WSP Global
Market Cap
CA$10.0b
Last Updated
2020/02/23 01:59 UTC
Data Sources
Company Financials +
Executive Summary
WSP Global Inc. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Australia, Asia, New Zealand, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet.
Similar Companies
Share Price & News
How has WSP Global's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WSP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-2.1%
WSP
-2.3%
CA Construction
0.1%
CA Market
1 Year Return
34.5%
WSP
11.3%
CA Construction
4.7%
CA Market
Return vs Industry: WSP exceeded the Canadian Construction industry which returned 11.3% over the past year.
Return vs Market: WSP exceeded the Canadian Market which returned 4.7% over the past year.
Shareholder returns
| WSP | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.1% | -2.3% | 0.1% |
| 30 Day | 0.6% | 1.2% | 0.8% |
| 90 Day | 9.3% | 14.4% | 3.7% |
| 1 Year | 37.2%34.5% | 13.2%11.3% | 7.9%4.7% |
| 3 Year | 126.0%110.3% | 14.1%7.3% | 17.9%7.3% |
| 5 Year | 185.9%147.5% | 55.8%38.0% | 33.8%14.4% |
Price Volatility Vs. Market
How volatile is WSP Global's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Does WSP Global Inc.'s (TSE:WSP) CEO Pay Compare Well With Peers?4 months ago | Simply Wall St
Is WSP Global (TSE:WSP) Using Too Much Debt?4 months ago | Simply Wall St
Despite Its High P/E Ratio, Is WSP Global Inc. (TSE:WSP) Still Undervalued?Valuation
Is WSP Global undervalued compared to its fair value and its price relative to the market?
5.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WSP (CA$94.64) is trading below our estimate of fair value (CA$100.56)
Significantly Below Fair Value: WSP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WSP is poor value based on its PE Ratio (34.4x) compared to the Construction industry average (17.8x).
PE vs Market: WSP is poor value based on its PE Ratio (34.4x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: WSP is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: WSP is overvalued based on its PB Ratio (3x) compared to the CA Construction industry average (2.3x).
Next Steps
Future Growth
How is WSP Global forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
17.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WSP's forecast earnings growth (17.9% per year) is above the savings rate (1.4%).
Earnings vs Market: WSP's earnings (17.9% per year) are forecast to grow faster than the Canadian market (10.9% per year).
High Growth Earnings: WSP's earnings are forecast to grow, but not significantly.
Revenue vs Market: WSP's revenue (2.5% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: WSP's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WSP's Return on Equity is forecast to be low in 3 years time (12.9%).
Next Steps
Past Performance
How has WSP Global performed over the past 5 years?
19.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WSP has high quality earnings.
Growing Profit Margin: WSP's current net profit margins (3.3%) are higher than last year (3%).
Past Earnings Growth Analysis
Earnings Trend: WSP's earnings have grown by 19.5% per year over the past 5 years.
Accelerating Growth: WSP's earnings growth over the past year (23.1%) exceeds its 5-year average (19.5% per year).
Earnings vs Industry: WSP earnings growth over the past year (23.1%) exceeded the Construction industry 4.6%.
Return on Equity
High ROE: WSP's Return on Equity (8.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is WSP Global's financial position?
Financial Position Analysis
Short Term Liabilities: WSP's short term assets (CA$3.2B) exceed its short term liabilities (CA$2.6B).
Long Term Liabilities: WSP's short term assets (CA$3.2B) exceed its long term liabilities (CA$2.7B).
Debt to Equity History and Analysis
Debt Level: WSP's debt to equity ratio (46.3%) is considered high.
Reducing Debt: WSP's debt to equity ratio has increased from 26.8% to 46.3% over the past 5 years.
Debt Coverage: WSP's debt is well covered by operating cash flow (47.9%).
Interest Coverage: WSP's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: WSP has a low level of unsold assets or inventory.
Debt Coverage by Assets: WSP's debt is covered by short term assets (assets are 2.1x debt).
Next Steps
Dividend
What is WSP Global's current dividend yield, its reliability and sustainability?
1.58%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WSP's dividend (1.58%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: WSP's dividend (1.58%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).
Stability and Growth of Payments
Stable Dividend: WSP's dividend payments have been volatile in the past 10 years.
