• Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
Saturday, January 28, 2023
TheGreatNews.com
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE
No Result
View All Result
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE
No Result
View All Result
TheGreatNews.com
No Result
View All Result

Is WPP a Good Stock to Add to Your Dividend Portfolio?

in ENTREPRENEUR
Reading Time: 3 mins read
A A
Is WPP a Good Stock to Add to Your Dividend Portfolio?
Share Share Share Share Share

Despite WPP plc’s (WPP) significant efforts to boost its operational performance, its shares are down 35.1% year-to-date. So, let’s evaluate if it is worth adding the stock to your dividend portfolio. Read on to learn more.


shutterstock.com – StockNews

London-based WPP plc (WPP) is a creative transformation company that delivers international communications, experience, commerce, and technology services. The company also advises customers who want to engage with various stakeholders, including consumers, governments, and the business and financial communities. WPP has a five-year average dividend yield of 4.71%. Its current dividend translates to a 4.3% yield. It has a payout ratio of 50.7%.

Related articles

These Labor Day Savings Are Too Good to Miss

Who Wins the Tug-of-War Going on in the Stock Market?

In April, WPP unveiled ‘Everymile,’ expanding its offering with a new fully managed service that would give businesses an outsourced direct-to-consumer (DTC) e-commerce solution. Everymile expands WPP’s current worldwide omnichannel commerce capabilities in strategy, customer experience, and technology development by adding demand creation, online trading and merchandising supply chain, and logistics. With the introduction of Everymile, WPP becomes the first firm in its category to provide an end-to-end e-commerce solution.

However, its stock is down 31.1% over the past year and 35.1% year-to-date to close yesterday’s trading session at $49.00. In addition, last month, analysts at Morgan Stanley downgraded the stock from an “equal weight” rating to an “underweight” rating.

Here’s what could shape WPP’s performance in the near term:

Mixed Profitability

WPP’s trailing-12-month gross profit margin of 17.2% is 66.1% lower than the industry average of 50.7%. Its trailing-12-month EBITDA margin and asset turnover ratio are 42.7% and 13.7% lower than their respective industry averages. However, its trailing-12-month ROC and ROA are 38.4% and 1.6% higher than their respective industry averages.

Discounted Valuation

In terms of forward EV/EBIT, the stock is currently trading at 7.02x, 50.9% lower than the industry average of 14.32x. Also, its forward non-GAAP P/E of 8.49x is 48.6% lower than the industry average of 16.49x. Moreover, WPP’s forward EV/Sales of 1.07x is 45.5% lower than the industry average of 1.96x.

POWR Ratings Reflect Uncertainty

WPP has an overall C rating, which equates to a Neutral in our proprietary POWR Ratings system. The POWR ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. WPP has a B grade for Value and a C for Quality. The company’s lower-than-industry valuation is in sync with the Value grade. In addition, its mixed profitability is consistent with the Quality grade.

Of the 21 stocks in the C-rated Advertising industry, WPP is ranked #7.

Beyond what I’ve stated above, you can view WPP ratings for Growth, Stability, Momentum, and Sentiment here.

Bottom Line

WPP’s continued efforts to boost its operational performance through various strategic partnerships should bode well for the stock in the long term. However, the stock is currently trading below its 50-day and 200-day moving averages of $59.81 and $68.92, respectively, indicating a downtrend. Moreover, analysts expect its EPS to decline at the rate of 3.7% per annum over the next five years. So, we think investors should wait before scooping up its shares.

How Does WPP Plc (WPP) Stack Up Against its Peers?

While WPP has an overall C rating, one might want to consider its industry peers, Cimpress PLC (CMPR), Criteo S.A. (CRTO), and Transcontinental Inc. (TCLAF), which has an overall B (Buy) rating.


WPP shares were trading at $49.47 per share on Friday afternoon, up $0.47 (+0.96%). Year-to-date, WPP has declined -33.05%, versus a -22.56% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey

Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate.

More…

The post Is WPP a Good Stock to Add to Your Dividend Portfolio? appeared first on StockNews.com

Credit: Source link

ShareTweetSendPinShare
Previous Post

Use Uncooked Pasta as an Impromptu Skewer

Next Post

Calendars by Readdle makes its way from the iPhone and iPad to the Mac

Related Posts

These Labor Day Savings Are Too Good to Miss

These Labor Day Savings Are Too Good to Miss

August 30, 2022

Disclosure: Our goal is to feature products and services that we think you'll find interesting and useful. If you purchase them, Entrepreneur may get a small...

Who Wins the Tug-of-War Going on in the Stock Market?

Who Wins the Tug-of-War Going on in the Stock Market?

August 30, 2022

Did you know that the tug of war was actually an Olympic sport from 1900 to 1920. Now, I'm generally a person who embraces the new...

Macy’s Value Lies Beneath its Stores

Macy’s Value Lies Beneath its Stores

August 30, 2022

Retail department store chain Macy's (NYSE: M) stock has had a rollercoaster ride in the past two years as shares trade down (-32%) for the year....

Does Micron’s Dividend Increase Mean It’s Time To Buy?

Does Micron’s Dividend Increase Mean It’s Time To Buy?

August 30, 2022

Memory-chip specialist Micron Technology (NASDAQ: MU) is up 4% since its June 30 earnings report. It rose as much at 18%, peaking at $65.42 in mid-August,...

5 Mistakes to Avoid When Launching a Business in the Service Industry

5 Mistakes to Avoid When Launching a Business in the Service Industry

August 30, 2022

Opinions expressed by Entrepreneur contributors are their own. Many individuals, not necessarily entrepreneurs, dream of having their very own cafe. There is a riveting component to...

Next Post
Calendars by Readdle makes its way from the iPhone and iPad to the Mac

Calendars by Readdle makes its way from the iPhone and iPad to the Mac

You Should Make Make AI-Generated Memes With Dall-E Mini

You Should Make Make AI-Generated Memes With Dall-E Mini

Recession-Proof Your Mindset with Neuroscience

Recession-Proof Your Mindset with Neuroscience

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Weekly Updates

insurance

“Life Insurance and its Impact on Overall Well-being”

January 24, 2023
TheGreatNews.com

This is an online news portal that aims to provide the latest updates about mindset, well being, positive news, wisdom, purpose, new technologies, entrepreneur, green energy, success, good life and stuff like that around the world. Feel free to get in touch with us!

© 2021 - TheGreatNews.com - All rights reserved!

  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA
No Result
View All Result
  • Home
  • MINDSET
  • WELL BEING
  • POSITIVE NEWS
  • WISDOM
  • PURPOSE
  • NEW TECHNOLOGIES
  • More Topics
    • ENTREPRENEUR
    • GREEN ENERGIES
    • SUCCESS
    • GOOD LIFE

© 2021 - TheGreatNews.com - All rights reserved!