TSX:WSP

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

WSP

-1.0%

CA Construction

-1.6%

CA Market


1 Year Return

7.8%

WSP

5.1%

CA Construction

-6.3%

CA Market

Return vs Industry: WSP exceeded the Canadian Construction industry which returned 5.5% over the past year.

Return vs Market: WSP exceeded the Canadian Market which returned -5.5% over the past year.


Shareholder returns

WSPIndustryMarket
7 Day-0.7%-1.0%-1.6%
30 Day1.1%1.3%-0.8%
90 Day2.7%0.7%-0.7%
1 Year9.7%7.8%6.9%5.1%-2.9%-6.3%
3 Year62.1%52.1%-11.8%-16.5%3.4%-6.6%
5 Year113.3%87.0%20.2%7.7%31.6%11.4%

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

Valuation

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

39.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WSP (CA$87.88) is trading above our estimate of fair value (CA$82.97)

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 (39.3x) compared to the CA Construction industry average (18.9x).

PE vs Market: WSP is poor value based on its PE Ratio (39.3x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: WSP is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: WSP is overvalued based on its PB Ratio (2.5x) compared to the CA Construction industry average (2.2x).


Next Steps

Future Growth

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

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WSP's forecast earnings growth (26.3% per year) is above the savings rate (1.7%).

Earnings vs Market: WSP's earnings (26.3% per year) are forecast to grow faster than the Canadian market (22.8% per year).

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

Revenue vs Market: WSP's revenue (1.1% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: WSP's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WSP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has WSP Global performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WSP has a large one-off loss of CA$95.2M impacting its June 27 2020 financial results.

Growing Profit Margin: WSP's current net profit margins (2.7%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: WSP's earnings have grown by 10.9% 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 (-16.3%) over the past year, making it difficult to compare to the Construction industry average (-27.7%).


Return on Equity

High ROE: WSP's Return on Equity (5.9%) 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$3.8B) exceed its short term liabilities (CA$3.3B).

Long Term Liabilities: WSP's short term assets (CA$3.8B) exceed its long term liabilities (CA$2.1B).


Debt to Equity History and Analysis

Debt Level: WSP's debt to equity ratio (28.9%) is considered satisfactory.

Reducing Debt: WSP's debt to equity ratio has reduced from 40.8% to 28.9% over the past 5 years.

Debt Coverage: WSP's debt is well covered by operating cash flow (103.4%).

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


Balance Sheet


Next Steps

Dividend

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

1.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WSP's dividend (1.71%) is higher than the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: WSP's dividend (1.71%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).


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 (67.1%), WSP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Alexandre L'Heureux (47 yo)

4yrs

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 ($USD5.35M) is above average for companies of similar size in the Canadian market ($USD3.97M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexandre L'Heureux
President4yrsCA$7.03m0.027%
CA$ 2.7m
Paul Dollin
Chief Operating Officer6.42yrsCA$3.26m0.00096%
CA$ 95.5k
Ryan Brain
President & CEO of Canada1.75yrsCA$1.85m0.000050%
CA$ 5.0k
Alain Michaud
Chief Financial Officer0.67yrno data0.0011%
CA$ 113.5k
David Langlois
Chief Accounting and Treasury Officerno datano data0.00048%
CA$ 47.8k
Gino Poulin
Chief Information Officer2.75yrsno datano data
Isabelle Adjahi
Senior Vice President of Investor Relations & Communications5.75yrsno data0.00075%
CA$ 74.6k
Julianna Fox
Chief Ethics and Compliance Officer2.58yrsno datano data
Philippe Fortier
Chief Legal Officer & Corporate Secretary1.25yrsno data0.00033%
CA$ 32.8k
Barbara Oberleitner
Global Head of Tax & VP5.75yrsno datano data
Suzanne Puccino
Senior VP & Director of Workplace Strategy3.67yrsno datano data
Magnus Meyer
Managing Director of Nordics & Continental Europe6.67yrsno datano data

3.7yrs

Average Tenure

Experienced Management: WSP's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexandre L'Heureux
President4yrsCA$7.03m0.027%
CA$ 2.7m
Pierre Shoiry
Vice Chairman of the Board4.58yrsCA$304.06k0.56%
CA$ 55.6m
Louis-Philippe Carrière
Independent Director3.42yrsCA$210.00k0.0027%
CA$ 272.7k
Paul Raymond
Independent Director1.42yrsCA$119.01k0.00088%
CA$ 87.6k
Christopher Cole
Independent Chairmanno dataCA$414.67k0.020%
CA$ 2.0m
Birgit Nørgaard
Independent & Non Executive Director7.42yrsCA$185.00k0.0040%
CA$ 395.1k
Linda Galipeau
Independent & Non-Executive Director1.75yrsCA$205.00kno data
Suzanne Rancourt
Independent & Non-Executive Director4.42yrsCA$190.00k0.0043%
CA$ 433.0k

4.4yrs

Average Tenure

60yo

Average Age

Experienced Board: WSP's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WSP 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 7.5%.


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$9.953b
  • Shares outstanding: 113.26m
  • 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, 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 Analysis2020/10/28 00:54
End of Day Share Price2020/10/27 00:00
Earnings2020/06/27
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.