WSP Global (WSP) AI Stock Analysis

• Market Cap: C$36.73B
• Dividend Yield: 0.54%
• Average Volume (3M): 293.45K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.90
• Revenue Growth: 18.24%
• EPS Growth: 28.47%
• Country: CA
• Employees: 72,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 2.35
• Shares Outstanding: 130,607,700
• 10 Day Avg. Volume: 260,759
• 30 Day Avg. Volume: 293,455
• PEG Ratio: 2.09
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 26.19
• 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$322.13
• Price Target Upside: 14.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: C$321.00 ▲(14.56% Upside)

WSP Global's strong financial performance and positive earnings call are the most significant factors contributing to its high score. The company's consistent revenue growth, strategic acquisitions, and robust cash flow position it well for future growth. However, the high P/E ratio and low dividend yield suggest potential overvaluation, which slightly offsets the overall score.

Positive Factors

Revenue Growth

WSP Global's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term competitiveness and expansion.

Strategic Acquisitions

Strategic acquisitions enhance WSP Global's service offerings and market reach, positioning it for sustained growth and diversification in key sectors.

Cash Flow Strength

Strong cash flow growth provides WSP Global with the financial flexibility to invest in growth opportunities and manage debt effectively, supporting long-term stability.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain WSP Global's financial resources, potentially impacting its ability to invest in growth and maintain operational flexibility.

Challenges in APAC Region

Operational challenges in the APAC region may hinder WSP Global's margin improvement efforts, affecting profitability and growth prospects in that market.

Legislative Uncertainties

Potential legislative changes introduce uncertainties that could affect WSP Global's operational strategies and financial performance, posing risks to long-term planning.

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 strong financial performance with consistent revenue growth, healthy profit margins, and solid cash flow generation. The balance sheet is stable, though rising debt levels should be monitored. Overall, the company is well-positioned for continued growth and operational success.

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	2.84B	2.60B	2.18B	1.70B	1.50B	1.16B
EBITDA	2.11B	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	432.60M	791.20M	501.10M	603.00M	1.06B	553.40M
Total Debt	5.23B	5.79B	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	1.64B	1.03B	652.40M	626.70M	926.00M	1.02B
Operating Cash Flow	1.79B	1.18B	812.30M	757.60M	1.03B	1.09B
Investing Cash Flow	-2.42B	-2.47B	-533.00M	-2.70B	-1.36B	-204.70M
Financing Cash Flow	679.40M	1.54B	-400.80M	1.50B	838.00M	-696.50M

WSP Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 280.21
• 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 280.21 is above the 20-day moving average (MA) of 277.14, above the 50-day MA of 280.03, and above the 200-day MA of 264.86, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.98 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$36.73B	44.88	10.52%	0.54%	18.24%	28.47%
STN	75 Outperform	$17.91B	41.01	14.26%	0.56%	12.49%	26.18%
BDT	74 Outperform	C$1.64B	16.41	25.25%	2.73%	8.49%	14.10%
ATRL	72 Outperform	$16.17B	6.66	57.95%	0.08%	13.07%	697.05%
BDGI	67 Neutral	$2.30B	30.12	21.65%	1.07%	11.48%	38.41%
ARE	66 Neutral	C$1.54B	60.86	2.78%	3.08%	20.53%	74.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

WSP Global Corporate Events

WSP Global Completes Acquisition of Ricardo plc to Strengthen Market Position

WSP Global Inc. has completed the acquisition of Ricardo plc, a strategic and engineering consultancy firm, enhancing its capabilities in advisory, energy transition, water solutions, and rail. This acquisition aligns with WSP’s 2025–2027 Global Strategic Action Plan, strengthening its market presence and accelerating growth in high-demand sectors, thereby offering greater innovation and value to clients.

The most recent analyst rating on (TSE:WSP) stock is a Buy with a C$311.00 price target. To see the full list of analyst forecasts on WSP Global stock, see the TSE:WSP Stock Forecast page.

WSP Global’s Earnings Call Highlights Growth and Optimism

WSP Global Inc. recently held its earnings call, revealing a positive outlook for the company. The call highlighted significant growth in profitability and cash flow, alongside strategic acquisitions that are set to enhance future prospects. Despite facing some challenges in the APAC region, the overall performance and future forecast suggest strong business momentum for WSP Global.

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.