WSP GLOBAL INC (WSP.CA) Stock Fundamental Analysis
TSX:WSP - Toronto Stock Exchange - CA92938W2022 - Common Stock - Currency: CAD
Overall WSP gets a fundamental rating of 5 out of 10. We evaluated WSP against 7 industry peers in the Construction & Engineering industry. WSP scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, WSP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WSP had positive earnings in the past year.
In the past year WSP had a positive cash flow from operations.
WSP had positive earnings in each of the past 5 years.
WSP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WSP has a Return On Assets of 3.42%. This is comparable to the rest of the industry: WSP outperforms 57.14% of its industry peers.
Looking at the Return On Equity, with a value of 9.45%, WSP is in line with its industry, outperforming 42.86% of the companies in the same industry.
WSP has a Return On Invested Capital (8.12%) which is comparable to the rest of the industry.
WSP had an Average Return On Invested Capital over the past 3 years of 7.34%. This is below the industry average of 9.72%.
The 3 year average ROIC (7.34%) for WSP is below the current ROIC(8.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 9.45% | ||
| ROIC | 8.12% |
ROA(3y)3.55%
ROA(5y)3.41%
ROE(3y)8.68%
ROE(5y)8.28%
ROIC(3y)7.34%
ROIC(5y)7.31%
1.3 Margins
WSP has a Profit Margin of 4.24%. 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.
Looking at the Operating Margin, with a value of 8.82%, WSP is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WSP's Operating Margin has improved in the last couple of years.
WSP has a better Gross Margin (75.75%) than 100.00% of its industry peers.
WSP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.82% | ||
| PM (TTM) | 4.24% | ||
| GM | 75.75% |
OM growth 3Y9.55%
OM growth 5Y7.24%
PM growth 3Y6.71%
PM growth 5Y3.96%
GM growth 3Y-1.05%
GM growth 5Y-0.17%
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.
WSP has about the same amout of shares outstanding than it did 1 year ago.
WSP has more shares outstanding than it did 5 years ago.
WSP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.91 indicates that WSP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, WSP is in line with its industry, outperforming 57.14% of the companies in the same industry.
WSP has a debt to FCF ratio of 4.60. This is a neutral value as WSP would need 4.60 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.60, WSP belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that WSP is somewhat dependend on debt financing.
WSP's Debt to Equity ratio of 0.69 is in line compared to the rest of the industry. WSP outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.93
WACC8.7%
2.3 Liquidity
WSP has a Current Ratio of 1.26. This is a normal value and indicates that WSP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WSP (1.26) is better than 71.43% of its industry peers.
A Quick Ratio of 1.26 indicates that WSP should not have too much problems paying its short term obligations.
WSP has a better Quick ratio (1.26) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.39% over the past year.
Measured over the past years, WSP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.51% on average per year.
Looking at the last year, WSP shows a small growth in Revenue. The Revenue has grown by 6.67% in the last year.
WSP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.79% yearly.
EPS 1Y (TTM)16.39%
EPS 3Y31.13%
EPS 5Y19.51%
EPS Q2Q%13.13%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y17.92%
Revenue growth 5Y12.79%
Sales Q2Q%9.58%
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 15.81% yearly.
Based on estimates for the next years, WSP will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y16.29%
EPS Next 2Y17.17%
EPS Next 3Y15.81%
EPS Next 5YN/A
Revenue Next Year12.19%
Revenue Next 2Y13.61%
Revenue Next 3Y11.34%
Revenue Next 5Y1.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 32.88, WSP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WSP is on the same level as its industry peers.
WSP is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
WSP is valuated quite expensively with a Price/Forward Earnings ratio of 26.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WSP indicates a slightly more expensive valuation: WSP is more expensive than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WSP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.88 | ||
| Fwd PE | 26.62 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WSP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.07 | ||
| EV/EBITDA | 17.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WSP may justify a higher PE ratio.
WSP's earnings are expected to grow with 15.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)1.68
EPS Next 2Y17.17%
EPS Next 3Y15.81%
5. Dividend
5.1 Amount
WSP has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, WSP has a dividend in line with its industry peers.
With a Dividend Yield of 0.59, WSP pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of WSP is nicely growing with an annual growth rate of 11.60%!
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)11.6%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
WSP pays out 28.97% of its income as dividend. This is a sustainable payout ratio.
