Investment tools for private investors

Business Growth Analyzer

Profitable businesses that repeatedly reported good growth rates year after year are much loved and valuable. This is because the business’s growth rate is the most important factor in determining the company value. This tool will crunch all the numbers for you so you can see the various growth rates for the company.

+Features

  • Generates relevant financial metrics for analyzing growth in market value, sales, profits, cash flows, dividends and shareholders’ funds.
  • Presents facts and figures in graphical formats for easy spotting of abnormal outcomes and trends.
  • Analyzes the main sources of funds used in supporting the business growth.
  • The generated financial metrics can be use for stock price sanity check and stock valuation purposes.

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Business Growth Analysis for "WPP WPP PLC" from 2006 to 2016

Market Capitalization

  • Market Capitalization Growth
  • Market Cap Growth:

    171.8%
    Total
    11.4%
    Last 3-year average
    10.5%
    CAGR
    14.9%
    Trailing 12 months
    No. of Shares Growth:

    3.3%
    Total
    -1.5%
    Last 3-year average
    0.3%
    CAGR
    -1.1%
    Trailing 12 months

Sales

  • Sales Growth
  • Sales Growth:
     
      143.6%
    Total
      11.6%
    Last 3-year average
      9.3%
    CAGR
      17.6%
    Trailing 12 months
    Profit Margin
    Average:

     
      12.5%
    Overall average
      13.7%
    Last 3-year average
      14.2%
    Trailing 12 months
     

Profit, Cash Flow & Dividend


Profit, Cash Flow & Dividend Growth
  • Operating Profit
    Growth:


    176.2%
    Total
    17.2%
    Last 3-year average
    10.7%
    CAGR
    27.2%
    Trailing 12 months
     
     
  • Operating Cashflow
    Growth:


    168.2%
    Total
    12.5%
    Last 3-year average
    10.4%
    CAGR
    30.4%
    Trailing 12 months
     
     
  • Net Profit Growth:

    221.2%
    Total
    15.4%
    Last 3-year average
    12.4%
    CAGR
    20.7%
    Trailing 12 months
    Unavailable
    Next 12 months
  • Free Cashflow
    Growth:


    212.2%
    Total
    14.6%
    Last 3-year average
    12.1%
    CAGR
    33.7%
    Trailing 12 months
     
     
  • Dividend Growth:

    418.9%
    Total
    15.4%
    Last 3-year average
    17.9%
    CAGR
    13%
    Trailing 12 months
     
     
     

Book Value & Cash

  • Book Value Growth
  • Book Value Growth:

    143.7%
    Total
    11.5%
    Last 3-year average
    9.3%
    CAGR
    22.1%
    Trailing 12 months
    Cash Growth:

    46.5%
    Total
    1.6%
    Last 3-year average
    3.9%
    CAGR
    2.3%
    Trailing 12 months

Sources Of Funds


Sources Of Funds Analysis
* Funds are shown in £ millions and as percentage of overall funds.

Year Over Year Growth

  2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenue 4.7% 20.9% 16.1% 7.4% 7.4% 3.5% 6.2% 4.6% 6.1% 17.6%
Operating profit 8.6% 8.7% -13.2% 28% 22.7% 3.7% 13.1% 7.1% 7.3% 27.2%
Net profit 6.9% -5.8% -0.2% 33.8% 43.3% -2% 13.8% 14.9% 7.7% 20.7%
Net operating cash flow 34.8% 3.5% -11.2% 66.2% -51.1% 36.5% 51.3% 24% -20.2% 30.4%
Free cash flow 51.1% -2.6% -19.4% 101.9% -64% 40.3% 88.4% 36.8% -25.2% 33.7%
Dividend 16.8% 16.5% 17.4% 5.3% 9% 40.8% 29.3% 15.9% 18.7% 13%
Shareholders' equity 3.8% 45% 2.3% 9.4% 3.4% 2.2% 11.4% -1.2% 1.8% 22.1%
Market capitalization -9.9% -34.4% 51.2% 30.3% -14.6% 31.9% 65.5% -4.6% 14.2% 14.9%

Summary


  Total Growth 3-Year WA CAGR TTM Steady Trend Rating
Revenue 143.6% 11.6% 9.3% 17.6% 100% 100% Sales Consistency Sales Trend
Operating Profit 176.2% 17.2% 10.7% 27.2% 100% 90% Operating Profit Consistency Operating Profit Trend
Net Profit 221.2% 15.4% 12.4% 20.7% 100% 70% Net Profit Consistency Net Profit Trend
Operating Cash Flow 168.2% 12.5% 10.4% 30.4% 100% 70% Operating Cash Flow Consistency Operating Cash Flow Trend
Free Cash Flow 212.2% 14.6% 12.1% 33.7% 100% 60% Free Cash Flow Consistency Free Cash Flow Trend
Dividend 418.9% 15.4% 17.9% 13% 100% 100% Dividend Consistency Dividend Trend
Book Value 143.7% 11.5% 9.3% 22.1% 100% 90% Book Value Consistency Book Value Trend
Market Capitalization 171.8% 11.4% 10.5% 14.9% 100% 60% Market Capitalization Consistency Market Capitalization Trend
No. of Shares 3.3% -1.5% 0.3% -1.1% 100% 40% No Of Shares Consistency No Of Shares Trend
* WA - Weighted Average   TTM - Trailing 12 Months    - Positive Value Track Record    - Growth Track Record

Overall Growth Rating

+Tips & Advice

  • Stock market value is closely linked to earnings. Sustainable and rising earnings will give rise to increase share price.
  • Sales growth from unit volume or price increases is more sustainable than from acquisitions. Big and too many acquisitions can lead to culture clash and goodwill write-offs.
  • Profit that is growing due to increase sales is much more reliable than cost cutting as this is not sustainable in the long run.
  • Accounting profit is not cash flow. When a company makes a profit it increases the company’s net worth i.e. book value. Increasing profits will help to make the company more valuable.
  • Business needs to be able to convert sales into cash flows to provide funds for capital investments, pays down debts and distributes dividends to shareholders.
  • A company that can generate positive free cash flow every year is valuable and generally safe to invest.
  • Businesses that grow using mainly retained earnings rather than loans from lenders are generally well-run and less risky when times are bad.
  • Shareholders’ funds that are growing consistently as the result of invested retained earnings are much better than growth from issuing more shares.
  • The number of common shares should be almost constant or slowly decreasing due to the repurchasing of outstanding shares. This helps to increase earnings per share which in turn drives up the company’s share price.