Growing Dividend: WSP's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.4%), WSP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WSP's dividends in 3 years are forecast to be well covered by earnings (34.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Alexandre L'Heureux (46yo)
3.3yrs
Tenure
CA$6,542,230
Compensation
Mr. Alexandre J. L'Heureux, FCA, CFA, FCPA, serves as the Chief Executive Officer and President of WSP Global Inc. since October 2016. Mr. L'Heureux has also a Partner at Celtic Pharma Management L.P. He w ...
CEO Compensation Analysis
Compensation vs Market: Alexandre's total compensation ($USD4.95M) is above average for companies of similar size in the Canadian market ($USD3.73M).
Compensation vs Earnings: Alexandre's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.3yrs | CA$6.54m | 0.025% CA$2.5m | |
| Chief Financial Officer | 3.3yrs | CA$2.68m | 0.0047% CA$470.0k | |
| Chief Operating Officer | 5.8yrs | CA$2.78m | 0.0010% CA$103.4k | |
| President and CEO of Australia & New Zealand | 0yrs | CA$1.67m | 0.010% CA$1.0m | |
| Chief Accounting and Treasury Officer | 0yrs | no data | 0.00052% CA$52.2k | |
| Chief Information Officer | 2.1yrs | no data | no data | |
| Senior Vice President of Investor Relations & Communications | 5.1yrs | no data | 0.00079% CA$79.3k | |
| Chief Ethics and Compliance Officer | 1.9yrs | no data | no data | |
| Chief Legal Officer & Corporate Secretary | 0.6yrs | no data | no data | |
| Global Head of Tax & VP | 5.1yrs | no data | no data |
3.3yrs
Average Tenure
Experienced Management: WSP's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.3yrs | CA$6.54m | 0.025% CA$2.5m | |
| Vice Chairman of the Board | 3.9yrs | CA$311.01k | 0.60% CA$59.9m | |
| Independent Director | 2.8yrs | CA$195.00k | 0.0029% CA$294.3k | |
| Independent Director | 0.8yrs | no data | 0.00094% CA$94.4k | |
| Chairman | 0yrs | CA$357.25k | 0.022% CA$2.2m | |
| Independent Director | 6.8yrs | CA$180.40k | 0.0038% CA$379.6k | |
| Independent Director | 1.1yrs | no data | no data | |
| Independent Director | 3.8yrs | CA$180.00k | 0.0046% CA$467.0k |
3.8yrs
Average Tenure
59yo
Average Age
Experienced Board: WSP's board of directors are considered experienced (3.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
WSP Global Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: WSP Global Inc.
- Ticker: WSP
- Exchange: TSX
- Founded: 1959
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: CA$10.043b
- Shares outstanding: 106.12m
- Website: https://www.wsp.com
Number of Employees
Location
- WSP Global Inc.
- 1600 Rene-Levesque Boulevard West
- 16th Floor
- Montreal
- Quebec
- H3H 1P9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WSP | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | May 2006 |
| 1W3 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | May 2006 |
| WSPO.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | May 2006 |
Biography
WSP Global Inc. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Australia, Asia, New Zealand, and internationally. The company advises, plans, designs, and manages projects for rail transit, aviation, highway, bridges, tunnels, water, maritime, and urban infrastructure for public and private clients, construction contractors, and partners. It also provides structural and mechanical, electrical, and plumbing engineering services; and fire engineering, lighting design, vertical transportation, acoustics, smart buildings, audiovisual systems, information technology, facade engineering, security consulting, and green building design services. In addition, the company works with and advises businesses and governments in various areas of environmental consultancy. Further, it provides long-term operational management support services comprising first feasibility studies; advisory services, which comprise technical, financial, and environmental issues, as well as engineering design and energy simulations during the construction phase. Additionally, the company plans, designs, and supports the development of pipelines and gas networks; and offers services to maintain the integrity of critical assets, and obtain permits and consent for clients in the mining, and oil and gas industries. It also provides a range of consulting and engineering services, such as strategic studies, concept design, and productivity analysis, as well as engineering, procurement, and construction management contract services to the food and beverages, pharmaceutical and biotechnology, automotive, and chemicals industries. The company was formerly known as GENIVAR Inc. and changed its name to WSP Global Inc. in January 2014. WSP Global Inc. was founded in 1959 and is headquartered in Montreal, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 01:59 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.