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

0.8%

TSX:WSP

-0.09%

CA Construction

-0.6%

CA Market


1 Year Return

0.9%

TSX:WSP

-31.2%

CA Construction

-4.9%

CA Market

WSP outperformed the Construction industry which returned -30.9% over the past year.

WSP outperformed the Market in Canada which returned -4.8% over the past year.


Share holder returns

WSPIndustryMarket
7 Day0.8%-0.09%-0.6%
30 Day-4.0%-13.5%-2.6%
90 Day0.2%-12.3%-2.0%
1 Year3.2%0.9%-29.9%-31.2%-1.5%-4.9%
3 Year81.8%67.8%-15.6%-21.0%14.0%3.9%
5 Year128.0%94.9%-8.9%-19.5%12.3%-3.5%

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?

26.39x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

WSP Global's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

WSP Global's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

WSP Global is overvalued based on earnings compared to the CA Construction industry average.

WSP Global is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

WSP Global is poor value based on expected growth next year.


Price Based on Value of Assets

WSP Global is overvalued based on assets compared to the CA Construction industry average.


Next Steps

Future Growth

How is WSP Global expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

WSP Global's revenue is expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).

WSP Global's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).

WSP Global's revenue growth is positive but not above the Canada market average.

WSP Global's earnings growth is expected to exceed the Canada market average.

WSP Global's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

WSP Global is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

WSP Global has delivered over 20% year on year earnings growth in the past 5 years.

WSP Global's 1-year earnings growth exceeds its 5-year average (28.8% vs 20.8%)

WSP Global's earnings growth has exceeded the North America Construction industry average in the past year (28.8% vs 5.4%).


Return on Equity

WSP Global has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

WSP Global used its assets more efficiently than the CA Construction industry average last year based on Return on Assets.


Return on Capital Employed

WSP Global has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is WSP Global's financial position?


Financial Position Analysis

WSP Global is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

WSP Global's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

WSP Global's level of debt (51%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.9% vs 51% today).

Debt is well covered by operating cash flow (43.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

2.10%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase WSP Global before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

WSP Global's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2%).

WSP Global's dividend is below the markets top 25% of dividend payers in Canada (5.88%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

No dividend growth in 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Alexandre L'Heureux (46yo)

2.8yrs

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

Alexandre's remuneration is about average for companies of similar size in Canada.

Alexandre's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

The tenure for the WSP Global management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

The tenure for the WSP Global board of directors is about average.


Insider Trading

More shares have been bought than sold by WSP Global individual insiders 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: 0.0yrs
    • Compensation: CA$1.67m
  • Greg Kelly

    President & CEO of USA

    • Tenure: 0.0yrs
    • Compensation: CA$2.43m
  • Alexandre L'Heureux (46yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$6.54m
  • Isabelle Adjahi

    Senior Vice President of Investor Relations & Communications

    • Tenure: 4.6yrs
  • Bruno Roy

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: CA$2.68m
  • Paul Dollin

    Chief Operating Officer

    • Tenure: 5.3yrs
    • Compensation: CA$2.78m
  • David Langlois

    Chief Accounting and Treasury Officer

    • Tenure: 0.0yrs
  • Gino Poulin

    Chief Information Officer

    • Tenure: 1.6yrs
  • Philippe Fortier

    Chief Legal Officer

    • Tenure: 0.1yrs
  • Julianna Fox

    Chief Ethics and Compliance Officer

    • Tenure: 1.4yrs

Board Members

  • Pierre Shoiry (62yo)

    Vice Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: CA$311.01k
  • Louis-Philippe Carrière (58yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CA$195.00k
  • Paul Raymond (55yo)

    Director

    • Tenure: 0.3yrs
  • Chris Cole (73yo)

    Chairman

    • Tenure: 0.0yrs
    • Compensation: CA$357.25k
  • Birgit Nørgaard (61yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: CA$180.40k
  • Linda Galipeau (56yo)

    Director

    • Tenure: 0.6yrs
  • Alexandre L'Heureux (46yo)

    President

    • Tenure: 2.8yrs
    • Compensation: CA$6.54m
  • Suzanne Rancourt (60yo)

    Director

    • Tenure: 3.3yrs
    • 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$7.516b
  • 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 Analysis2019/08/21 00:09
End of Day Share Price2019/08/20 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.