WSP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.97%
EPS Next 2Y17.17%
EPS Next 3Y15.81%
TSX:WSP (2/21/2025, 7:00:00 PM)
252.16
-1.33 (-0.52%)
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 Cap32.91B
Analysts80
Price Target291.14 (15.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.3
Dividend Growth(5Y)11.6%
DP28.97%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.51%
Min EPS beat(2)-0.41%
Max EPS beat(2)1.42%
EPS beat(4)3
Avg EPS beat(4)2.16%
Min EPS beat(4)-0.41%
Max EPS beat(4)4.16%
EPS beat(8)7
Avg EPS beat(8)3.26%
EPS beat(12)10
Avg EPS beat(12)3.39%
EPS beat(16)13
Avg EPS beat(16)4.57%
Revenue beat(2)1
Avg Revenue beat(2)15.31%
Min Revenue beat(2)-2.7%
Max Revenue beat(2)33.32%
Revenue beat(4)2
Avg Revenue beat(4)7.22%
Min Revenue beat(4)-2.7%
Max Revenue beat(4)33.32%
Revenue beat(8)6
Avg Revenue beat(8)14.18%
Revenue beat(12)10
Avg Revenue beat(12)20.38%
Revenue beat(16)14
Avg Revenue beat(16)22.22%
PT rev (1m)2.1%
PT rev (3m)9.17%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)8.79%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.88 | ||
| Fwd PE | 26.62 | ||
| P/S | 2.16 | ||
| P/FCF | 27.07 | ||
| P/OCF | 23.76 | ||
| P/B | 4.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.56 |
EPS(TTM)7.67
EY3.04%
EPS(NY)9.47
Fwd EY3.76%
FCF(TTM)9.32
FCFY3.69%
OCF(TTM)10.61
OCFY4.21%
SpS116.68
BVpS52.3
TBVpS-11.85
PEG (NY)2.02
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 9.45% | ||
| ROCE | 10.99% | ||
| ROIC | 8.12% | ||
| ROICexc | 9.27% | ||
| ROICexgc | 41.96% | ||
| OM | 8.82% | ||
| PM (TTM) | 4.24% | ||
| GM | 75.75% | ||
| FCFM | 7.98% |
ROA(3y)3.55%
ROA(5y)3.41%
ROE(3y)8.68%
ROE(5y)8.28%
ROIC(3y)7.34%
ROIC(5y)7.31%
ROICexc(3y)8.02%
ROICexc(5y)7.98%
ROICexgc(3y)43.72%
ROICexgc(5y)39.9%
ROCE(3y)9.91%
ROCE(5y)9.87%
ROICexcg growth 3Y3.22%
ROICexcg growth 5Y4.77%
ROICexc growth 3Y1.86%
ROICexc growth 5Y4.08%
OM growth 3Y9.55%
OM growth 5Y7.24%
PM growth 3Y6.71%
PM growth 5Y3.96%
GM growth 3Y-1.05%
GM growth 5Y-0.17%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 4.6 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 22.51% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 6.01 | ||
| Cash Conversion | 66.08% | ||
| Profit Quality | 188.45% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.91 |
F-Score5
WACC8.7%
ROIC/WACC0.93
Cap/Depr(3y)24.96%
Cap/Depr(5y)25.06%
Cap/Sales(3y)1.27%
Cap/Sales(5y)1.31%
Profit Quality(3y)165%
Profit Quality(5y)220.22%
High Growth Momentum
Growth
EPS 1Y (TTM)16.39%
EPS 3Y31.13%
EPS 5Y19.51%
EPS Q2Q%13.13%
EPS Next Y16.29%
EPS Next 2Y17.17%
EPS Next 3Y15.81%
EPS Next 5YN/A
Revenue 1Y (TTM)6.67%
Revenue growth 3Y17.92%
Revenue growth 5Y12.79%
Sales Q2Q%9.58%
Revenue Next Year12.19%
Revenue Next 2Y13.61%
Revenue Next 3Y11.34%
Revenue Next 5Y1.83%
EBIT growth 1Y20.09%
EBIT growth 3Y29.18%
EBIT growth 5Y20.96%
EBIT Next Year148.69%
EBIT Next 3Y46.83%
EBIT Next 5Y26.8%
FCF growth 1Y114.79%
FCF growth 3Y-7.9%
FCF growth 5Y8.23%
OCF growth 1Y92.23%
OCF growth 3Y-4.29%
OCF growth 5Y8.05%