TSX:WSP

Stock Analysis Report

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.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.5%

WSP

2.3%

CA Construction

-0.5%

CA Market


1 Year Return

19.1%

WSP

-18.5%

CA Construction

1.1%

CA Market

Return vs Industry: WSP exceeded the Canadian Construction industry which returned -18.5% over the past year.

Return vs Market: WSP exceeded the Canadian Market which returned 1.1% over the past year.


Share holder returns

WSPIndustryMarket
7 Day1.5%2.3%-0.5%
30 Day2.9%-0.8%-1.9%
90 Day4.7%-8.5%-1.6%
1 Year21.8%19.1%-16.9%-18.5%4.6%1.1%
3 Year104.5%89.6%-7.1%-13.1%15.8%5.5%
5 Year172.3%134.2%10.0%-2.8%26.9%8.6%

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 based on future cash flows and its price relative to the stock market?

28.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: WSP (CA$77.6) is trading above our estimate of fair value (CA$49.99)

Significantly Undervalued: WSP is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: WSP is poor value based on its PE Ratio (28.7x) compared to the Construction industry average (20.8x).

PE vs Market: WSP is poor value based on its PE Ratio (28.7x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: WSP is overvalued based on its PB Ratio (2.5x) compared to the CA Construction industry average (2.1x).


Next Steps

Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: WSP's forecast earnings growth (14.3% per year) is above the savings rate (1.9%).

Earnings vs Market: WSP's earnings (14.3% per year) are forecast to grow faster than the Canadian market (13.3% per year).

High Growth Earnings: WSP's earnings are forecast to grow, but not significantly.

Revenue vs Market: WSP's revenue (1.8% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: WSP's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: WSP's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has WSP Global performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WSP's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: WSP's earnings growth over the past year (28.8%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: WSP earnings growth over the past year (28.8%) exceeded the Construction industry 5.4%.


Return on Equity

High ROE: WSP's Return on Equity (8.7%) is considered low.


Return on Assets

ROA vs Industry: WSP has a higher Return on Assets than the Construction industry average last year.


Return on Capital Employed

ROCE Improving: WSP has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is WSP Global's financial position?


Financial Position Analysis

Short Term Liabilities: WSP's short term assets (CA$3.3B) exceeds its short term liabilities (CA$2.6B)

Long Term Liabilities: WSP's short term assets (CA$3.3B) exceeds its long term liabilities (CA$2.8B)


Debt to Equity History and Analysis

Debt Level: WSP's debt to equity ratio (51%) is considered high

Reducing Debt: WSP's debt to equity ratio has increased from 25.9% to 51% over the past 5 years.

Debt Coverage: WSP's debt is well covered by operating cash flow (43.8%).

Interest Coverage: WSP's interest payments on its debt are well covered by EBIT (5.9x 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 2.004110x debt).


Next Steps

Dividend

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

1.93%

Expected Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%2.0%markettop25%6.0%industryaverage2.6%forecastin3Years1.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: WSP's dividend (1.93%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: WSP's dividend (1.93%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

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 (55.5%), 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 (36.3% payout ratio).


Next Steps

Management

What is the CEO of WSP Global's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Alexandre L'Heureux (46yo)

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 ($USD4.97M) is about average for companies of similar size in the Canadian market ($USD4.11M).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: WSP's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

59yo

Average Age

Experienced Board: WSP's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: WSP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$72,40014 Aug 19
Paul Raymond
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$72.40

Ownership Breakdown


Management Team

  • Guy Templeton

    President and CEO of Australia & New Zealand

    • Tenure: 0yrs
    • Compensation: CA$1.67m
  • Greg Kelly

    President & CEO of USA

    • Tenure: 0yrs
    • Compensation: CA$2.43m
  • Alexandre L'Heureux (46yo)

    President

    • Tenure: 3yrs
    • Compensation: CA$6.54m
  • Isabelle Adjahi

    Senior Vice President of Investor Relations & Communications

    • Tenure: 4.8yrs
  • Bruno Roy

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: CA$2.68m
  • Paul Dollin

    Chief Operating Officer

    • Tenure: 5.4yrs
    • Compensation: CA$2.78m
  • David Langlois

    Chief Accounting and Treasury Officer

    • Tenure: 0yrs
  • Gino Poulin

    Chief Information Officer

    • Tenure: 1.8yrs
  • Philippe Fortier

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.3yrs
  • Julianna Fox

    Chief Ethics and Compliance Officer

    • Tenure: 1.6yrs

Board Members

  • Pierre Shoiry (62yo)

    Vice Chairman of the Board

    • Tenure: 3.6yrs
    • Compensation: CA$311.01k
  • Louis-Philippe Carrière (58yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CA$195.00k
  • Paul Raymond (55yo)

    Director

    • Tenure: 0.4yrs
  • Chris Cole (73yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CA$357.25k
  • Birgit Nørgaard (61yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: CA$180.40k
  • Linda Galipeau (56yo)

    Director

    • Tenure: 0.8yrs
  • Alexandre L'Heureux (46yo)

    President

    • Tenure: 3yrs
    • Compensation: CA$6.54m
  • Suzanne Rancourt (60yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: CA$180.00k

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$8.174b
  • Shares outstanding: 105.34m
  • Website: https://www.wsp.com

Number of Employees


Location

  • WSP Global Inc.
  • 1600, René-Lévesque Boulevard West
  • 16th Floor
  • Montréal
  • Quebec
  • H3H 1P9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WSPTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2006
1W3DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2006
WSPO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 01:24
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


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.

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