WSP GLOBAL INC (WSP.CA) Stock Fundamental Analysis
TSX:WSP - Toronto Stock Exchange - CA92938W2022 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to WSP. WSP was compared to 7 industry peers in the Construction & Engineering industry. WSP scores excellent on profitability, but there are some minor concerns on its financial health. WSP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WSP was profitable.
In the past year WSP had a positive cash flow from operations.
In the past 5 years WSP has always been profitable.
In the past 5 years WSP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.37%, WSP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WSP has a Return On Equity (8.24%) which is in line with its industry peers.
WSP has a Return On Invested Capital (7.65%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for WSP is below the industry average of 10.05%.
The 3 year average ROIC (7.42%) for WSP is below the current ROIC(7.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.24% | ||
| ROIC | 7.65% |
ROA(3y)3.27%
ROA(5y)3.43%
ROE(3y)8.04%
ROE(5y)8.21%
ROIC(3y)7.42%
ROIC(5y)7.37%
1.3 Margins
WSP has a Profit Margin of 4.21%. This is in the better half of the industry: WSP outperforms 71.43% of its industry peers.
WSP's Profit Margin has improved in the last couple of years.
WSP has a better Operating Margin (8.93%) than 71.43% of its industry peers.
WSP's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 75.29%, WSP belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.93% | ||
| PM (TTM) | 4.21% | ||
| GM | 75.29% |
OM growth 3Y7.44%
OM growth 5Y7.57%
PM growth 3Y-2.93%
PM growth 5Y5.58%
GM growth 3Y-0.56%
GM growth 5Y-0.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WSP is destroying value.
WSP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WSP has more shares outstanding
WSP has a worse debt/assets ratio than last year.
2.2 Solvency
WSP has an Altman-Z score of 2.94. This is not the best score and indicates that WSP is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.94, WSP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WSP has a debt to FCF ratio of 4.75. This is a neutral value as WSP would need 4.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.75, WSP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WSP has a Debt/Equity ratio of 0.58. This is a neutral value indicating WSP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, WSP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.75 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.95
WACC8.03%
2.3 Liquidity
WSP has a Current Ratio of 1.12. This is a normal value and indicates that WSP is financially healthy and should not expect problems in meeting its short term obligations.
WSP has a Current ratio (1.12) which is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that WSP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, WSP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.23% over the past year.
Measured over the past years, WSP shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.94% on average per year.
The Revenue has grown by 11.98% in the past year. This is quite good.
The Revenue has been growing by 12.64% on average over the past years. This is quite good.
EPS 1Y (TTM)16.23%
EPS 3Y16.44%
EPS 5Y20.94%
EPS Q2Q%17.59%
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.29%
Revenue growth 5Y12.64%
Sales Q2Q%23.15%
3.2 Future
WSP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.39% yearly.
Based on estimates for the next years, WSP will show a quite strong growth in Revenue. The Revenue will grow by 9.28% on average per year.
EPS Next Y18.16%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
EPS Next 5YN/A
Revenue Next Year13.47%
Revenue Next 2Y9.95%
Revenue Next 3Y9.28%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.71, WSP can be considered very expensive at the moment.
WSP's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of WSP to the average of the S&P500 Index (24.21), we can say WSP is valued slightly more expensively.
With a Price/Forward Earnings ratio of 27.69, WSP can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WSP is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
WSP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WSP is on the same level as its industry peers.
WSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSP is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.11 | ||
| EV/EBITDA | 18.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WSP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WSP may justify a higher PE ratio.
A more expensive valuation may be justified as WSP's earnings are expected to grow with 16.39% in the coming years.
PEG (NY)1.8
PEG (5Y)1.56
EPS Next 2Y15.91%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
WSP has a yearly dividend return of 0.61%, which is pretty low.
WSP's Dividend Yield is comparable with the industry average which is at 1.93.
Compared to an average S&P500 Dividend Yield of 2.44, WSP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of WSP is nicely growing with an annual growth rate of 14.72%!
WSP has been paying a dividend for at least 10 years, so it has a reliable track record.
