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 2023

Market Capitalization

Market Cap Growth:

-5.4%
Total
-9.3%
Last 3-year average
-0.3%
CAGR
-7.8%
Trailing 12 months

No. of Shares Growth:

-13.3%
Total
-3.2%
Last 3-year average
-0.8%
CAGR
0.4%
Trailing 12 months

Sales

Sales Growth:

151.3%
Total
6.8%
Last 3-year average
5.6%
CAGR
2.9%
Trailing 12 months

Profit Margin
Average:

7.5%
Overall average
6.3%
Last 3-year average
3.8%
Trailing 12 months

Profit, Cash Flow & Dividend

Operating Profit
Growth:

-23.8%
Total
-50%
Last 3-year average
-1.6%
CAGR
-53.8%
Trailing 12 months
Operating Cashflow
Growth:

87.2%
Total
16.3%
Last 3-year average
3.8%
CAGR
76.6%
Trailing 12 months
Net Profit Growth:

-74.8%
Total
-59.8%
Last 3-year average
-7.8%
CAGR
-83.9%
Trailing 12 months
Unavailable
Next 12 months
Free Cashflow
Growth:

114.1%
Total
32.2%
Last 3-year average
4.6%
CAGR
113.6%
Trailing 12 months
Dividend Growth:

255.8%
Total
39.6%
Last 3-year average
7.8%
CAGR
15.9%
Trailing 12 months

Book Value & Cash

Book Value Growth:

-11.8%
Total
-7.5%
Last 3-year average
-0.7%
CAGR
-8.3%
Trailing 12 months

Cash Growth:

33.3%
Total
-29.1%
Last 3-year average
1.7%
CAGR
-11%
Trailing 12 months

Sources Of Funds

* 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	2017	2018	2019	2020	2021	2022	2023
Revenue	4.7%	20.9%	16.1%	7.4%	7.4%	3.5%	6.2%	4.6%	6.1%	17.6%	9.8%	-17.4%	1.4%	-9.3%	6.6%	12.7%	2.9%
Operating profit	8.6%	8.7%	-13.2%	28%	22.7%	3.7%	13.1%	7.1%	8.8%	25.5%	-6.8%	-36.9%	3.6%	-294.2%	-148.1%	4.9%	-53.8%
Net profit	6.9%	-5.8%	-0.2%	33.8%	43.3%	-2%	13.8%	14.9%	7.7%	20.7%	29.8%	-54.6%	2.3%	-451.5%	-121.5%	7%	-83.9%
Net operating cash flow	34.8%	3.5%	-11.2%	66.2%	-51.1%	36.5%	51.3%	24%	-20.2%	30.4%	-20.6%	20.3%	9.3%	11%	-1.1%	-65.5%	76.6%
Free cash flow	51.1%	-2.6%	-19.4%	101.9%	-64%	40.3%	88.4%	36.8%	-25.2%	33.7%	-27.3%	21.9%	10.5%	22.3%	-2.4%	-72.5%	113.6%
Dividend	16.8%	16.5%	17.4%	5.3%	9%	40.8%	29.3%	15.9%	18.7%	13%	21.9%	-0.7%	0.5%	-83.8%	158.2%	15.9%	15.9%
Shareholders' equity	3.8%	45%	2.3%	9.4%	3.4%	2.2%	11.4%	-1.2%	1.8%	22.1%	1.7%	-1.3%	-15.3%	-40.3%	-23.6%	1.8%	-8.3%
Market capitalization	-9.9%	-34.4%	51.2%	30.3%	-14.6%	31.9%	65.5%	-4.6%	14.2%	14.9%	-26.8%	-37.2%	25.4%	-26.9%	31.9%	-32%	-7.8%

Summary

	Total Growth	3-Year WA	CAGR	TTM
Revenue	151.3%	6.8%	5.6%	2.9%	100%	88%
Operating Profit	-23.8%	-50%	-1.6%	-53.8%	94%	71%
Net Profit	-74.8%	-59.8%	-7.8%	-83.9%	94%	65%
Operating Cash Flow	87.2%	16.3%	3.8%	76.6%	100%	65%
Free Cash Flow	114.1%	32.2%	4.6%	113.6%	100%	59%
Dividend	255.8%	39.6%	7.8%	15.9%	100%	88%
Book Value	-11.8%	-7.5%	-0.7%	-8.3%	100%	65%
Market Capitalization	-5.4%	-9.3%	-0.3%	-7.8%	100%	47%
No. of Shares	-13.3%	-3.2%	-0.8%	0.4%	100%	29%

* 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.