
30%
JP
Dentsu Group Inc
TSE:4324
1.1T JPY
-2%
-1%
8%
-3%
FR
JCDecaux SA
OTC:JCDXY
4B USD
11%
2%
5%
5%
FR
JCDecaux SE
PAR:DEC
3.9B EUR
14%
3%
6%
6%
JP
CyberAgent Inc
TSE:4751
518.4B JPY
12%
4%
11%
13%
Country UK
Market Cap 10.6B USD
ROE
6%
ROA
1%
ROCE
6%
ROIC
3%
Country FR
Market Cap 24.2B EUR
ROE
15%
ROA
4%
ROCE
14%
ROIC
9%
Country US
Market Cap 19.9B USD
ROE
43%
ROA
6%
ROCE
19%
ROIC
13%
Country US
Market Cap 19.4B USD
ROE
126%
ROA
3%
ROCE
201%
ROIC
21%
Country UK
Market Cap 11.3B GBP
ROE
5%
ROA
3%
ROCE
5%
ROIC
4%
Country US
Market Cap 11.8B USD
ROE
27%
ROA
6%
ROCE
17%
ROIC
13%
Country CN
Market Cap 76.3B CNY
ROE
33%
ROA
22%
ROCE
33%
ROIC
30%
Country JP
Market Cap 1.1T JPY
ROE
-2%
ROA
-1%
ROCE
8%
ROIC
-3%
Country FR
Market Cap 4B USD
ROE
11%
ROA
2%
ROCE
5%
ROIC
5%
Country FR
Market Cap 3.9B EUR
ROE
14%
ROA
3%
ROCE
6%
ROIC
6%
Country JP
Market Cap 518.4B JPY
ROE
12%
ROA
4%
ROCE
11%
ROIC
13%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

Discover More
Back to Top