WSP has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.72%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
WSP pays out 27.46% of its income as dividend. This is a sustainable payout ratio.
The dividend of WSP is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.46%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
TSX:WSP (5/9/2025, 7:00:00 PM)
262.36
-1.31 (-0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners57.71%
Inst Owner ChangeN/A
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap34.24B
Analysts81.05
Price Target297.91 (13.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.47
Dividend Growth(5Y)14.72%
DP27.46%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-0.41%
Max EPS beat(2)1.95%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.16%
EPS beat(8)7
Avg EPS beat(8)2.54%
EPS beat(12)10
Avg EPS beat(12)2.68%
EPS beat(16)14
Avg EPS beat(16)5.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)0.95%
Revenue beat(4)3
Avg Revenue beat(4)7.99%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)33.32%
Revenue beat(8)6
Avg Revenue beat(8)9.03%
Revenue beat(12)10
Avg Revenue beat(12)17.35%
Revenue beat(16)14
Avg Revenue beat(16)20.54%
PT rev (1m)-0.39%
PT rev (3m)4.47%
EPS NQ rev (1m)-2.23%
EPS NQ rev (3m)-4.47%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-4.46%
Revenue NY rev (1m)-4.6%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.71 | ||
| Fwd PE | 27.69 | ||
| P/S | 2.12 | ||
| P/FCF | 28.11 | ||
| P/OCF | 24.78 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.44 |
EPS(TTM)8.02
EY3.06%
EPS(NY)9.48
Fwd EY3.61%
FCF(TTM)9.33
FCFY3.56%
OCF(TTM)10.59
OCFY4.04%
SpS123.87
BVpS63.39
TBVpS-20.83
PEG (NY)1.8
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.24% | ||
| ROCE | 10.37% | ||
| ROIC | 7.65% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 49.77% | ||
| OM | 8.93% | ||
| PM (TTM) | 4.21% | ||
| GM | 75.29% | ||
| FCFM | 7.53% |
ROA(3y)3.27%
ROA(5y)3.43%
ROE(3y)8.04%
ROE(5y)8.21%
ROIC(3y)7.42%
ROIC(5y)7.37%
ROICexc(3y)7.84%
ROICexc(5y)8.02%
ROICexgc(3y)43.25%
ROICexgc(5y)43.64%
ROCE(3y)10.06%
ROCE(5y)9.98%
ROICexcg growth 3Y-0.61%
ROICexcg growth 5Y10.43%
ROICexc growth 3Y-1.72%
ROICexc growth 5Y0.95%
OM growth 3Y7.44%
OM growth 5Y7.57%
PM growth 3Y-2.93%
PM growth 5Y5.58%
GM growth 3Y-0.56%
GM growth 5Y-0.51%
F-Score4
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.75 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 23.9% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 64.93% | ||
| Profit Quality | 178.76% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.94 |
F-Score4
WACC8.03%
ROIC/WACC0.95
Cap/Depr(3y)25.14%
Cap/Depr(5y)23.67%
Cap/Sales(3y)1.22%
Cap/Sales(5y)1.18%
Profit Quality(3y)158.5%
Profit Quality(5y)209.53%
High Growth Momentum
Growth
EPS 1Y (TTM)16.23%
EPS 3Y16.44%
EPS 5Y20.94%
EPS Q2Q%17.59%
EPS Next Y18.16%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
EPS Next 5YN/A
Revenue 1Y (TTM)11.98%
Revenue growth 3Y16.29%
Revenue growth 5Y12.64%
Sales Q2Q%23.15%
Revenue Next Year13.47%
Revenue Next 2Y9.95%
Revenue Next 3Y9.28%
Revenue Next 5YN/A
EBIT growth 1Y20.61%
EBIT growth 3Y24.95%
EBIT growth 5Y21.17%
EBIT Next Year72.33%
EBIT Next 3Y27.65%
EBIT Next 5YN/A
FCF growth 1Y51.07%
FCF growth 3Y9.07%
FCF growth 5Y12.86%
OCF growth 1Y40.11%
OCF growth 3Y9.24%
OCF growth 5Y11.16%