WSP GLOBAL INC (WSP.CA) Stock Fundamental Analysis
TSX:WSP - Toronto Stock Exchange - CA92938W2022 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to WSP. 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 has a correct valuation and a medium 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.
WSP had positive earnings in each of the past 5 years.
Each year in the past 5 years WSP had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.53%, WSP perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WSP's Return On Equity of 8.31% is in line compared to the rest of the industry. WSP outperforms 57.14% of its industry peers.
WSP has a Return On Invested Capital (7.77%) which is in line with 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 3 year average ROIC (7.42%) for WSP is below the current ROIC(7.77%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 4.12%, WSP is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of WSP has grown nicely.
WSP has a better Operating Margin (8.89%) than 71.43% of its industry peers.
WSP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 74.99%, WSP belongs to the best 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
WSP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WSP has more shares outstanding
The number of shares outstanding for WSP has been increased compared to 5 years ago.
The debt/assets ratio for WSP is higher compared to a year ago.
2.2 Solvency
WSP has an Altman-Z score of 3.26. This indicates that WSP is financially healthy and has little risk of bankruptcy at the moment.
WSP has a Altman-Z score of 3.26. This is comparable to the rest of the industry: WSP outperforms 57.14% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 3.82, WSP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
WSP has a Debt/Equity ratio of 0.61. This is a neutral value indicating 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 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 3.26 |
ROIC/WACC0.82
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.20 indicates that WSP should not have too much problems paying its short term obligations.
WSP's Current ratio of 1.20 is in line compared to the rest of the industry. WSP outperforms 57.14% of its industry peers.
A Quick Ratio of 1.20 indicates that WSP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, WSP is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
WSP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.24%, which is quite good.
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.
Based on estimates for the next years, WSP will show a quite strong growth in Revenue. The Revenue will grow by 9.32% on average per year.
EPS Next Y18.16%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
EPS Next 5YN/A
Revenue Next Year13.7%
Revenue Next 2Y10.51%
Revenue Next 3Y9.32%
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
WSP is valuated quite expensively with a Price/Earnings ratio of 34.57.
WSP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.99, WSP is valued a bit more expensive.
WSP is valuated quite expensively with a Price/Forward Earnings ratio of 26.40.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, WSP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.57 | ||
| Fwd PE | 26.4 |
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 rather cheap when compared to the industry. WSP is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.31 | ||
| EV/EBITDA | 18.92 |
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.
WSP's earnings are expected to grow with 16.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)1.65
EPS Next 2Y15.91%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
WSP has a yearly dividend return of 0.53%, which is pretty low.
WSP's Dividend Yield is comparable with the industry average which is at 1.60.
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 | 0.53% |
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.
WSP's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.08%
EPS Next 2Y15.91%
EPS Next 3Y16.39%
TSX:WSP (8/6/2025, 7:00:00 PM)
284.47
-0.87 (-0.3%)
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 Cap37.13B
Analysts81.05
Price Target303.67 (6.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)0.34%
PT rev (3m)1.93%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.14%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.57 | ||
| Fwd PE | 26.4 | ||
| P/S | 2.19 | ||
| P/FCF | 25.31 | ||
| P/OCF | 22.78 | ||
| P/B | 4.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.92 |
EPS(TTM)8.23
EY2.89%
EPS(NY)10.78
Fwd EY3.79%
FCF(TTM)11.24
FCFY3.95%
OCF(TTM)12.49
OCFY4.39%
SpS130.01
BVpS64.41
TBVpS-19.73
PEG (NY)1.9
PEG (5Y)1.65
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 | 3.26 |
F-Score3
WACC9.52%
ROIC/WACC0.82
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 Year13.7%
Revenue Next 2Y10.51%
Revenue Next 3Y9.32%
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%