WSP Global (WSP) AI Stock Analysis

• Market Cap: C$36.76B
• Dividend Yield: 0.53%
• Average Volume (3M): 183.92K
• Price to Earnings (P/E): 45.7
• Beta (1Y): 0.84
• Revenue Growth: 18.24%
• EPS Growth: 28.47%
• Country: CA
• Employees: 72,600
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 2.35
• Shares Outstanding: 130,607,700
• 10 Day Avg. Volume: 171,167
• 30 Day Avg. Volume: 183,919
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$311.89
• Price Target Upside: 11.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: C$322.00 ▲(15.21% Upside)

WSP Global's strong financial performance and positive earnings call are the most significant factors contributing to the score. The company's strategic growth initiatives and robust cash flow position it well for future opportunities. However, the high valuation and technical indicators suggest caution. Challenges in the APAC region and potential legislative impacts are risks to monitor.

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 Canadian multinational professional services firm headquartered in Montreal, Quebec. It is one of the world's leading engineering and professional services consulting firms, providing expertise in sectors such as transportation and infrastructure, property and buildings, environment, industry, resources (including mining and oil & gas), and energy. The company delivers engineering, design, and consulting services to support sustainable development and innovative projects globally.

How the Company Makes Money

WSP Global makes money primarily through providing engineering and consulting services across its various sectors. The company generates revenue from fees charged for its professional services, which include planning, design, consulting, and management services for infrastructure projects. Key revenue streams include project-based contracts with governmental agencies, private sector clients, and other organizations seeking infrastructure and development solutions. The firm also engages in strategic partnerships and collaborations to enhance its service offerings and expand its market presence. Significant factors contributing to its earnings include its global reach, reputation for technical expertise, and the growing demand for sustainable and innovative infrastructure solutions worldwide.

WSP Global Financial Statement Overview

Summary

WSP Global exhibits a strong financial position with consistent revenue growth, healthy profit margins, and solid cash flow generation. The company's balance sheet is stable, though the rising debt levels should be monitored. Overall, WSP Global is well-positioned for continued growth and operational success in the engineering and construction industry.

Income Statement

WSP Global demonstrates strong revenue growth with a 3.39% increase in TTM, supported by robust gross and net profit margins of 75.31% and 4.53%, respectively. The EBIT and EBITDA margins are healthy at 7.90% and 12.09%, indicating efficient operational performance. Consistent revenue growth over the years highlights the company's competitive positioning in the industry.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.61, reflecting prudent financial leverage. Return on equity is commendable at 9.93%, showcasing effective use of shareholder funds. The equity ratio stands at 44.07%, indicating a stable capital structure. However, the increase in total debt over the years warrants monitoring.

Cash Flow

WSP Global's cash flow is strong, with a significant 31.32% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 2.53 indicates robust cash generation relative to earnings. The free cash flow to net income ratio of 0.92 suggests efficient cash conversion. Overall, the cash flow position supports future growth and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.55B	16.17B	14.44B	11.93B	10.28B	8.80B
Gross Profit	13.21B	12.17B	2.18B	8.96B	7.87B	6.86B
EBITDA	2.13B	1.89B	1.64B	1.26B	1.22B	937.90M
Net Income	794.00M	681.40M	550.00M	431.80M	473.60M	276.00M
Balance Sheet
Total Assets	19.23B	20.20B	15.58B	14.84B	11.25B	8.84B
Cash, Cash Equivalents and Short-Term Investments	685.40M	791.50M	501.10M	603.80M	1.07B	555.20M
Total Debt	5.13B	5.66B	4.26B	4.08B	2.80B	1.59B
Total Liabilities	10.75B	11.93B	9.25B	8.83B	6.59B	4.76B
Stockholders Equity	8.47B	8.27B	6.33B	6.01B	4.66B	4.08B
Cash Flow
Free Cash Flow	1.85B	1.22B	806.30M	648.30M	938.90M	1.03B
Operating Cash Flow	2.01B	1.38B	986.30M	814.80M	1.06B	1.13B
Investing Cash Flow	-2.39B	-2.44B	-510.40M	-2.68B	-1.34B	-185.30M
Financing Cash Flow	426.90M	1.31B	-597.40M	1.42B	790.20M	-746.30M

WSP Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 279.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 279.49 is below the 20-day moving average (MA) of 280.95, below the 50-day MA of 281.52, and above the 200-day MA of 260.23, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.29 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
WSP	78 Outperform	C$36.76B	45.70	10.52%	0.53%	18.24%	28.47%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
STN	―	$12.36B	39.33	14.26%	0.58%	―	―
SNCAF	―	$11.35B	6.48	57.95%	0.08%	―	―
BDGIF	―	$1.41B	25.46	21.65%	1.26%	―	―
BDT	71 Outperform	C$1.45B	14.72	25.25%	3.03%	8.49%	14.10%
ARE	66 Neutral	C$1.33B	52.58	2.78%	3.65%	20.53%	74.96%

WSP Global Corporate Events

WSP Global Reports Strong Q2 2025 Financial Results with Enhanced Outlook

WSP Global Inc. reported strong financial results for the second quarter of 2025, with significant increases in revenues and adjusted EBITDA. The company’s adjusted EBITDA margin improved by 80 basis points, and free cash inflow saw a substantial rise compared to the previous year. The financial outlook for 2025 has been enhanced, with adjusted EBITDA expected to reach the higher end of the projected range. WSP’s backlog increased to $16.3 billion, indicating a robust pipeline of future projects, particularly in the Nordics, Australia, and New Zealand. This performance underscores WSP’s solid market positioning and growth trajectory, benefiting stakeholders and enhancing its competitive edge in the global professional services industry.

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 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.