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Market Cap

CA$14.6b

Last Updated

2021/04/11 23:05 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, Europe, the Middle East, India, Africa, Australia, Asia, New Zealand, and internationally. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WSP's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.7%

WSP

1.8%

CA Construction

1.0%

CA Market


1 Year Return

47.8%

WSP

41.3%

CA Construction

39.2%

CA Market

Return vs Industry: WSP exceeded the Canadian Construction industry which returned 41.3% over the past year.

Return vs Market: WSP exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

WSPIndustryMarket
7 Day2.7%1.8%1.0%
30 Day7.4%5.1%1.3%
90 Day1.5%7.0%8.1%
1 Year50.1%47.8%43.3%41.3%44.0%39.2%
3 Year111.8%100.1%22.9%17.1%32.2%19.6%
5 Year255.6%215.6%63.2%47.9%59.4%35.3%

Long-Term 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

Valuation

Is WSP Global undervalued compared to its fair value and its price relative to the market?

49.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSP (CA$124.54) is trading above our estimate of fair value (CA$72.13)

Significantly Below Fair Value: WSP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WSP is poor value based on its PE Ratio (49.6x) compared to the CA Construction industry average (43.2x).

PE vs Market: WSP is poor value based on its PE Ratio (49.6x) compared to the Canadian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: WSP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: WSP is overvalued based on its PB Ratio (3.5x) compared to the CA Construction industry average (2.9x).


Future Growth

How is WSP Global forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSP's forecast earnings growth (24.9% per year) is above the savings rate (1.5%).

Earnings vs Market: WSP's earnings (24.9% per year) are forecast to grow faster than the Canadian market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WSP's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: WSP's revenue is forecast to decline over the next 3 years (-0.6% 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%).


Past Performance

How has WSP Global performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSP has high quality earnings.

Growing Profit Margin: WSP's current net profit margins (3.1%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: WSP's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: WSP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WSP had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the Construction industry average (7.5%).


Return on Equity

High ROE: WSP's Return on Equity (6.8%) is considered low.


Financial Health

How is WSP Global's financial position?


Financial Position Analysis

Short Term Liabilities: WSP's short term assets (CA$3.3B) exceed its short term liabilities (CA$3.2B).

Long Term Liabilities: WSP's short term assets (CA$3.3B) exceed its long term liabilities (CA$1.6B).


Debt to Equity History and Analysis

Debt Level: WSP's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: WSP's debt to equity ratio has reduced from 34.8% to 14.1% over the past 5 years.

Debt Coverage: WSP's debt is well covered by operating cash flow (195.9%).

Interest Coverage: WSP's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

What is WSP Global current dividend yield, its reliability and sustainability?

1.20%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSP's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.49%).

High Dividend: WSP's dividend (1.2%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.8%), 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 (32.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Alexandre L'Heureux (47 yo)

4.5yrs

Tenure

CA$7,033,276

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 ($USD5.60M) is about average for companies of similar size in the Canadian market ($USD7.04M).

Compensation vs Earnings: Alexandre's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WSP's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: WSP's board of directors are considered experienced (4.9 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 been diluted in the past year, with total shares outstanding growing by 10.3%.


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: 1885
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$14.583b
  • Shares outstanding: 117.09m
  • Website: https://www.wsp.com

Number of Employees


Location

  • WSP Global Inc.
  • 1600 Rene-Levesque Boulevard West
  • 11th Floor
  • Montreal
  • Quebec
  • H3H 1P9
  • Canada

Listings


Biography

WSP Global Inc. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Europe, the Middle East, India, Africa, Australia, Asia, New Zealand, and inter...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 23:05
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.