WSP GLOBAL INC (WSP.CA) Stock Fundamental Analysis
TSX:WSP - Toronto Stock Exchange - CA92938W2022 - Common Stock - Currency: CAD
Taking everything into account, WSP scores 6 out of 10 in our fundamental rating. WSP was compared to 7 industry peers in the Construction & Engineering industry. While WSP belongs to the best of the industry regarding profitability, 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.
WSP had a positive operating cash flow in the past year.
In the past 5 years WSP has always been profitable.
Each year in the past 5 years WSP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.53%, WSP is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Return On Equity of WSP (8.31%) is better than 62.50% of its industry peers.
WSP has a better Return On Invested Capital (7.77%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WSP is below the industry average of 10.22%.
The last Return On Invested Capital (7.77%) for WSP is above the 3 year average (7.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 8.31% | ||
| ROIC | 7.77% |
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 better Profit Margin (4.12%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of WSP has grown nicely.
WSP has a better Operating Margin (8.89%) than 75.00% 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 74.99%, 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 | 8.89% | ||
| PM (TTM) | 4.12% | ||
| GM | 74.99% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WSP is destroying value.
WSP has more shares outstanding than it did 1 year ago.
WSP has more shares outstanding than it did 5 years ago.
WSP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.17 indicates that WSP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.17, WSP is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
WSP has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as WSP would need 3.82 years to pay back of all of its debts.
The Debt to FCF ratio of WSP (3.82) is better than 87.50% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that WSP is somewhat dependend on debt financing.
WSP's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. WSP outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.89
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.20 indicates that WSP should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.20, WSP is doing good in the industry, outperforming 62.50% of the companies in the same industry.
WSP has a Quick Ratio of 1.20. 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 Quick ratio of 1.20. This is in the better half of the industry: WSP outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.24% over the past year.
WSP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.94% yearly.
WSP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.77%.
WSP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.64% yearly.
EPS 1Y (TTM)16.24%
EPS 3Y16.44%
EPS 5Y20.94%
EPS Q2Q%13.55%
Revenue 1Y (TTM)16.77%
Revenue growth 3Y16.29%
Revenue growth 5Y12.64%
Sales Q2Q%19.83%
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.
The Revenue is expected to grow by 9.28% on average over the next years. This is quite good.
EPS Next Y18.16%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
EPS Next 5YN/A
Revenue Next Year13.36%
Revenue Next 2Y9.9%
Revenue Next 3Y9.28%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 32.99 indicates a quite expensive valuation of WSP.
62.50% of the companies in the same industry are more expensive than WSP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. WSP is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 25.20 indicates a quite expensive valuation of WSP.
Based on the Price/Forward Earnings ratio, WSP is valued a bit more expensive than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WSP to the average of the S&P500 Index (22.13), we can say WSP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 25.2 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than WSP, based on the Enterprise Value to EBITDA ratio.
WSP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WSP is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.16 | ||
| EV/EBITDA | 18.16 |
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.
WSP has a very decent profitability rating, which 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)1.82
PEG (5Y)1.58
EPS Next 2Y15.91%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, WSP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.63, WSP has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WSP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of WSP grows each year by 14.72%, which is quite nice.
WSP has paid a dividend for at least 10 years, which is 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 27.08% 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.
DP27.08%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
TSX:WSP (6/13/2025, 7:00:00 PM)
271.52
-3.38 (-1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners57.29%
Inst Owner ChangeN/A
Ins Owners0.45%
Ins Owner ChangeN/A
Market Cap35.44B
Analysts81.05
Price Target300.83 (10.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend1.47
Dividend Growth(5Y)14.72%
DP27.08%
Div Incr Years1
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.81%
Min EPS beat(2)1.66%
Max EPS beat(2)1.95%
EPS beat(4)3
Avg EPS beat(4)1.16%
Min EPS beat(4)-0.41%
Max EPS beat(4)1.95%
EPS beat(8)7
Avg EPS beat(8)2.37%
EPS beat(12)10
Avg EPS beat(12)2.48%
EPS beat(16)14
Avg EPS beat(16)3.38%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.28%
Max Revenue beat(2)0.95%
Revenue beat(4)3
Avg Revenue beat(4)7.96%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)33.32%
Revenue beat(8)6
Avg Revenue beat(8)4.4%
Revenue beat(12)10
Avg Revenue beat(12)14.74%
Revenue beat(16)14
Avg Revenue beat(16)19.09%
PT rev (1m)0.98%
PT rev (3m)1.88%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-5.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.99 | ||
| Fwd PE | 25.2 | ||
| P/S | 2.09 | ||
| P/FCF | 24.16 | ||
| P/OCF | 21.74 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.16 |
EPS(TTM)8.23
EY3.03%
EPS(NY)10.78
Fwd EY3.97%
FCF(TTM)11.24
FCFY4.14%
OCF(TTM)12.49
OCFY4.6%
SpS130.03
BVpS64.42
TBVpS-19.73
PEG (NY)1.82
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 8.31% | ||
| ROCE | 10.55% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 40% | ||
| OM | 8.89% | ||
| PM (TTM) | 4.12% | ||
| GM | 74.99% | ||
| FCFM | 8.64% |
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-Score3
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 22.98% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 5.97 | ||
| Cash Conversion | 73.45% | ||
| Profit Quality | 209.93% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.17 |
F-Score3
WACC8.69%
ROIC/WACC0.89
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)16.24%
EPS 3Y16.44%
EPS 5Y20.94%
EPS Q2Q%13.55%
EPS Next Y18.16%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
EPS Next 5YN/A
Revenue 1Y (TTM)16.77%
Revenue growth 3Y16.29%
Revenue growth 5Y12.64%
Sales Q2Q%19.83%
Revenue Next Year13.36%
Revenue Next 2Y9.9%
Revenue Next 3Y9.28%
Revenue Next 5YN/A
EBIT growth 1Y22.41%
EBIT growth 3Y24.95%
EBIT growth 5Y21.17%
EBIT Next Year71.33%
EBIT Next 3Y28.09%
EBIT Next 5YN/A
FCF growth 1Y107.82%
FCF growth 3Y9.07%
FCF growth 5Y12.86%
OCF growth 1Y86.68%
OCF growth 3Y9.24%
OCF growth 5Y11.16%