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WPP (OTCPK:WPPGF) Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

WPP has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for WPP's Piotroski F-Score or its related term are showing as below:

WPPGF' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 5   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of WPP was 8. The lowest was 1. And the median was 5.


WPP Piotroski F-Score Historical Data

The historical data trend for WPP's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

WPP Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 7.00 4.00 7.00

WPP Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 4.00 - 7.00 -

Competitive Comparison

For the Advertising Agencies subindustry, WPP's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

WPP Piotroski F-Score Distribution

For the Media - Diversified industry and Communication Services sector, WPP's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where WPP's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec21) TTM:Last Year (Dec20) TTM:
Net Income was $848 Mil.
Cash Flow from Operations was $2,703 Mil.
Revenue was $17,023 Mil.
Gross Profit was $2,930 Mil.
Average Total Assets from the begining of this year (Dec20)
to the end of this year (Dec21) was (48611.693548387 + 37062.234042553) / 2 = $42836.96379547 Mil.
Total Assets at the begining of this year (Dec20) was $48,612 Mil.
Long-Term Debt & Capital Lease Obligation was $7,951 Mil.
Total Current Assets was $20,393 Mil.
Total Current Liabilities was $21,922 Mil.
Net Income was $-3,985 Mil.

Revenue was $16,133 Mil.
Gross Profit was $2,708 Mil.
Average Total Assets from the begining of last year (Dec19)
to the end of last year (Dec20) was (51877.588466579 + 48611.693548387) / 2 = $50244.641007483 Mil.
Total Assets at the begining of last year (Dec19) was $51,878 Mil.
Long-Term Debt & Capital Lease Obligation was $9,151 Mil.
Total Current Assets was $32,233 Mil.
Total Current Liabilities was $31,219 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

WPP's current Net Income (TTM) was 848. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

WPP's current Cash Flow from Operations (TTM) was 2,703. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec20)
=848.00531914894/48611.693548387
=0.01744447

ROA (Last Year)=Net Income/Total Assets (Dec19)
=-3985.3494623656/51877.588466579
=-0.07682218

WPP's return on assets of this year was 0.01744447. WPP's return on assets of last year was -0.07682218. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

WPP's current Net Income (TTM) was 848. WPP's current Cash Flow from Operations (TTM) was 2,703. ==> 2,703 > 848 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec20 to Dec21
=7950.664893617/42836.96379547
=0.1856029

Gearing (Last Year: Dec20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec19 to Dec20
=9150.5376344086/50244.641007483
=0.18211967

WPP's gearing of this year was 0.1856029. WPP's gearing of last year was 0.18211967. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec21)=Total Current Assets/Total Current Liabilities
=20393.085106383/21922.074468085
=0.93025344

Current Ratio (Last Year: Dec20)=Total Current Assets/Total Current Liabilities
=32233.467741935/31219.220430108
=1.03248791

WPP's current ratio of this year was 0.93025344. WPP's current ratio of last year was 1.03248791. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

WPP's number of shares in issue this year was 1215.3. WPP's number of shares in issue last year was 1236. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2930.3191489362/17022.739361702
=0.17214146

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2708.1989247312/16132.795698925
=0.16786916

WPP's gross margin of this year was 0.17214146. WPP's gross margin of last year was 0.16786916. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec20)
=17022.739361702/48611.693548387
=0.35017787

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec19)
=16132.795698925/51877.588466579
=0.31097813

WPP's asset turnover of this year was 0.35017787. WPP's asset turnover of last year was 0.31097813. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

WPP has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

WPP  (OTCPK:WPPGF) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


WPP Piotroski F-Score Related Terms

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WPP (OTCPK:WPPGF) Business Description

WPP logo
Traded in Other Exchanges
Address
18 Upper Ground, Sea Containers, London, GBR, SE1 9GL
Headquartered in the U.K., WPP is the world's largest ad holding company, based on annual revenues. WPP's services, which include traditional and digital advertising, public relations, and consulting, are provided worldwide, with over 70% of its revenue coming from more developed regions such as the North America, U.K., and Western Europe.

WPP (OTCPK:WPPGF) Headlines

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