WSP Global (WSP) AI Stock Analysis

• Market Cap: C$31.89B
• Dividend Yield: 0.61%
• Average Volume (3M): 260.57K
• Price to Earnings (P/E): 45.2
• Beta (1Y): 0.85
• Revenue Growth: 11.98%
• EPS Growth: 22.53%
• Country: CA
• Employees: 72,800
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): 5.41
• Shares Outstanding: 130,507,060
• 10 Day Avg. Volume: 242,632
• 30 Day Avg. Volume: 260,570
• PEG Ratio: 2.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$297.11
• Price Target Upside: 21.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

WSP Global's strong financial performance and positive earnings call are significant strengths driving the stock's appeal. While technical indicators suggest caution and high valuation poses a risk, the company's strategic growth and solid cash position are key positives. Managing debt levels and regional challenges will be important for future performance.

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. operates as a professional services consulting firm in the United States, Canada, the United Kingdom, Sweden, Australia, and internationally. It advises, plans, designs, and manages projects for rail transit, aviation, highways, bridges, tunnels, water, maritime, and urban infrastructure for public and private clients, construction contractors, and other partners. The company also provides engineering and consultancy services, such as decarbonisation strategies, digital building design, structural and mechanical, electrical, and plumbing engineering services; and long-term operational management support services, including first feasibility studies; and advisory services, such as technical, financial, and environmental issues, as well as engineering design and energy simulations. In addition, it works with and advises businesses and governments in various areas of environmental consultancy, including environmental, social, and governance matters. Further, the company provides engineering and environmental services to companies operating in upstream exploration and production, midstream transportation and storage, and downstream refining and distribution; and a range of consulting and engineering services, such as strategic studies, concept design, and productivity analysis to the food and beverages, pharmaceutical and biotechnology, automotive, and chemicals industries. Additionally, it offers strategic advisory services comprising planning and advisory, management, and technology and sustainability services. The company was formerly known as GENIVAR Inc. and changed its name to WSP Global Inc. in January 2014. WSP Global Inc. was founded in 1885 and is headquartered in Montreal, Canada.

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 shows strong financial performance with significant revenue and profit growth. Despite operational challenges indicated by absent EBIT for 2024, the firm maintains robust net profit margins. Solid cash flow management supports this strength, although rising debt levels could pose a risk.

Income Statement

WSP Global has demonstrated strong revenue growth, with Total Revenue rising from $8.8B in 2020 to $16.2B in 2024. Gross Profit Margin improved significantly, reflecting efficient cost management. However, EBIT is absent for 2024, which suggests potential operational challenges. Despite this, Net Profit Margin has remained robust, bolstered by consistent EBITDA growth.

Balance Sheet

The company's financial leverage has increased with higher Total Debt, leading to a higher Debt-to-Equity Ratio. However, Stockholders' Equity has grown steadily, supporting a stable Equity Ratio. The Return on Equity has improved, indicating effective utilization of equity capital, but rising debt levels pose a potential risk.

Cash Flow

WSP Global has shown positive Free Cash Flow growth, with Operating Cash Flow consistently exceeding Net Income, indicating strong cash generation capabilities. The Free Cash Flow to Net Income ratio is favorable, though the firm has experienced fluctuating cash flows from investing and financing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.17B	14.44B	11.93B	10.28B	8.80B
	Gross Profit
12.17B	2.18B	8.96B	7.87B	6.86B
	EBIT
0.00	1.20B	883.20M	766.80M	574.30M
	EBITDA
1.89B	1.64B	1.26B	1.22B	937.90M
	Net Income Common Stockholders
681.40M	550.00M	431.80M	473.60M	276.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
791.50M	501.10M	603.80M	1.07B	555.20M
	Total Assets
20.20B	15.58B	14.84B	11.25B	8.84B
	Total Debt
5.66B	4.26B	4.08B	2.80B	1.59B
	Net Debt
5.04B	3.89B	3.59B	1.87B	1.16B
	Total Liabilities
11.93B	9.25B	8.83B	6.59B	4.76B
	Stockholders Equity
8.27B	6.33B	6.01B	4.66B	4.08B
Cash Flow		Free Cash Flow
1.22B	806.30M	648.30M	938.90M	1.03B
	Operating Cash Flow
1.38B	986.30M	814.80M	1.06B	1.13B
	Investing Cash Flow
-2.44B	-510.40M	-2.68B	-1.34B	-185.30M
	Financing Cash Flow
1.31B	-597.40M	1.42B	790.20M	-746.30M

WSP Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 244.36
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 244.36 is above the 20-day moving average (MA) of 241.78, below the 50-day MA of 245.96, and above the 200-day MA of 241.19, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 21.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WSP.

WSP Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSP	79 Outperform	C$31.89B	45.22	9.33%	0.61%	11.98%	22.53%
Sector *	63 Neutral	$4.23B	11.54	5.34%	209.77%	4.14%	-9.49%
ARE	52 Neutral	C$1.01B	―	-5.87%	4.78%	-8.64%	-136.62%

WSP Global Corporate Events

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.

Spark’s Take on TSE:WSP Stock

According to Spark, TipRanks’ AI Analyst, TSE:WSP is a Outperform.

WSP Global exhibits strong financial health with impressive revenue growth and strategic achievements, as highlighted in the earnings call. The main strengths include robust cash flow and successful integration of acquisitions. However, high valuation and increased debt levels pose potential risks. Technical indicators are mixed, suggesting some caution in the short term.

To see Spark’s full report on TSE:WSP stock, click here.

WSP Global Exceeds 2024 Financial Expectations, Poised for Future Growth

WSP Global Inc. reported strong financial results for the fourth quarter and full year of 2024, surpassing management’s expectations in growth and profitability. The company achieved mid- to high-single-digit net revenue organic growth during its 2022-2024 strategic cycle and generated strong free cash flow, indicating robust financial health. With a solid balance sheet, WSP is well-positioned to implement its 2025-2027 Global Strategic Action Plan, which is expected to further enhance its market positioning and growth aspirations.