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, Europe, Middle East, India, Africa, Australia, Asia, New Zealand, and internationally.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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

4.7%

WSP

3.0%

CA Construction

3.0%

CA Market


1 Year Return

7.5%

WSP

-19.1%

CA Construction

-24.5%

CA Market

Return vs Industry: WSP exceeded the Canadian Construction industry which returned -19.1% over the past year.

Return vs Market: WSP exceeded the Canadian Market which returned -24.5% over the past year.


Shareholder returns

WSPIndustryMarket
7 Day4.7%3.0%3.0%
30 Day-5.8%-20.4%-21.2%
90 Day-11.6%-21.4%-24.4%
1 Year9.6%7.5%-17.7%-19.1%-22.0%-24.5%
3 Year77.5%65.7%-17.5%-22.3%-13.9%-21.9%
5 Year109.9%82.4%7.6%-4.1%-2.0%-16.6%

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 compared to its fair value and its price relative to the market?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WSP (CA$78.89) is trading below our estimate of fair value (CA$102.49)

Significantly Below Fair Value: WSP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WSP is poor value based on its PE Ratio (29x) compared to the Construction industry average (12.3x).

PE vs Market: WSP is poor value based on its PE Ratio (29x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: WSP is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: WSP is overvalued based on its PB Ratio (2.5x) compared to the CA Construction industry average (0.9x).


Next Steps

Future Growth

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

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSP's forecast earnings growth (25% per year) is above the savings rate (1.4%).

Earnings vs Market: WSP's earnings (25% per year) are forecast to grow faster than the Canadian market (5.1% 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 (-4.2% per year).

High Growth Revenue: WSP's revenue is forecast to decline over the next 3 years (-4.2% 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 (13.7%).


Next Steps

Past Performance

How has WSP Global performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSP has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: WSP's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: WSP's earnings growth over the past year (15.5%) is below its 5-year average (18% per year).

Earnings vs Industry: WSP earnings growth over the past year (15.5%) underperformed the Construction industry 23.5%.


Return on Equity

High ROE: WSP's Return on Equity (8.6%) is considered low.


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) exceed its short term liabilities (CA$3.0B).

Long Term Liabilities: WSP's short term assets (CA$3.3B) exceed its long term liabilities (CA$2.3B).


Debt to Equity History and Analysis

Debt Level: WSP's debt to equity ratio (42%) is considered high.

Reducing Debt: WSP's debt to equity ratio has increased from 39.4% to 42% over the past 5 years.

Debt Coverage: WSP's debt is well covered by operating cash flow (58.2%).

Interest Coverage: WSP's interest payments on its debt are well covered by EBIT (4.5x 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 2.3x debt).


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSP's dividend (1.9%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: WSP's dividend (1.9%) is low compared to the top 25% of dividend payers in the Canadian market (8.7%).


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 (55.1%), 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 (32.3% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Alexandre L'Heureux (46yo)

3.5s

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 ($USD4.63M) is above average for companies of similar size in the Canadian market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexandre L'Heureux
President3.5yrsCA$6.54m0.029% CA$2.5m
Paul Dollin
Chief Operating Officer5.92yrsCA$2.78m0.0010% CA$86.2k
Bruno Roy
Executive Officer0.17yrCA$2.68mno data
Guy Templeton
President and CEO of Australia & New Zealand8.25yrsCA$1.67m0.010% CA$869.0k
Alain Michaud
Chief Financial Officer0.17yrno data0.0012% CA$101.3k
David Langlois
Chief Accounting and Treasury Officerno datano data0.00052% CA$43.5k
Gino Poulin
Chief Information Officer2.25yrsno datano data
Isabelle Adjahi
Senior Vice President of Investor Relations & Communications5.25yrsno data0.00079% CA$66.1k
Julianna Fox
Chief Ethics and Compliance Officer2.08yrsno datano data
Philippe Fortier
Chief Legal Officer & Corporate Secretary0.75yrno data0.00036% CA$30.1k

2.3yrs

Average Tenure

Experienced Management: WSP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexandre L'Heureux
President3.5yrsCA$6.54m0.029% CA$2.5m
Pierre Shoiry
Vice Chairman of the Board4.08yrsCA$311.01k0.60% CA$49.9m
Louis-Philippe Carrière
Independent Director2.92yrsCA$195.00k0.0029% CA$244.5k
Paul Raymond
Independent Director0.92yrno data0.00094% CA$78.7k
Christopher Cole
Independent Chairmanno dataCA$357.25k0.022% CA$1.8m
Birgit Nørgaard
Non-Executive Independent Director6.92yrsCA$180.40k0.0038% CA$315.6k
Linda Galipeau
Non-Executive Independent Director1.25yrsno datano data
Suzanne Rancourt
Non-Executive Independent Director3.92yrsCA$180.00k0.0046% CA$388.4k

3.9yrs

Average Tenure

59yo

Average Age

Experienced Board: WSP's board of directors are considered experienced (3.9 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 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$8.372b
  • Shares outstanding: 106.12m
  • 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

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, Europe, Middle East, India, Africa, Australia, Asia, New Zealand, and internationally. The company advises, plans, designs, and manages projects for rail transit, aviation, highways, bridges, tunnels, water, maritime, and urban infrastructure for public and private clients, construction contractors, and other partners. It also provides engineering and consultancy services, such as decarbonisation strategies, SMART building design, structural and mechanical, electrical, and plumbing engineering 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. 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. In addition, the company offers strategic advisory services comprising planning and advisory, management, and technology and sustainability services. 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:14
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.