WSP Global (WSP) AI Stock Analysis

• Market Cap: C$36.76B
• Dividend Yield: 0.53%
• Average Volume (3M): 256.15K
• Price to Earnings (P/E): 51.2
• Beta (1Y): 0.84
• Revenue Growth: 16.77%
• EPS Growth: 21.38%
• Country: CA
• Employees: 72,600
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 1.76
• Shares Outstanding: 130,528,920
• 10 Day Avg. Volume: 206,937
• 30 Day Avg. Volume: 256,153
• PEG Ratio: -3.71
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$299.75
• Price Target Upside: 6.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: C$309.00 ▲(9.73%Upside)

WSP Global's strong financial performance and positive earnings call highlights, such as robust growth in North America and a record backlog, are significant factors for the stock's score. The high valuation and technical analysis reflecting mixed signals slightly temper the overall positive outlook. Notable corporate events further support strategic growth, although challenges remain in the APAC region and macroeconomic conditions.

Positive Factors

Mergers and Acquisitions

The proposed acquisition of Power Engineers not only marks a transformative step that will position the engineering consultancy at the forefront of the energy transition.

Strategic Partnerships

The company announced a 7-year partnership with Microsoft to leverage its engineering expertise and develop new digital solutions for the industry.

Negative Factors

Financial Dependencies

It draws financial support from Street and WSP’s four anchor shareholders, leaving the door open for similar deals in the EMEIA or APAC regions.

WSP Global Business Overview & Revenue Model

Company Description

WSP Global Inc. is a leading global engineering and professional services firm headquartered in Montreal, Canada. The company operates in various sectors, including transportation and infrastructure, property and buildings, environment, industry, and resources. WSP provides a wide range of services, such as consulting, engineering, design, and project management, to public and private sector clients worldwide. Its multidisciplinary approach allows it to deliver innovative solutions to complex engineering challenges, enhancing the sustainability and resilience of communities and environments.

How the Company Makes Money

WSP Global makes money primarily through the provision of engineering and consulting services across its various sectors. Revenue is generated from fees charged for services such as project management, design, consulting, and engineering solutions. The company undertakes projects for government agencies, private sector companies, and other organizations, often working on long-term contracts. Key revenue streams include transportation and infrastructure projects, environmental consulting, building design and engineering, and industrial services. WSP's global presence and reputation for expertise enable it to secure significant contracts and partnerships, which contribute to its earnings. Additionally, strategic acquisitions and mergers enhance its service offerings and market reach, further boosting revenue potential.

WSP Global Financial Statement Overview

Summary

WSP Global exhibits strong financial performance with significant revenue and profit growth, healthy margins, and robust cash flow generation. However, the slight decline in gross profit margin and increasing debt require careful management.

Income Statement

WSP Global demonstrates strong revenue and profit growth with a robust TTM (Trailing-Twelve-Months) revenue increase of 4.97% over the previous year. The company maintains healthy margins, including a TTM Gross Profit Margin of 61.12% and a Net Profit Margin of 4.12%. Continued EBIT and EBITDA growth further strengthen their profitability. However, the slight decline in Gross Profit Margin from the previous annual report indicates potential cost pressures.

Balance Sheet

The balance sheet of WSP Global is solid with a Debt-to-Equity Ratio of 0.65, reflecting moderate leverage. The company has consistently increased its stockholders' equity, contributing to a stable Equity Ratio of 42.44%. Return on Equity (ROE) stands at 8.31%, indicating efficient use of equity capital. However, the increasing total debt over the years could pose a risk if not managed carefully.

Cash Flow

WSP Global shows strong cash flow generation with a 15.65% growth in Free Cash Flow in the TTM period. The Operating Cash Flow to Net Income Ratio of 2.25 indicates robust cash flow relative to net income. However, the Free Cash Flow to Net Income Ratio of 2.02 suggests a high dependency on non-operating activities to generate free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.97B	16.17B	14.44B	11.93B	10.28B	8.80B
Gross Profit	10.37B	12.17B	2.18B	8.96B	7.87B	6.86B
EBITDA	1.97B	1.89B	1.64B	1.26B	1.22B	937.90M
Net Income	698.70M	681.40M	550.00M	431.80M	473.60M	276.00M
Balance Sheet
Total Assets	19.81B	20.20B	15.58B	14.84B	11.25B	8.84B
Cash, Cash Equivalents and Short-Term Investments	562.00M	791.50M	501.10M	603.80M	1.07B	555.20M
Total Debt	5.49B	5.66B	4.26B	4.08B	2.80B	1.59B
Total Liabilities	11.40B	11.93B	9.25B	8.83B	6.59B	4.76B
Stockholders Equity	8.41B	8.27B	6.33B	6.01B	4.66B	4.08B
Cash Flow
Free Cash Flow	1.41B	1.22B	806.30M	648.30M	938.90M	1.03B
Operating Cash Flow	1.57B	1.38B	986.30M	814.80M	1.06B	1.13B
Investing Cash Flow	-2.40B	-2.44B	-510.40M	-2.68B	-1.34B	-185.30M
Financing Cash Flow	844.10M	1.31B	-597.40M	1.42B	790.20M	-746.30M

WSP Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 281.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WSP, the sentiment is Positive. The current price of 281.61 is above the 20-day moving average (MA) of 275.39, above the 50-day MA of 271.79, and above the 200-day MA of 252.89, indicating a bullish trend. The MACD of 2.85 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WSP.

WSP Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	79 Outperform	C$1.64B	16.35	26.31%	2.83%	16.14%	27.71%
STN	79 Outperform	$17.22B	44.62	13.13%	0.60%	15.62%	9.66%
WSP	78 Outperform	C$36.76B	51.24	9.42%	0.53%	16.77%	21.38%
BDGI	76 Outperform	$1.71B	25.57	19.89%	1.48%	10.97%	24.27%
ATRL	73 Outperform	$16.39B	56.25	8.66%	0.08%	12.05%	1.32%
Sector *	65 Neutral	$10.85B	15.47	5.22%	1.89%	3.09%	-26.84%
ARE	55 Neutral	C$1.31B	―	-9.26%	3.71%	1.70%	-154.73%

WSP Global Corporate Events

WSP Global Strengthens Board with High-Tech Industry Leader

WSP Global Inc. has announced the appointment of Pascale Sourisse to its Board of Directors, enhancing its governance with her extensive experience in high-tech industries. Her addition aligns with WSP’s strategic focus on expanding into high-growth areas like digital and advanced manufacturing, aiming to drive sustainable growth and long-term value creation.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$264.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global Expands with Acquisition of Ricardo plc

WSP Global Inc. has announced its acquisition of Ricardo plc, a UK-based strategic and engineering consultancy firm, for 430 pence per share. This acquisition aligns with WSP’s strategic plan to enhance its capabilities in high-growth sectors such as rail, energy transition, and water solutions. The integration of Ricardo’s expertise will bolster WSP’s service offerings and strengthen its market position in key regions like the UK, Australia, and the Netherlands. The acquisition, valued at approximately £363.1 million, is expected to create new opportunities for WSP by combining its global reach with Ricardo’s specialized knowledge.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$264.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global Inc. Shareholders Approve Key Business Items at Annual Meeting

WSP Global Inc. held its annual meeting of shareholders, where approximately 83% of all issued and outstanding common shares were represented. Shareholders voted in favor of all business items, including the election of eight directors and the appointment of PricewaterhouseCoopers LLP as independent auditors. A non-binding advisory vote on executive compensation was also adopted, reflecting shareholder support for the company’s compensation plans. These outcomes reinforce WSP’s stable governance and strategic direction, potentially strengthening its market position and stakeholder confidence.

WSP Global Reports Strong Q1 2025 Financial Results and Record Backlog

WSP Global Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $4.39 billion, a 22.4% increase from the previous year. The company’s backlog reached a record $16.6 billion, indicating robust future project commitments. Adjusted EBITDA grew by 19.7% to $533.9 million, reflecting improved operational efficiency. Despite higher acquisition and integration costs, primarily due to the acquisition of POWER Engineers, WSP maintained a stable adjusted EBITDA margin of 16.0%. The positive financial performance underscores WSP’s solid industry positioning and growth trajectory, benefiting stakeholders with increased earnings and a strong backlog.

WSP Global Inc. Reports Strong Q1 2025 Results with Record Backlog

WSP Global Inc. reported strong financial results for the first quarter of 2025, with revenues reaching $4.39 billion, a 22.4% increase from the previous year. The company’s backlog grew to a record $16.6 billion, reflecting robust demand for its services. Key financial metrics, such as adjusted EBITDA and net earnings, showed significant growth, driven by higher operational performance despite increased acquisition costs. The results underscore WSP’s solid market positioning and its ability to capitalize on growth opportunities, benefiting stakeholders and reinforcing its industry leadership.

WSP Global Advances Sustainability with 2024 Report and Future Targets

WSP Global Inc. has released its 2024 Global Sustainability Report, highlighting significant achievements in sustainability, including a record 65.1% of SDG-linked revenues and a substantial reduction in greenhouse gas emissions. The company has also improved employee retention and internal leadership promotions, maintaining its ethical standards and sustainability rankings. Looking forward, WSP has set ambitious sustainability targets for 2025-2027 to support its strategic growth and commitment to positive stakeholder impact.